On Nov 22, 11:25 am, wrote:
Mike Noel wrote:
Any idea what the tax value will be on the AOPA Cardinal? The latest AOPA
mag claims about 350K has been invested by various suppliers in the plane.
If the tax man thinks it is worth 350K, wouldn't someone need to shell out
nearly 100K in taxes to claim it?

When you win something you're taxed at the fair market value.

For something new, that's usually the retail price.

For something like the AOPA Cardinal, it is the going price for a
restored Cardinal.

If I won it, the first thing I'd do is go get 3 professional appraisals,
throw away the highest, and send the IRS (and State in my case) the
tax on the average.

AOPA is also required to supply the value to the IRS. They always low
ball it. If you want to challenge it you'll need to do that formally
with the IRS. Whenever large prizes like this are awarded the IRS is
involved.

-Robert