You might not like the income tax due on "winning" a 2 Million Dollar villa.

Nor the real Estate Tax due to keep it! (td)

[Real Estate] or Property Tax here is actually quite reasonable. You could also self insure since you would have no mortgage.

Wow, that's some bunch of tickets they've gotta sell if they're seeking 2 mil or close: 20,000 tickets.

I wondered what would happen if they didn't sell them all. Fortunately, they thought of that, too:

<>

A creative sales idea, though--hope it goes well for them.

Best,

Ilo

An island B&B tried the same thing - I believe twice - several years ago and it went down like a zinc cupcake!

So Connie,
Did you buy a ticket? It is a great way to advertise for sure!
Jeff and I figured about a half mil in taxes if you win.
STT, I remember that, it never materialized.
Good Luck tho, hope you win! (tu)

According to the rules, the odds are 1 in 25,000, so I guess they are going to try to sell 25,000 tickets. You'd probably need to get a mortgage on it to pay your taxes to the IRS! Unless, of course, you have all kinds of money sitting around to pay them.

Good luck to all those that buy a ticket! I will gladly come visit for the celebration!

C Urchin

I couldnt afford the taxes on the driveway. lol

If I remember correctly, the previous B&B (was it Island View Guest House or somewhere in that area) actually had an essay contest with a fee to enter instead of a raffle & the owners would decide who won but they didn't get enough entries so they gave up. It was an older couple who owned it & I think they wanted to move back Stateside.

The essay contest was for the Danish Chalet guest house -essay accompanied by an entry fee - it never took place and supposedly the money was returned -- on St John a business tried the same thing - Mixology Warehouse - not sure if an essay was involved in that one - also the drawing did not take place.

That's it. Danish Chalet! Thanks, Exit Zero.

Island View was a straight raffle, similar to this villa's.

The real estate taxes per year on this villa are roughly $7,000. Currently the villa brings in over $100,000/year in rentals. The math seems pretty good on that.

As far as income tax goes you can sell the villa or rent it. I'm pretty sure getting a loan for $500,000 will be pretty safe on a 2 million dollar property. If you can't get the loan find an investor who can, sell the property and pay them a percentage of the profits. trust me there are a lot of ways to skin the cat on this one. I think it's a good problem to have! Think of all the ways you blow a $100 on?

BigKahuna -- shouldn't you identify your interest as the Marketing Company of this raffle -- in the interest of online fairness??

Sure, but I wasn't being biased, just offering out facts. I only wish I could buy a ticket.

A villa out on Cabrita Point tried this many years ago. They didn't meet the minimum.
Not to be a naysayer...;)

If they don't meet the minimum you get your dough back...nothing to really lose. Someone will win it if they do meet the minimum and the odds are way better than playing the lottery. Again, just facts here, no bias.

Big: I am not concerned about bias, but if you are marketing this scheme, you really should disclose that information. You DO have a stake in it. Self-promotion is a slippery slope.

Yes I have been hired to market it, but I did not start this thread, nor am i promoting it. I'm just pointing out facts because people asked about taxes and income tax. And although I am marketing it I don't have a stake, I'm being paid by the owner if the villa sells or not. It doesn't matter to me one way or the other who wins, although I think it would be neat to see a local win. And just for the record this is not a "scheme", it is a legitimate contest being run by ReMax.