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gbarlin
New Member

I bought a raffle ticket ($150) for a wine cellar worth $1000 at a charity auction. I won the raffle & gifted the prize back to the charity. Can any of this be deducted?

I understand that the cost of raffle tickets is not deductible.  The "wine cellar" was $1000 to spend at an online wine site. 
 I received a tax form from the charity acknowledging the donation of the wine cellar worth $1000.  I did not receive a tax form from them acknowledging that I had won the prize as I never took possession of the virtual wine cellar.   Don't know if I would also need to claim it as income in that situation?  
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2 Replies

I bought a raffle ticket ($150) for a wine cellar worth $1000 at a charity auction. I won the raffle & gifted the prize back to the charity. Can any of this be deducted?

You can’t deduct something that didn’t cost you anything. 

I bought a raffle ticket ($150) for a wine cellar worth $1000 at a charity auction. I won the raffle & gifted the prize back to the charity. Can any of this be deducted?

you do not get a 1099 for raffle winnings but a W-2G if it's required. in addition, the iRS states that for that form to be required 2 conditions must be met the winnings are over $600 and the prize is worth more than 300 times the cost of the ticket.  so you have $1,000 of income reported on Schedule 1 line 8i and a$1,000 charitable contribution 

 

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