“‘Tis impossible to be sure of any thing but Death and Taxes”
Christopher Bullock, The Cobler of Preston (1716)
Although many attribute the quote about death and taxes to Benjamin Franklin and Mark Twain, they seem to have plagiarized Mr. Bullock. Regardless of whom initially voiced that observation, the reality is true.
Many of you have asked why we cannot accept 3,000 entries and declare a winner. Here's why: Our accountant has said the sale of the house via the essay contest will not be treated as a traditional real estate transaction where $500,000 in capital gains taxes automatically are deducted because of our age, length of ownership, etc. Instead, the entry fees will be counted as personal income on which we will be taxed at approximately 40 percent when you combine the taxes we will owe to the IRS and the commonwealth of Virginia.
Let's do the math in light of state and federal income taxes, if we stop at 3,000 entries:
$600,000 amount generated from 3,000 entries at $200 each
-240,000 40% taxes
$360,000 amount left after taxes
By the time we pay the taxes and the expenses associated with the contest, we will have enough money to pay the mortgage with not a lot left over to buy a retirement house.
Let's look at the math, if we receive 5,000 entries:
$1,000,000 amount generated from 5,000 entries at $200 each
- 400,000 40% taxes
$ 600,000 amount left after taxes
We then will have enough money to pay the mortgage the bank holds on Rock Spring Farm, buy a retirement home, and contribute some money to each of our four grandsons' college funds.
We are plain folk with a mortgage and bills associated with living -- insurance, phone, electricity, transportation, food, medical, etc. We do not lead an extravagant life. As much as we would like to submit 25 essays to the judges today, doing so is not financially feasible.
We have been steadfast in our proclamation that this contest never has been about money. It truly is about passing along a legacy.
As soon as we began reading the essays, we realized that our essay contest was much more than a little essay contest. It began to take on a spiritual quality and quickly grew to something much greater. We realized that God was using Rock Spring Farm to answer someone's dream. We feel so blessed and so honored.
I have done everything humanly possible within my means to make this contest successful. In many ways, it is a success. Randy has accepted that the dream he and Margie had is coming to a conclusion, and it is time for our dream to take flight. That is a HUGE blessing!!! Many of you have written how the contest has changed your lives in positive ways. You cannot imagine how awesome that makes us feel; we are so happy for you!
However, we also know that God's time and our time are measured much differently, and God's plans and our plans don't always mesh precisely. This contest is in God's hands. If the course of this contest coincides with the hopes and dreams of this community, there will be great cheer and joyful noise. On the flip side, I hope that if the contest does not coincide with our hopes and dreams that we are strong enough and faithful enough to accept that God has bigger a plan for each of us!
Thank you for your prayers and your support!
