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Ottawa barber, client share $32M lottery win

Topic closed. 33 replies. Last post 8 years ago by amininflorida.

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time*treat's avatar - radar

United States
Member #13130
March 30, 2005
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Posted: July 11, 2008, 1:28 pm - IP Logged

where can i confirm this? i always thought it was $10K and that they had to pay but your deal is much sweeter!! Dance

No place better for confirmation than ...

http://www.irs.gov/newsroom/article/0,,id=107815,00.html

Just remember, tax law changes and there will be some BIG "change"s in 2010.

In neo-conned Amerika, bank robs you.
Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

    justxploring's avatar - villiarna
    Wandering Aimlessly
    United States
    Member #25360
    November 5, 2005
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    Posted: July 11, 2008, 1:36 pm - IP Logged

    where can i confirm this? i always thought it was $10K and that they had to pay but your deal is much sweeter!! Dance

    Hi, Sandra.  I really liked you in Tammy.  Smiley

    There are many sources

    (1)  Search the LP archives for threads about Gift Tax. 

    (2)  Google the 2 words Gift and Tax.

    (3)  Go to the IRS official web site and search for info on Gift Tax

    It's not that I'm right or wrong - just reporting what the IRS dictates.  If you've seen articles that say it is $10,000 then they are old.  It used to be $10,000 with a lifetime exemption of $600,000 but it's been increased.  Maybe it will increase in 2009 or be repealed altogether in a couple of years.  Not that I like any taxation, but gift & estate tax is just plain wrong IMO.   The government is saying "Okay, you've done well and want to pass along your wealth to your children.  We don't want it to be easy for them, so we're going to impose a big tax."   

    In any case, unless there is another arrangement, the recipient never has to claim the gift, unless you are talking about income produced from the gift.  Once the money or property is transferred, you would need to claim any interest or income.  The same goes for estate tax.  When someone dies, the taxes are paid by the Trust before the distribution of wealth.  Someone can leave you 4 houses or land valued at $1M and, as long as the deceased's total estate is less than $2 million, there are no taxes due on the gift itself.  However, once you start collecting rent or you sell them for a profit, you would have to pay taxes.  As I've said before, I'm not a CPA or an attorney, but I am familiar with some of these matters.  I've also learned a lot on Lottery Post!  LOL  Of course, whenever this type of wealth is being handled, it is always best to consult with a private banker & attorney who specializes in wealth management.

    Regarding the comment I made about paying people for services, we've probably all known weathy people who started businesses and hired their relatives, but just never thought about it when discussing the lottery.  I knew a developer who tried to help a woman he was dating.  She began working in his office and he paid her $50,000 plus a company car.  She basically answered the phones, took messages & typed letters.  Doesn't sound like a huge amount of money (hey, I'll take it!) but this was back in the mid 1980s.  When his business started to slow down, he told her he had to lower her salary.  She quit and filed a lawsuit against him.  As the popular quote goes "No good deed goes unpunished."

      justxploring's avatar - villiarna
      Wandering Aimlessly
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      Posted: July 11, 2008, 1:46 pm - IP Logged

      Hi, time*treat.  I was typing when you posted.  Yes, I wonder what will happen after 2010.   It sounds a bit eerie, but I said to an elderly neighbor not long ago when joking about his money & how he didn't want the government to tax his children .. "Just plan to die in 2010."  He had a heart attack & died in April. 

      BTW, I thought this just impacted estate tax, not gift tax.   I agree that the IRS is the best place to learn about any tax law, but not to find out how to avoid paying tax, even if you want to do it legally.  I've called the IRS a couple of times in the past when I had a question.  The people were very nice & basically just told me what form to use and what I could claim or not claim, but I never had anyone say to me "oh, there's a great loophole a few people have used." 

       Jester

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        Tampa,FL
        United States
        Member #59342
        March 13, 2008
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        Posted: August 2, 2008, 11:49 am - IP Logged

        This is a very sweet story. There is not greed involved.  One splurges with $3 dollars and then collets the $1.50 after he realized it was a winning ticket..  what shocked me actually was the 35 relatives!!!  I don't know what the taxes are in Ontario but if is cash value that about 8 million before taxes it could be $5 million after taxes which is nice. But geez 35 relatives if they all got 10k each thats an average of 175k for each lotto winner.  I only have 3 peple to tell when i when=Mom,Dad & brother.  I am not even sure I would do a limo ride but then again i will collect it ina blind trust.  I know which law firm and "boutique" financials services company I will be using....I have nt narrowy down which school I will go to find a butler tho.  (can you tell I am single with no kids?)

        WHAT ARE THE TAXES IN CANADA.....?  I AM CANADIAN  THERE ARE NO TAXES !

         

          Imagine that huh? WOW