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Termyn8or -> RE: Can't sell your house? Raffle it off (11/10/2008 10:46:49 AM)
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Under common and statutory law in most countries there are some very specific rules for such an endeavor. For one, setting the drawing date, or whatever means which determines the winner might have to be a set date, rather than "when all the tickets are sold". You only get your price if all the tickets are sold. It also might be illegal to get more than fair market value, depends on where you are.
I don't mean just paying taxes on it as a business profit, I mean charges of illegal gambling. Again, it depends where you are. In some places you can go to jail for this. Of course in most reasonable jurisdictions it can be set up correctly, with any proceeds beyond the value of the prize and reasonable administrative fees going to a recognized charity, you can probably pull it off. You can also collect money for your time, and all costs involved, then you deal with the taxman on a personal level about this. In most venues all of the rules and policies of the contest must be printed on each ticket. An open ended drawing date may or may not be allowed by local law.
If it isn't and you only sell one ticket, then you are practically giving the house away. So check with an attorney IN YOUR AREA about this before trying to do it. I know some people who got busted for a charity scam a couple of years ago. They had all the ins, but it wasn't enough. Thing is, the kingpins of the operation did not get caught. The operatives were. One was the 17 year old daughter of a good friend of mine. All she did, at her first job in life that is, was sold these tickets. Yup, they opened up a retail location for just that purpose. Eventually the cops came. It made the paper, there were hundreds of people arrested. The major problem was that they were diverting too much of the money.
So bear that in mind if you are thinking of doing this. Also realize that in many places you need a special permit or something like that to even do this. Any profit, well you either know what to do or you don't. There are a whole lot of places where you simply are not allowed to profit from such a venture.
Just be careful when you are out there playing with the real sharks.
T
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