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  #31  
Old 10-07-2014, 01:54 PM
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N941WR N941WR is offline
 
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Originally Posted by boom3 View Post
Awesome job Bob and congratulations to Steve!
Ditto!

I wish you many happy flights in your new plane!
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RV-9 (Yes, it's a dragon tail)
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Build the plane you want, not the plane others want you to build!
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  #32  
Old 10-07-2014, 02:00 PM
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LettersFromFlyoverCountry LettersFromFlyoverCountry is offline
 
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The complicating factor with regard to taxes (some of mine are used to make really nice runways and take care of my neat small airport, by the way) is that it's based on the FMV of the prize which fell from the sky.

One of the things I learned on my visit to SteinAir this morning, is the companies that worked on the plane and put new equipment on the plane, indicate full sticker price because they get some bigger tax break themselves by doing so, shifting the tax burden over to the winner.

Ideally they'd indicate a lesser value for the components and service but I suppose I can't begrudge them wanting to dodge as many taxes as possible, too.

No matter what, when all is said and done and even after taxes, someone ends the day with a pile of cash they didn't start the day with.

Which is cool.

VERY few winners of the AOPA airplanes, I learned today, actually keep them because, in many cases, it doesn't fit the mission . If this had happened to me, that's what I'd do. I already have an airplane for what my mission is and family situation is.

But one of the most exciting parts about THIS airplane is that the Debonair seems to fit Steve's mission perfectly.

BTW, I bet the bottom-feeders come out of the woodwork over the next few weeks making Steve some ridiculous low-ball offers, knowing he has a tax burden on his hand. I reserve my disgust for them.
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Bob Collins
St. Paul, MN.
Blog: Letters From Flyover Country
RV-12iS Powerplant kit
N612EF Builder log (EAA Builder log)
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Last edited by LettersFromFlyoverCountry : 10-07-2014 at 02:07 PM.
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  #33  
Old 10-07-2014, 02:15 PM
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Default Congrats

Congrats on the win!!! Very cool.

Regarding taxes, Brother Dan Horton can probably enlighten us on the potential tax bill. He won the Husky a few years ago.
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  #34  
Old 10-07-2014, 02:50 PM
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AOPA has posted a tease video to the story page now.
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  #35  
Old 10-07-2014, 04:02 PM
WhiskeyMike WhiskeyMike is offline
 
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Hello, my name is Mike. Welcome to the "Church of VAF" where we take you closer to God in heavenly chariots that our missionaries build and fly. You can donate a chariot also! Bless you!
Thank you Father Michael for your welcoming encouragement!

Quote:
Originally Posted by LettersFromFlyoverCountry View Post
VERY few winners of the AOPA airplanes, I learned today, actually keep them because, in many cases, it doesn't fit the mission.
This is not the only reason.

It is a seldom published fact that in the majority of cases where a person wins a high-value non-cash prize, the winner is forced to sell the prize to generate the cash required to pay the associated tax burden. The net benefit to the prize winner resulting from this scenario is typically less than casual observers assume. A contributing factor to the under-realization is that in many cases the non-cash prize cannot be sold for 100% of the prize?s ?taxable? value. And when this occurs the prize winner does not get to reduce the value of the prize for tax purposes to the selling price. A simple example makes well the point. If you win a car valued at $50k but can only sell it for $40k you end up with $40k to cover the tax obligations associated with $50k of taxable income. After paying federal and state taxes the net winnings can easily be only 30-40% of the original prize value. No question this is still better than not winning at all, but the net results can be underwhelming compared to the initial euphoria associated with wining the prize in the first place.
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  #36  
Old 10-07-2014, 04:12 PM
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A hearty congrats to the winner! Sell the Cardinal 1/2 share to pay the taxes and enjoy your new (slower) Debonair.

The obvious moral of the story is that if you get a call from Bob Collins asking to hitch a ride ... don't question him. Just tell him to hop in, strap in, mount his camera and start smiling, because something GREAT is about to happen!
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  #37  
Old 10-07-2014, 04:19 PM
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LettersFromFlyoverCountry LettersFromFlyoverCountry is offline
 
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Originally Posted by WhiskeyMike View Post
This is not the only reason.
Right, I didn't mean to imply it was the only reason and in "not fit the mission," that includes the cost vs. the reward and there's also the insurance, hangar etc.

I don't minimize any of those, at the same time I don't feel as though a winner is a victim* in these scenarios. If they walk away with $100,000 in their pocket, I'm not going to get incredibly worked up because it wasn't $150k.

Either way, they had a good day.


(* - to clarify, since I talked to him last night for more than an hour, in no way is Steve suggesting he's a victim. But in these discussions, as they turn more political, there is a level of outrage about the alleged unfairness. I do have sympathy for the burden that taxes can cause , but it's more for the person whose house is underwater, lost their job, sold the home for pennies on the dollar, and had the good fortune of having half of the mortgage forgiven. The taxes are assessed on the mortgage that was forgiven as if it was income. Nobody seems to be skating on the tax bite except the ones who have the wherewithall to game the system. Meanwhile some guy on Kickstarter asks for $10 to invent potato salad, and Americans throw a quick 50 grand at him. It's a great country! )
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Bob Collins
St. Paul, MN.
Blog: Letters From Flyover Country
RV-12iS Powerplant kit
N612EF Builder log (EAA Builder log)
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Last edited by LettersFromFlyoverCountry : 10-07-2014 at 04:35 PM.
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  #38  
Old 10-07-2014, 04:21 PM
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In the pre VAF days I contacted AOPA about restoring a J-3 Cub, Champ, Tcraft, Luscomb, and Ercoupe and give them all away to different people in the same year. They could do comparison stories on them all year and the five winners could probably afford to keep them.

They didn't want to hear it but I still think it would be a cool way to go.
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RV-9 (Yes, it's a dragon tail)
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Build the plane you want, not the plane others want you to build!
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  #39  
Old 10-07-2014, 04:35 PM
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Quote:
Originally Posted by RV7Guy View Post
Regarding taxes, Brother Dan Horton can probably enlighten us on the potential tax bill. He won the Husky a few years ago.
Just another example of why I'm the luckiest SOB you ever met.

Steve, that was a great landing, all things considered.

Bob, ya did good.

Ok gents, this is the sort of notable event that should result in call signs. For Steve, "Lucky" or "Snipe Hunt" might do. The REAL question is one for Bob, given his talent for devious dealings
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  #40  
Old 10-07-2014, 04:46 PM
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LettersFromFlyoverCountry LettersFromFlyoverCountry is offline
 
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Ok gents, this is the sort of notable event that should result in call signs. For Steve, "Lucky" or "Snipe Hunt" might do. The REAL question is one for Bob, given his talent for devious dealings
Checkoway gave me one but then it disappeared when he did.

"Haybale."







OK, it was actually straw, but close enough.
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Blog: Letters From Flyover Country
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