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Florida woman gives away $43 million Lotto jackpot

Topic closed. 69 replies. Last post 9 months ago by Tucker Black.

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LottoLucy's avatar - hereslucy header.jpg

United States
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August 14, 2012
171 Posts
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Posted: February 29, 2016, 8:34 pm - IP Logged

 LottoLucy, Thank You for your clarification and help. I will depend on my CPA when I win.

You're welcome.  I think getting professional advice when you win will probably pay for itself many times over.

Lotto Lucy

    OneTrickpony's avatar - thought

    United States
    Member #167657
    July 25, 2015
    70 Posts
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    Posted: February 29, 2016, 8:56 pm - IP Logged

    "Say I won $100 million.  They would chop $25 million in Federal taxes off the top, so I would divide the rest to several charities.  But, what people tend to forget is that I would only be paying taxes on the $25 million held by the IRS after all is said and done.  So $25 million taxed at 39.6% will be $9,900,000 in taxes and I will get back $15,100,000 (or there about). "

    Wait, are you saying if someone won a $100 million lump sum from the lottery, only $25 million is considered taxable income by the IRS? I'm not a tax expert but I don't think that's right. The IRS will take 39.6% from $100 million not 39.6% from $25 million.

    If someone thought they are only going to pay $9,900,000 in federal income tax after winning $100 million in the lottery, they are in for a BIG surprise.

    No, I'm saying that if you win $100 million, they only deduct 25% for Federal taxes (assuming you live in Florida with no State income or lottery tax).  You will still owe 14.6% when tax time rolls around for a total of 39.6%.   BUT if you give away all the money you had after they withhold the required 25%  Fed tax, the charitable contribution of $75 million is TAX DEDUCTIBLE from your winnings.  So as far as the IRS is concerned, your obligation for Fed taxes is on the $25 million they were 'holding' for you.  Which would make your tax bill: $25,000,000 X 39.6% = $9,900,000. 

      mikeintexas's avatar - tx avatar-1.gif
      Texas Panhandle
      United States
      Member #136843
      December 20, 2012
      1279 Posts
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      Posted: February 29, 2016, 9:14 pm - IP Logged

      From the IRS site: Charitable Contribution Deductions
       

      You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. Exempt Organizations Select Check uses deductibility status codes to identify these limitations.


      A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
       - George Orwell

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        New Member
        Marietta, Georgia
        United States
        Member #172377
        January 22, 2016
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        Posted: February 29, 2016, 9:20 pm - IP Logged

        Makes no sense to even play and then give it away. No sense at all.

          whiteballz's avatar - Lottery-015.jpg
          Nutley, New Jersey
          United States
          Member #131058
          August 1, 2012
          875 Posts
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          Posted: February 29, 2016, 10:05 pm - IP Logged

          From the IRS site: Charitable Contribution Deductions
           

          You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. Exempt Organizations Select Check uses deductibility status codes to identify these limitations.

          I saw someone talk about the Donald Pease limitation too. It is strange Pease limits deductions for charitable contributions but it has no limit for gambling loses.

           

          http://www.forbes.com/sites/greatspeculations/2013/01/09/pease-limitation-puts-a-lid-on-itemized-deductions-for-wealthy-folks/#9f9a996528a1

          .

            LottoMetro's avatar - Lottery-024.jpg
            Happyland
            United States
            Member #146344
            September 1, 2013
            1129 Posts
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            Posted: February 29, 2016, 10:50 pm - IP Logged

            Hey I got an email from Prince Nerubian who claims that he inherited some of Miss Sorah's winnings and wishes to share the wealth with me.........

            I think I can scrape up the $50,000 deposit he needs to process the transfer, what do you think, should I go for it?

            I am concerned TurboTax will be unable to complete my taxes for 2016 due to the digit limitations

            Perhaps I could get Mr. Nerubian to invest the funds into an annuity for me

            If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
            If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

            2016: -48.28% (13 tickets) ||
            P&L % = Total Win($)/Total Wager($) - 1

              mikeintexas's avatar - tx avatar-1.gif
              Texas Panhandle
              United States
              Member #136843
              December 20, 2012
              1279 Posts
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              Posted: February 29, 2016, 11:19 pm - IP Logged

              I saw someone talk about the Donald Pease limitation too. It is strange Pease limits deductions for charitable contributions but it has no limit for gambling loses.

               

              http://www.forbes.com/sites/greatspeculations/2013/01/09/pease-limitation-puts-a-lid-on-itemized-deductions-for-wealthy-folks/#9f9a996528a1

              I'd like to take a Pease on Congress.

                Bondi Junction
                Australia
                Member #57242
                December 24, 2007
                1102 Posts
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                Posted: March 1, 2016, 12:43 am - IP Logged

                Makes no sense to even play and then give it away. No sense at all.

                It makes perfect sense for the lady to play, not least because she gets enjoyment from playing. It will give the couple more financial security, I believe they will keep some of the prize money. I also believe they will donate some to charity. Relatives and friends may benefit, now or in a future will. It would be better for the couple, if they could retain their privacy and distribute the money at their own pace.

                We all get a lot out of lotteries!

                  mypiemaster's avatar - 2015021003pileofcash
                  JACKPOT HUNTER

                  United States
                  Member #141034
                  April 2, 2013
                  1408 Posts
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                  Posted: March 1, 2016, 6:55 am - IP Logged

                  It makes perfect sense for the lady to play, not least because she gets enjoyment from playing. It will give the couple more financial security, I believe they will keep some of the prize money. I also believe they will donate some to charity. Relatives and friends may benefit, now or in a future will. It would be better for the couple, if they could retain their privacy and distribute the money at their own pace.

                  Hopefully, they have very good loving kids, instead of those nutty kids that have visions of patricide/matricide dancing in their heads. Pray that they get to enjoy some of that money. They deserve it.

                  Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

                  Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

                    OneTrickpony's avatar - thought

                    United States
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                    July 25, 2015
                    70 Posts
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                    Posted: March 1, 2016, 6:58 am - IP Logged

                    From the IRS site: Charitable Contribution Deductions
                     

                    You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. Exempt Organizations Select Check uses deductibility status codes to identify these limitations.

                    Well, so much for that idea.  Guess I'll just have to keep all the money.

                      rcbbuckeye's avatar - Lottery-043.jpg
                      Texas
                      United States
                      Member #55889
                      October 23, 2007
                      5603 Posts
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                      Posted: March 1, 2016, 7:53 am - IP Logged

                      I'd like to take a Pease on Congress.

                      LOL.

                      Years ago when I lived in Ohio he was a congressman. He's a liberal Democrat who was always pushing for gun control and I happened to meet him at some kind of function. I cornered him and told him what I thought of his gun control. I don't think he liked it much.

                      CAN'T WIN IF YOU'RE NOT IN

                      A DOLLAR AND A DREAM (OR $2)

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                        Simpsonville
                        United States
                        Member #163189
                        January 22, 2015
                        675 Posts
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                        Posted: March 1, 2016, 8:19 am - IP Logged

                        Still waiting for the scam lottery winning phone call.  Got 'lucky' that several IRS scammers have called and once a computer virus scam phone call came in. 

                         

                        Next time a fake IRS call comes in I'll ask @ the end of the conversation what my taxpayer ID # is!!lol

                          rcbbuckeye's avatar - Lottery-043.jpg
                          Texas
                          United States
                          Member #55889
                          October 23, 2007
                          5603 Posts
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                          Posted: March 1, 2016, 8:25 am - IP Logged

                          Still waiting for the scam lottery winning phone call.  Got 'lucky' that several IRS scammers have called and once a computer virus scam phone call came in. 

                           

                          Next time a fake IRS call comes in I'll ask @ the end of the conversation what my taxpayer ID # is!!lol

                          LOL.

                          Some a-hole from upstate New York calls me for a week straight every couple months threatening me with prosecution if I don't call back.

                          CAN'T WIN IF YOU'RE NOT IN

                          A DOLLAR AND A DREAM (OR $2)

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                            Simpsonville
                            United States
                            Member #163189
                            January 22, 2015
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                            Posted: March 1, 2016, 8:50 am - IP Logged

                            Bet he has a strong accent.  He got pissed (same guy, different area codes) when I said it is an IRS regulation that you have to be proficient in English.  I made that up.  Another time told him this is not a DC area code.  I always call back to eff with them...he says 'see you in the courthouse'!  lol

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                              Framingham,Ma
                              United States
                              Member #87369
                              February 23, 2010
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                              Posted: March 1, 2016, 9:43 am - IP Logged

                              it gets so confusing as to taxes. what you owe and can avoid. Best bet is talk to several tax experts and then make a decision.I would talk to them write down what each said the go home and look it up on computer, just to make sure, what was said is true before making that decision. You are talking millions of dollars you might or might not owe or the person you are going to give it to. I would rather spend the time than just give it to Government, to which already took huge chunk in first place, now back looking to take alot more.