Is my raffle prize taxable?
June 6, 2003
Date: Thu, 1 May 2003
I won $10,000 for a raffle. How much is taxed on this? Is this considered a luxury tax?
Thank you very much,
Date: 2 Jun 2003
The excess of $10,000 over your raffle "donation" is taxable as gambling income. It is taxable on your individual income tax return and reported as "other income". Gambling losses may be deducted up to the amount of your winnings on Schedule A as a miscellaneous itemized deduction. This is not a luxury tax.
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