You pay taxes on the planes value at the time you win it. Those taxes
are due the April 15th after you win it, assuming you normally file your
taxes only on 4/15. If you sell the plane that only affects your tax
bill if you sell it for more than AOPA says it was worth when you got
it. But that's true for any asset.



David Reinhart wrote:

Why taxes on what you sold it for? It's not an investment, so capital gains don't
apply. You already paid taxex on the "income" of the prize value.

And if you did pay taxes on the sale, wouldn't you be able to write off the
difference as a loss?

Dave Reinhart



"G.R. Patterson III" wrote:


Nathan Young wrote:

Is that the money AOPA put into it, or market value? Wouldn't the
cost basis be the market value?

In the case of purchased items, it's what AOPA paid for them. In the case of
donated items, it's what AOPA would have paid for all the labor and materials
had they not been donated.

Which brings up another point. If you keep the plane, you pay taxes on whatever
AOPA says the value is. If you sell the plane, you pay taxes on what you got for
it. Which is probably a lot less than $225,500.

George Patterson
If a man gets into a fight 3,000 miles away from home, he *had* to have
been looking for it.