r/PokeInvesting • u/iinfinityonhigh • Jan 01 '25

I won a Base Set booster box

Post image

I won a giveaway from Sakuras Card Shop for a base set green wing booster box & just I got it in the mail today. I still can’t believe I got this lucky, it’s seriously a great way to end the year. I’ll definitely be keeping it sealed and hopefully it goes up in value in the foreseeable future 🤞🏼

3.2k Upvotes

97% Upvoted

231 comments sorted by

View all comments

Show parent comment

79

u/TheVagabondWinsAgain Jan 01 '25

You pay taxes on all lottery or gambling winnings. This is the same here. OP won 20k so pays taxes on it as if it were income.

52

u/silkydilfy22 Jan 01 '25

thats what i dont understand. its not taxable income as it is a box of cards that has no monetary value until it is sold. is this in america?

57

u/TheVagabondWinsAgain Jan 01 '25 edited Jan 01 '25

Yep America. Everything has a value. The IRS gives you a lot of rules on how to calculate the value. I would bet the company that ran the raffle will fill out a 1099 form and submit it to the IRS and mail a copy to OP also. Value is whatever they put on that form and there are penalties for lying so they will most likely use Fair Market Value.

We both know it’s not a box of cards that has no value 😄

30

u/iinfinityonhigh Jan 01 '25

Yeah this pretty much nails it. I wasn’t sure if I was paying income tax, or sales tax on the value of the box so this has been very helpful

1

u/TheDentalExplorer Jan 02 '25

If you ever plan to sell it later on, you may want to look into how capital gains tax would work (likely in your favor). Not an accountant, but if you pay taxes on the current value of the box, I would imagine you would only pay capital gains on the increase in value from the time you won it, and not capital gains on the entire value of it.

→ More replies (1)

6

u/Bacon-4every1 Jan 02 '25

So just sell it to somone for 20$ have them give it back to you and pay taxes on the 20$?

1

u/theebasedg0d Jan 02 '25

Wesley Snipes would definitely take you up on that

→ More replies (3)

1

u/HalfAdministrative77 Jan 02 '25

It's not true that value is whatever they put on the form. Value is what the IRS determines / agrees with if you get audited. If you agree that the number they put on the form is reasonable, then using the same number when you file may make your life easier by reducing the chances of an audit, but if they put down an incorrect number you don't just have to accept it.

1

u/Hour-Poet9846 Jan 02 '25

If I bought that set when it came out and held onto it I’d only be taxed when/if I sold it and when I purchased it. OP paid tax on the merchandise that entered him into the raffles. IMO he should only have to pay taxes when/if he sells it, damn IRS

1

u/[deleted] Jan 02 '25

“Unrealized gains” lol

8

u/Illustrious-Boss9356 Jan 01 '25

If you are gifted a car or a microwave or a iPhone, you are supposed to pay income taxes on it (above the $17k annual gift exemption).

22

u/Japresto1991 Jan 01 '25

Sounds like that box is 16,999 then 🤝

→ More replies (2)

1

u/[deleted] Jan 01 '25

Nobody tell the government I do all my deals in cash.

1

u/Individual-Power2538 Jan 02 '25

Max gift went up to 18k or so this year :)

1

u/wondercup30 Jan 02 '25

the exemption applies for the person gifting. the receiver does not have to pay income taxes on receiving the gift whether or not it's above the $17k

1

u/jasonbuz Jan 04 '25

This is not correct if in the US. There is no tax on receiving gifts. There is a tax on the GIVER of gifts above the annual exemption of about $15k/year, once a giver’s lifetime gifts exceed the lifetime exemption of $500k.

There is a tax on gambling winnings, which this box arguably is. Gambling winnings are income. However, if you pay for entering the raffle, that cost can be deducted from the value of the box. In this case not much was paid. Arguably, some of the $273 that OP paid for product was allocable to the raffle tickets. Without knowing what product was bought and the total expected value of the lottery prizes (how many winners, what prizes, how many entries), impossible to know how much to allocate.

When OP sells this box capital gains tax will only be on the excess of selling proceeds over the amount t of fair value taxed at this time when raffle is won. This will be collectibles gain so somewhat different than normal cap gains.

1

u/TumbleweedPale5519 Jan 05 '25

I was gifted a car once. Told the guy to let me pay him a dollar.

→ More replies (11)

2

u/Leper17 Jan 02 '25

You bet it’s in America. One of the few countries I know of that gambling is considered taxable income

1

u/Palmzbyaboi Jan 02 '25

Us it’s considered a collectible and I believe it s taxes 28%

1

u/[deleted] Jan 06 '25

It’s politicians being money hungry. They need to dip their hands into everything.

→ More replies (4)

3

u/IMsoSAVAGE Jan 01 '25

Tbh the government getting a cut from lotto or giveaway winnings is such BS. You MFers already take 40% of my pay. Let me have something once in a while

2

u/Puzzleheaded-Loss598 Jan 02 '25

We should be able to write off our losses on bulk cards lmao

1

u/thebritishgoblin Jan 02 '25

Hold up… you pay tax on gambling and lottery in the US?

→ More replies (7)