[Sweepstakes] EAA Reborn J-3 Cub

Discussion in 'Flight Following' started by AggieMike88, Dec 7, 2017.

  1. AggieMike88

    AggieMike88 Touchdown! Greaser!

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    Now offering reverse discounts.
  2. Shepherd

    Shepherd En-Route

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    Does anyone ever win these who doesn't already have a huge bank account and at least one other plane?
    Just curious.
     
  3. kyleb

    kyleb En-Route

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    Drake the Outlaw
    An acquaintance of mine won one a few years back. He quickly flipped it and used some of the proceeds to buy the engine for his RV-8. If he's wealthy, it isn't apparent from here...
     
  4. Greg Bockelman

    Greg Bockelman Administrator Management Council Member

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    Steingar did.
     
  5. Bill Jennings

    Bill Jennings Final Approach

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    Damn, that would look mighty fine next to the Mooney. One for travelling, one for low and slow, mooing at the cows, grass strips, etc.
     
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  6. steingar

    steingar Touchdown! Greaser!

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    Not only did Steingar win an airplane form these guys (still had to pay tax on the winnings, not a small bill), but he won a refurbished Piper Cherokee, i.e. a useful airplane for going places. Cubs are pretty and nostalgic, but I wouldn't be interested in doing a trip in one.

    At the time I did have another plane, but it was ratty and even slower than the Cherokee. Indeed, it was the proceeds from the sale of said airplane that paid the taxes. And if anyone thinks I have a big bank account they clearly don't know me very well.
     
  7. UngaWunga

    UngaWunga Cleared for Takeoff

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    I'd love to win the Cub. Fly it from NH to Oshkosh would be a hoot. 1500' AGL all the way, taking your time to do it, camping gear in the front seat.
     
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  8. CJ Rader

    CJ Rader Pre-takeoff checklist

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    TIE-Fighter
    Entered. I'm pre-emptively going to reserve some hangar space at my local airport in anticipation of my inevitable victory in this sweepstakes. I also plan on paying the taxes on this fine airplane with the proceeds earned from correctly guessing that 'Fruity Pebbles' was the Oreo Cookie mystery flavor. That $50,000 check should be arriving any day now. Even after paying the tax on the Piper Cub, with such a hefty sum busting out of my wallet, I'm certain I'll never need to work again.. So, now I'm off to give two-weeks notice to my employer.
     
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  9. Capt. Geoffrey Thorpe

    Capt. Geoffrey Thorpe Touchdown! Greaser!

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    On the other hand, a Cub does not require a medical for the PIC seat.
     
  10. UngaWunga

    UngaWunga Cleared for Takeoff

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    I'm curious what the tax is on something like this. Is it the registration tax for your home state? In NH for a vintage plane that'll be $25.
     
  11. Bill Jennings

    Bill Jennings Final Approach

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    I didn't sleep in Holiday Inn last night, but I'm pretty sure you'd pay the income tax on the value of the aircraft.
     
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  12. mscard88

    mscard88 Touchdown! Greaser!

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    I'd guess 20% of it's value for federal? :dunno:
     
  13. mscard88

    mscard88 Touchdown! Greaser!

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    Do you have to be an EAA member to enter? Oh wait, raffles are illegal in Alabama. Nevermind.
     
  14. kyleb

    kyleb En-Route

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    This is the correct answer. The trick is what value EAA places on the airplane. If they list the value as $100k, the tax bill won't be pleasant.

    Steingar, not to get into your business, how'd the tax value placed on your airplane compare with its actual market value? I ask because I've seen EAA and AOPA invest $200k in upgrades on a sweepstakes airplane that had a market ceiling far below that. I always wondered if the paperwork stuck you with a $200k airplane in that situation.
     
  15. Shepherd

    Shepherd En-Route

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    I have to confess. I hit the lottery, twice in one year.
    I was the last guy drafted under the old lottery system, and the second guy drafted under the new draft lottery.
    Lucky for me, I had already enlisted.
    :mad2:
     
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  16. steingar

    steingar Touchdown! Greaser!

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    Neither does my Mooney.

    The Cherokee had easily 100-150 AMUs worth of stuff done to it. I kid you not. Engine was rebuilt the highest standards, new prop, interior by Airmod, the works. It was easily the nicest aircraft I ever flew in, and my Mooney was a lateral if not downward transition.

    That said, the taxes were paid on the book value of a 1965 Cherokee, so they weren't that bad. And that makes sense to me. You can put all the money you want in your airframe, but if you want to sell it won't bring that much more than comparable airframes no matter what you did.
     
  17. Salty

    Salty Pattern Altitude

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    Huh?
     
  18. NordicDave

    NordicDave Pre-takeoff checklist

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    Yes you have to pay state and Fed income tax on prizes. My Mother won a luxury car from a promotion at out local grocery store chain. The firm that handled the prize said most people never take delivery due to the taxes. Common practice is to have the brokerage company managing the contest sell it to a local broker for an advantageous price and take the cash instead.

    In my Mother's case, the car has an MSRP sticker of $35,500. She took $25K from the broker instead. Broker got the car below whole sale to flip it fast for a profit, Mom got cash which she dumped it into her IRA tax mostly free under the catch-up rules, and everyone was happy.

    If she took the car, she would have had to then write a check for 35% (cal + Fed tax) of it's value and pay to have the car delivered from SoCal.