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POWERBALL CREATES WORLD'S FIRST BILLION-DOLLAR JACKPOT

Topic closed. 567 replies. Last post 11 months ago by AbsolutelyFun.

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Posted: January 11, 2016, 9:22 am - IP Logged

He's probably one of those people that believe if they cross the border to buy stuff in a no sales tax state and bring it back to their own they are home free even though you still owe sales taxes on it. Most people don't even have the smallest inclination as to how taxes work. Even the reciprocity agreements don't save you taxes. Just save you on double dips  say live state X work in state y. State X is 10% and state Y 5% and you have 100K in taxable income for easy sake. You pay state Y the 5K you owe them  then you pay State X the remaining 5K. The opposite living situation results in you paying state X 10K and State Y receiving 0 since you've covered what you would have owed state Y I'm paying state X.

Also to the other separate question, the cash option is better tax wise in the sense you know exactly what the tax rate is right now. You have no idea what taxes will be like in 2025, 2030, etc. what happens if they jack up rates and eliminate all deductions? What happens if they tax all non working income at a completely different higher rate. This the real advantage is already having money and plans in place (that can alter how money is invested, etc) vs waiting for money that you can't alter how it's handled until it's in your hands and after the tax is attached.

 

PS I'm not a tax lawyer, and this is not advice. Just letting people know it's not as simple as I'll just move and reduce my taxes. It doesn't work that way.

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    Posted: January 11, 2016, 9:25 am - IP Logged

    I think they need to tweak the matrix with Powerball just a wee bit, remove a couple of red balls to bring the odds down to about ~275 million or so.  Current odds are 292 million which is too hard.  Odds with MM are 259 million which is way too easy as evidenced by the recent winner from New York.  I think we are finding 1:275 million to be the sweet spot as far as odds go.

    Someone from Tennessee just won this with the current matrix, so I disagree , its winnable

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      Posted: January 11, 2016, 9:39 am - IP Logged

      Now. You could make a when is the income actually earned argument since it isn't your money until you actually claim the prize, but I believe people have tried that before and lost IIRC. Still if you do take that route. Do realize, we're talking probably several years of litigation with very high priced lawyers that maybe save you a net 20-30 million once fee is included with the chance of actually losing and owing both the tax and the lawyers and being out an extra 5-30 million depending on quality of the law firm, tax penalties, and how much they bill you.

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        Posted: January 11, 2016, 9:56 am - IP Logged

        Now. You could make a when is the income actually earned argument since it isn't your money until you actually claim the prize, but I believe people have tried that before and lost IIRC. Still if you do take that route. Do realize, we're talking probably several years of litigation with very high priced lawyers that maybe save you a net 20-30 million once fee is included with the chance of actually losing and owing both the tax and the lawyers and being out an extra 5-30 million depending on quality of the law firm, tax penalties, and how much they bill you.

        I think the reasoning is the money is yours once the balls are drawn and your ticket matches.

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          Posted: January 11, 2016, 10:30 am - IP Logged

          He's probably one of those people that believe if they cross the border to buy stuff in a no sales tax state and bring it back to their own they are home free even though you still owe sales taxes on it. Most people don't even have the smallest inclination as to how taxes work. Even the reciprocity agreements don't save you taxes. Just save you on double dips  say live state X work in state y. State X is 10% and state Y 5% and you have 100K in taxable income for easy sake. You pay state Y the 5K you owe them  then you pay State X the remaining 5K. The opposite living situation results in you paying state X 10K and State Y receiving 0 since you've covered what you would have owed state Y I'm paying state X.

          Also to the other separate question, the cash option is better tax wise in the sense you know exactly what the tax rate is right now. You have no idea what taxes will be like in 2025, 2030, etc. what happens if they jack up rates and eliminate all deductions? What happens if they tax all non working income at a completely different higher rate. This the real advantage is already having money and plans in place (that can alter how money is invested, etc) vs waiting for money that you can't alter how it's handled until it's in your hands and after the tax is attached.

           

          PS I'm not a tax lawyer, and this is not advice. Just letting people know it's not as simple as I'll just move and reduce my taxes. It doesn't work that way.

          Yep that's what I thought at first, "....it's not as simple as I'll just....." which is why I questioned it. Since it's an event that would only occur should said "He" has to win first then I am thinking his chances of testing the theory in his mind are 292 Million to 1 so chances are pretty good "He" will never get to test that theory.

           

          But I still say that if someone wants to give it a shot then knock yourself out because we live in a free society and should you make the wrong choice then you get to take full responsibility for your actions. 

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            Posted: January 11, 2016, 11:08 am - IP Logged

            Jackpot has not went up from $1.3 billion, is it possible sales are dropping?

            I have the feeling that if it's not won Wednesday night, a lot of players will just give up as it will seem that it's just not possible to win at all.

            I agree.  If it rolls Wednesday a lot of media and people are going to start asking is Powerball too hard to win. 

            I'd still get my normal 2 #s if it rolled again but I wouldn't buy more.  I have some extra tickets this round but I won't keep throwing money at an endless pit. 

             

            I already bought my MegaMillions #s for the month so I'd just keep playing that.

              TheMeatman2005's avatar - lightening
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              Posted: January 11, 2016, 11:09 am - IP Logged

              What were the odds of being no winner tonight? does anyone know?

              The odds of there being no winner in the next drawing are the same odds as there was in the last drawing. The odds of winning the jackpot are 1 in 292,201,338.

              The Meatman

              “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

              Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

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                Posted: January 11, 2016, 11:20 am - IP Logged

                The Wednesday jackpot was increased to $1.4 billion, with a cash value of $868 million!

                 

                Check the State Lottery Report Card
                What grade did your lottery earn?

                 

                Sign the Petition for True Lottery Drawings
                Help eliminate computerized drawings!

                  Arrowhead's avatar - underground
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                  Posted: January 11, 2016, 11:22 am - IP Logged

                  He's probably one of those people that believe if they cross the border to buy stuff in a no sales tax state and bring it back to their own they are home free even though you still owe sales taxes on it. Most people don't even have the smallest inclination as to how taxes work. Even the reciprocity agreements don't save you taxes. Just save you on double dips  say live state X work in state y. State X is 10% and state Y 5% and you have 100K in taxable income for easy sake. You pay state Y the 5K you owe them  then you pay State X the remaining 5K. The opposite living situation results in you paying state X 10K and State Y receiving 0 since you've covered what you would have owed state Y I'm paying state X.

                  Also to the other separate question, the cash option is better tax wise in the sense you know exactly what the tax rate is right now. You have no idea what taxes will be like in 2025, 2030, etc. what happens if they jack up rates and eliminate all deductions? What happens if they tax all non working income at a completely different higher rate. This the real advantage is already having money and plans in place (that can alter how money is invested, etc) vs waiting for money that you can't alter how it's handled until it's in your hands and after the tax is attached.

                   

                  PS I'm not a tax lawyer, and this is not advice. Just letting people know it's not as simple as I'll just move and reduce my taxes. It doesn't work that way.

                  The issue of future tax rates and their impact on your net return down the road is valid and I'm not knocking anyone's argument or knowledge/skills in this area.

                  But, in reality, with the numbers being what they are---and certain to climb--what difference does it really make?

                  Here in Ohio the current net cash payout is just over $572 million. With the annuity payments the first year is almost $14 million. Which by itself means my family and my children's future families will be set for life, barring the insane need (which we don't have) for 100 luxury vehicles and a dozen water-front palaces.

                  With stair-step yearly increases starting at about $500,000 and ending at year 30 at almost three million, I'm simply not caring that much what the future holds on the tax front.

                  For me the real headache would be dealing with an immediate payment of $572 million to wrap my head around and find professional help to manage it.

                  If there ends up being multiple winners of 4 or 5 sharing the prize that could adjust my thinking.

                  But for now, I'll take the annuity please.

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                    Posted: January 11, 2016, 11:23 am - IP Logged

                    The Wednesday jackpot was increased to $1.4 billion, with a cash value of $868 million!

                    Thanks Todd! Good luck to you all out there !

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                      Posted: January 11, 2016, 11:32 am - IP Logged

                      The Wednesday jackpot was increased to $1.4 billion, with a cash value of $868 million!

                      This is certainly on pace to reach $1 billion cash value.

                        Arrowhead's avatar - underground
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                        Posted: January 11, 2016, 11:34 am - IP Logged

                        With the just-announced increase, Ohio's first-year annuity payment is $14,961,126. Ends at year 30 at $61,582,026.

                        Not all that concerned with future tax rates.

                        Wink

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                          Posted: January 11, 2016, 11:38 am - IP Logged

                          It was just bumped to 1.4 B. Time for a new thread!

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                            Posted: January 11, 2016, 11:42 am - IP Logged

                            The Wednesday jackpot was increased to $1.4 billion, with a cash value of $868 million!

                            Amazed they're raising the estimate already. This jackpot may break the $1 billion cash value barrier too. Incredible!

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                              Posted: January 11, 2016, 11:43 am - IP Logged

                              Thank you Kardashian family for pouring your money bumping up this jackpot!Big Grin Santa

                                 
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