Posted on 09/01/2009 9:48:00 AM PDT by 2ndDivisionVet
Due to the economy and weak real estate market, Miles Brannan is raffling off his luxury home in Fort Lauderdale, Florida. The raffle is attracting buyers from around the world due to both the appealing price of $10 per ticket and international interest in U.S. real estate.
Brannan's raffle is a great deal for foreign investors who want to break into the market because the deed and title will be transferred to the lucky winner free and clear. There will be no need for a jumbo mortgage or creative financing, making the $10 investment an even more attractive offer.
"The $10 ticket makes the drawing more affordable for everyone, and we're seeing activity coming from overseas as well because of the low price. Besides the tickets sold here in the U.S. and in Canada, we've had buyers from European countries like England and Germany, and even as far away as Australia," Brannan commented.
The Florida home's spacious open floor plan includes 6 bedrooms and 6.5 baths. The master suite is 1,000 square feet and has a second story balcony overlooking the waterway. The estate also has a theater room with a 120" screen, 4 car garage, and beautiful winding staircase. Information on other amenities and photos can be found at www.floridaluxuryauctions.com.
Only 300,000 tickets will be sold for this raffle, and the drawing will take place once all tickets have been sold. Once the drawing has taken place the winner will be notified within 24 hours by phone, e-mail or certified mail. Winners do not need to be present to win. All monies collected will be held by Chicago Title Insurance Agency, Inc.
You shouldn’t owe any more income taxes.
Heck, it even SEEMS that the transaction would be a capital loss. In a fair world, the act of selling for 2.3 million should set the price to 2.3 million, which would mean you’d only owe income taxes of that much.
But my guess is that the loss on the house wouldn’t even be realizable, other than balanced against any short-term capital gains you might have lying around.
The original suggestion was to sell $5 tickets to sell quickly, which if you sold the same number of tickets, would net you 1.5 million. Still might come out a hundred thousand ahead or so — there would be property sales tax, and whatever monthly property tax you incurred while waiting for the other sale.
At the link it says the property taxes are $28,000 per annum. Still high, but not $60,000.
Yes, for the current owner. Property is re-valued at the time of sale. Homestead exemption is only $25K.
In today’s down market, wouldn’t that mean the house is worth less than before, lowering your property taxes?
The Property Appraiser would say you sold $3 million worth of tix, therefore, the house is worth $3 million. It is then up to you to prove it is worth less.
If I won the first thing I would argue is that is wasnt worth 3 mil.
Don’t know when gain would be realized either.
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