The kids at Pearland High School, a bit south of Houston, thought they had a novel way to raise some cash for scholarships: Raffle off a house. They got a house from a builder at cost and were aiming to sell enough $100 raffle tickets to earn over $100K. Only one problem - it's illegal for charities to award prizes whose value exceeds $50,000. Thus endeth the grand plan.
I have to say, even if this had been kosher, I'd consider this prize to be more trouble than its worth for the following reason:
Ken Vargas, a spokesman for the Internal Revenue Service in Austin, said depending on a person's income, the tax on $230,000 could be almost 39 percent, or $89,700.
Vargas said that tax would have to be paid before the April filing deadline.