The owner of the Augusta Hills Golf Course in Albion, Indiana is employing an unusual strategy to fund his retirement: he is holding a closest to the pin contest on the par 3, 130-yard 15th hole. Under the contest rules:
- Entry fee: $1,000
- Minimum number of entires: 1,500
- Maximum number of entries: 2,500
- Winner receives:
- 18-hole golf course
- clubhouse
- maintenance building
- storage building
- equipment (including 30 golf carts)
- no debt on the property
- Entry deadline: August 1
- Contest begins: September 5
Tax issues abound:
- Seller:
- Ordinary income of $1.5 – 2.5 million?
- Capital gain after basis offset?
- Winner:
- Ordinary income of fmv of course – entry fee?
- Acquisition of course for $1,000, which becomes basis in the property?
- Non-winning participants:
- Any way to deduct the $1,000 entry fee?
For press reports, see the Indianapolis Star. (Hat Tip: Joshua P. Hollingsworth.)
3 responses to “Prize in Closest-to-the-Pin Contest: The Golf Course!”
For Sale: $1000 for a Golf Course
This is a fun story. From the Indianapolis Star: If you care to spend $1,000 and are skilled or lucky enough to win Bob Placidos closest-to-the-hole contest, your prize is the hole, and the golf course and 125 acres upon…
I vaguely recall reading about a simliar arrangement with regard to a bowling alley. The tournament winner got the keys. Certainly not a bad way of creating your own market.
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