In the Stocks forum, a member asked about the cost basis of shares won in a club raffle.(https://www.stockcentral.com/for.../t4588-Transfer-of-share) If your club has held or is considering holding a raffle, here are some things to consider.
The raffle prize is ordinary income to the winner.
The prize winner should report the winnings on their personal tax return.
If the prize is stock, the cost basis to the winner is the FMV of the stock on the day of the win.
If the prize is stock, the acquisition date to the winner is the day of the win.
if the winner is a club member, do not use a partial withdrawal transaction to transfer club shares to the winner. This will reduce their ownership in the club. Contact ICLUBcentral support for help accounting for the raffle.
If the value of any prize is $600 or more and 300 times the cost to enter the raffle, the club will probably be required to file form W-2G with the IRS. Check the IRS web site and/or a tax professional regarding filing requirements.

Russell