Florida woman gives away $43 million Lotto jackpot

Feb 28, 2016, 2:04 pm (69 comments)

Florida Lottery

Florida Lottery officials said a Largo woman was the winner of a $43 million jackpot, and she said she's not keeping a penny of it.

Ruby Sorah, 90, matched all six winnings numbers in the February 17 Florida Lotto drawing.

Officials said Sorah chose to receive her winnings in a one-time, lump-sum payment of $31,042,330.

Though she wouldn't go on camera, Sorah told local media that she and her husband, also 90 years old, were giving the whole jackpot away to family and they have no plans to change their lives at all.

Neighbors, who said the couple is very low-key, are thrilled for them.

"It's God-sent. It's heart-warming," said Rick O'Callaghan, whose brother owns a house across the street. "It's great. They're the quietest, nicest, most reserved people you ever saw in your life. He only comes out to get the mail. Still mows his own lawn. Real, real simple people, got a real, real simple life."

O'Callaghan said, if he won the lottery, he's not sure he'd be able to give it all away.

"[I would] pay off some of my bills. Maybe try and buy a house or something like that," he said.

Other neighbors said they might do the same thing as the Sorahs.

"I think if I were in their situation, I would seriously thinking about doing the same thing. So God bless them. That's just super," a neighbor said.

Ruby Sorah purchased the winning ticket at a Winn-Dixie grocery store on Park Boulevard in Seminole. The store will receive $100,000 in commission for selling the ticket.

News story photo(Click to display full-size in gallery)

Fox 13, Lottery Post Staff

Comments

amber123

Lucky family members. 

dr65's avatardr65

She looks absolutely fabulous!

90!

She looks like a nice lady too. They probably were happy with their lives so far and thought

why change now....give it to the younger people to enjoy.

Raven62's avatarRaven62

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

savagegoose's avatarsavagegoose

Quote: Originally posted by Raven62 on Feb 28, 2016

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

was my 1st thoughts. maybe they dont  plan on  giving it straight away, but over time and make sure everyone gets a cut. I mean gove it to one or 2 people and you rely on them sharing it. theyre in no hurry nice iea, but i would keep a little something for my old age

mypiemaster's avatarmypiemaster

Maybe they are just pi$$ed off they didn't win it in their twenties or even sixties. I would be pi$$ed off too, for crying out loud.

music*'s avatarmusic*

Quote: Originally posted by Raven62 on Feb 28, 2016

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

 After the IRS gets 40% they will end up with $18.6 million. 

 The gift tax could also be 40% or higher if you give a person more than $14,000.00 per year.

music*'s avatarmusic*

 Ruby, Congratulations on winning and living that long. 90 years. 

 Here I am considering taking the 30-year annuity and you give me hope that I can live that long.

 Here is a common quote among senior citizens, "I did not expect to live this long."

dallascowboyfan's avatardallascowboyfan

Congratulations Ruby Thumbs Up

OneTrickpony's avatarOneTrickpony

Aw, that is so great!  It's nice when down to earth people win.

ohiopick3's avatarohiopick3

Congratulations to the family members. I hope I win big before I am 90? Or else I would be doing the same thing she did.

Groppo's avatarGroppo

Quote: Originally posted by ohiopick3 on Feb 28, 2016

Congratulations to the family members. I hope I win big before I am 90? Or else I would be doing the same thing she did.

It's a doggone shame the older Ms. didn't have some more years to enjoy this money.  She did the right thing, and you and I are on the same key as to what we'd do with it if we became her age by that time.  (and the way it looks, I hope just to live to 90.)

She has no needs now, whatsoever. It'll all be taken care of for her, and her husband.

NICE HIT GRANNY!

Groppo's avatarGroppo

Quote: Originally posted by OneTrickpony on Feb 28, 2016

Aw, that is so great!  It's nice when down to earth people win.

Yes, isn't that the doggone truth?

Groppo's avatarGroppo

Quote: Originally posted by mypiemaster on Feb 28, 2016

Maybe they are just pi$$ed off they didn't win it in their twenties or even sixties. I would be pi$$ed off too, for crying out loud.

Yes, My Pie Master, I agree 100%.

Groppo's avatarGroppo

Quote: Originally posted by amber123 on Feb 28, 2016

Lucky family members. 

Music* figures they'll end up with 18 million.

I just hope I get 1/18 as lucky as them, some day, after taxes.

Groppo's avatarGroppo

Quote: Originally posted by Raven62 on Feb 28, 2016

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

Even with 18.6 million (according to Music*'s calc.) left in liquid, it's hard for me to believe they're not going to give some of it away.

Even though Florida is a  "0% lotto tax" state, according to usamega.com, whoever claims it is going to pay 25% Federal tax, right off the bat.  Then, I don't know how the individual states calculate the lotto tax, if they are a state that will tax your lotto winnings.  Do they look at last year's returns? Who knows what would have been better?

But, they're going to have a hefty tax, either way, and I'm pretty confident with Music*'s calculation.

The Feds. get you, coming and going, it seems.

brees2012's avatarbrees2012

When ever , I win the lottery , I will share my winnings

with 10 people and donate to charities .

I will make sure all 11 of us live with in our means .

No Mansions , No Luxury vehicles like into the $100,000's ,

etcccc ..... I've many charities to give too.

Make the money last for Generations .

This isn't my entire plan there's much more !!!!

Tony Numbers's avatarTony Numbers

People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

Teddi's avatarTeddi

This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

LottoLucy's avatarLottoLucy

Quote: Originally posted by music* on Feb 28, 2016

 After the IRS gets 40% they will end up with $18.6 million. 

 The gift tax could also be 40% or higher if you give a person more than $14,000.00 per year.

That $14,000 is only the ANNUAL exclusion and both spouses can give that much away so really it is $28,000 per married couple. Then they have their Lifetime Exclusion which is $5,450,000 per person in 2016 or $10.9 million per couple they can give away. So while they can't give it all away they can give a good chunk of it away without incurring tax. That $5.45 million figure is for estate and gift tax so the estate might have to pay estate tax on anything they had left but in the mean time they can watch their family enjoy their good fortune while they are still living.

LottoLucy's avatarLottoLucy

Quote: Originally posted by Teddi on Feb 28, 2016

This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

I think their tax bill would "only" be about $3.2 million. They get about $18.8 after taxes, can exclude $10.9 million and the top gift tax rate is 40% on what is left. It is still crazy, crazy, crazy.

Then I was thinking....maybe she is crazy like a fox! You probably don't get to be 90 without learning a thing or two. So she tells the media that she is giving it all away to family so no one bothers her or asks her for anything. Has any one ever seen this so called family? Those could be models in the photo with her. Shocked

Ok, not really serious about that last bit but you never know. Smile

I really hope when she says she is giving it all away to family she means planned giving with the advice of a good attorney.  I hate to think of the IRS getting all that loot due to poor planning.

picktowin's avatarpicktowin

I hope the family appreciate it.

So many kids just let the old people sit alone and care about themselves.

I know as my mother was 95 and there is 6 kids and only  my sister and I cared about her.

The resthadno time but believe me when she was dying the others sure came around as they knew there was something there to get.

To make a long story short I am spending my money.

If there is some left they will get it.

As long as I can enjoy life I am going to.

Sure not going to sit in rocking chair wasting away so kids can have it.

My hubby and I worked for that money.

I think they should keep some as you never know what is in store in life and you can't rely on family all the time.

Some of you may think I am cold but been there a few times and am older myself

picktowin's avatarpicktowin

Taxes why should they worry what they have to pay.

They didn't have the money before so anything is better than nothing.

Besides it wasn't theirs to begin with

Grandma and Grandpa think twice.

myturn's avatarmyturn

Congratulations to the couple. They will be inundated with relatives visiting. The will also have to review security at their house, or move to try and restore some privacy.

State governments, that require winners to be publicly identified, really need to rethink that policy, before something dreadful happens.

noise-gate

Quote: Originally posted by Tony Numbers on Feb 28, 2016

People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

My thought exactly. So all this * time ( years perhaps) you have been reaching into your pocket, shelling out your own money hoping to win, and then come to the conclusion that it's best just giving the millions away? 

Suzy-Dittlenose

Quote: Originally posted by Tony Numbers on Feb 28, 2016

People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

Very good point.  Give the media disinformation and send them on a wild goose chase.  I'll have to keep that in mind when I win.....

LOL

CARBOB's avatarCARBOB

Hello Aunt Ruby, forgot you lived in Largo. Call me!!

Bleudog101

Quote: Originally posted by myturn on Feb 28, 2016

Congratulations to the couple. They will be inundated with relatives visiting. The will also have to review security at their house, or move to try and restore some privacy.

State governments, that require winners to be publicly identified, really need to rethink that policy, before something dreadful happens.

Agreed, however you and I both know as other LP members that folks have been robbed, killed over lottery winnings.

myturn's avatarmyturn

Quote: Originally posted by Bleudog101 on Feb 29, 2016

Agreed, however you and I both know as other LP members that folks have been robbed, killed over lottery winnings.

If the delightful couple were British, they could remain anonymous and the prize money would be tax-free.

OneTrickpony's avatarOneTrickpony

Quote: Originally posted by Teddi on Feb 28, 2016

This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

Yes, I hope they consult with a tax attorney and CPA before making a final decision.  I think giving people who are not used to having millions of dollars in one fell swoop could be detrimental.  But doling it out over many years is not only prudent, but a healthy legacy.

I myself have thought that if I ever won a huge jackpot and I couldn't keep my identity a secret, I would announce that I was giving all the money to charity.  That would hopefully deter some of the bombardment from flim flam artist, law suits and long-lost relatives. 

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).  I would still be wealthy beyond my wildest dreams, and perhaps on the Board of these charities to keep me busy and useful.  Just my thought.

schmuckatelly's avatarschmuckatelly

Quote: Originally posted by CARBOB on Feb 29, 2016

Hello Aunt Ruby, forgot you lived in Largo. Call me!!

Cousin Bob? I remember when we used to jump of the trampoline and into the pool at Aunt Ruby's house! 

 

Aunt Ruby, did you get my Christmas card this past Christmas?

 

LOL

music*'s avatarmusic*

Quote: Originally posted by LottoLucy on Feb 28, 2016

That $14,000 is only the ANNUAL exclusion and both spouses can give that much away so really it is $28,000 per married couple. Then they have their Lifetime Exclusion which is $5,450,000 per person in 2016 or $10.9 million per couple they can give away. So while they can't give it all away they can give a good chunk of it away without incurring tax. That $5.45 million figure is for estate and gift tax so the estate might have to pay estate tax on anything they had left but in the mean time they can watch their family enjoy their good fortune while they are still living.

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

CARBOB's avatarCARBOB

Quote: Originally posted by schmuckatelly on Feb 29, 2016

Cousin Bob? I remember when we used to jump of the trampoline and into the pool at Aunt Ruby's house! 

 

Aunt Ruby, did you get my Christmas card this past Christmas?

 

LOL

LOL

I remember! LOL

I only hope those real relatives appreciate, what she and her husband are doing!!

TheMeatman2005's avatarTheMeatman2005

Congratulations to the lucky couple and their family.

Gleno's avatarGleno

02/29/16     11:17 AM

Smart Senior to give her Jackpot to her family while she and her husband are both alive. Hopefully the family will handle it wisely.

Wink

faber98

Quote: Originally posted by Gleno on Feb 29, 2016

02/29/16     11:17 AM

Smart Senior to give her Jackpot to her family while she and her husband are both alive. Hopefully the family will handle it wisely.

Wink

it's really just a smokescreen to keep strangers from bothering them. smart move. probably are giving "most of it away" but not all of it. sure they are keeping a few bands of hundreds sealed in the wall of their house for a rainy day. this saying you are giving it all away ploy has been used before by people not wanting attention drawn to them and the constant barrage of requests for handouts which people lick their chops over the fact that they are old and easy prey. only drawback is if they need cash for some emergency (one never knows) and the most trusted relative that they give the most to refuse them. (unlikely but possible).

BuyLow's avatarBuyLow

She didn't say when she was giving it away.  Maybe she's going to put it in a trust to generate income for her family members and then the trust will pass to them once they pass away.

DELotteryPlyr

Quote: Originally posted by music* on Feb 28, 2016

 After the IRS gets 40% they will end up with $18.6 million. 

 The gift tax could also be 40% or higher if you give a person more than $14,000.00 per year.

Yea, this is where a trust would have worked better for them.  Put all the family members in the trust.

KY Floyd's avatarKY Floyd

"So all this * time ( years perhaps) you have been reaching into your pocket, shelling out your own money hoping to win, and then come to the conclusion that it's best just giving the millions away?  "

Maybe all this time they've been buying tickets hoping they'll win so that they could give a lot of money to their kids, or charity, or whatever.

"Yes, I hope they consult with a tax attorney and CPA before making a final decision."

That ship has already sailed. They're already 90, so it doesn't really make a big difference whether they give it away today or it goes to their heirs when they die. There's a chance that they've got a pre-existing agreement that the IRS will accept, but there's a good chance that the IRS is going to collect either estate taxes or gift taxes at some point in the future.

Nothing wrong with people that old playing the lottery, but it's a really good idea to make plans ahead of time. If they had (or have) an agreement about sharing or giving the tickets to their kids, then the money could go to the kids without incurring gift taxes, and the kids could give the parents annual gifts that are exempt from gift taxes. If the parents need an unusually large amount of money in a particular year the kids could still give it to them by using their lifetime exemption.

Teddi's avatarTeddi

Quote: Originally posted by LottoLucy on Feb 28, 2016

I think their tax bill would "only" be about $3.2 million. They get about $18.8 after taxes, can exclude $10.9 million and the top gift tax rate is 40% on what is left. It is still crazy, crazy, crazy.

Then I was thinking....maybe she is crazy like a fox! You probably don't get to be 90 without learning a thing or two. So she tells the media that she is giving it all away to family so no one bothers her or asks her for anything. Has any one ever seen this so called family? Those could be models in the photo with her. Shocked

Ok, not really serious about that last bit but you never know. Smile

I really hope when she says she is giving it all away to family she means planned giving with the advice of a good attorney.  I hate to think of the IRS getting all that loot due to poor planning.

I saw that someone did the calc and showed after taxes they would net $32M. which is what I based my own calculations on. But that is incorrect. After the entire 39.6%, they'd end up somewhere around the $26 million mark. That's a big difference. So take away their lifetime exclusion and we're looking at roughly $15 million they'd have to pay gift taxes on. Aren't gift taxes at 40%? If so, then they're throwing away $6 million. Still a big chunk of cash. 

But you're right about those elderly people being crazy like a fox. The ones that still have all their marbles are usually able to outmaneuver the geniuses of the younger generations. I really hope that's true in this case. 

My grandfather was the best at never telling a lie, but phrasing his words in a way he knew we'd interpret differently from the way he meant it.

Here's hoping this couple is the same way. They might very well be giving it all to the family, but maybe it'll be dispensed via a trust, over time, so no unnecessary taxes are levied on what's given out.

Teddi's avatarTeddi

Quote: Originally posted by picktowin on Feb 28, 2016

Taxes why should they worry what they have to pay.

They didn't have the money before so anything is better than nothing.

Besides it wasn't theirs to begin with

Grandma and Grandpa think twice.

Taxes why should they worry what they have to pay They didn't have the money before so anything is better than nothing.

Because it's money. I have to say, I've never understood when people say "it's more than they had before". Yes. But it's money. I know that psychologically people are more willing to spend money they are given and not earned, but again, it's still money. 

They're already going to give the government millions in taxes, why should they give millions more unnecessarily? Maybe instead of the money lasting 3 generations, it lasts 5. Or maybe that extra $6 million could be given to a children's hospital or cancer research lab. If you're going to give money away, make it a worthwhile cause. Why bother giving Uncle Sam more than the 39.6% just because you have more than before. I don't get that argument.

whiteballz's avatarwhiteballz

Quote: Originally posted by OneTrickpony on Feb 29, 2016

Yes, I hope they consult with a tax attorney and CPA before making a final decision.  I think giving people who are not used to having millions of dollars in one fell swoop could be detrimental.  But doling it out over many years is not only prudent, but a healthy legacy.

I myself have thought that if I ever won a huge jackpot and I couldn't keep my identity a secret, I would announce that I was giving all the money to charity.  That would hopefully deter some of the bombardment from flim flam artist, law suits and long-lost relatives. 

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).  I would still be wealthy beyond my wildest dreams, and perhaps on the Board of these charities to keep me busy and useful.  Just my thought.

"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.

zephbe's avatarzephbe

I love the fact that she was still playing at 90.  Gives me hope.  Congrats to her. Smile

Stack47

Quote: Originally posted by Raven62 on Feb 28, 2016

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

It doesn't look like they consulted with a lawyer.

LottoLucy's avatarLottoLucy

Quote: Originally posted by Teddi on Feb 29, 2016

I saw that someone did the calc and showed after taxes they would net $32M. which is what I based my own calculations on. But that is incorrect. After the entire 39.6%, they'd end up somewhere around the $26 million mark. That's a big difference. So take away their lifetime exclusion and we're looking at roughly $15 million they'd have to pay gift taxes on. Aren't gift taxes at 40%? If so, then they're throwing away $6 million. Still a big chunk of cash. 

But you're right about those elderly people being crazy like a fox. The ones that still have all their marbles are usually able to outmaneuver the geniuses of the younger generations. I really hope that's true in this case. 

My grandfather was the best at never telling a lie, but phrasing his words in a way he knew we'd interpret differently from the way he meant it.

Here's hoping this couple is the same way. They might very well be giving it all to the family, but maybe it'll be dispensed via a trust, over time, so no unnecessary taxes are levied on what's given out.

I think that $32 million figure mentioned was just someone rounding up the gross cash value of the $43 million dollar annuity jackpot.  They actually got $31,042,330.67 cash before taxes.

The jackpot winner has given me a gift: a new research project learning about Dynasty Trusts.  I'd love to be able to give whatever I haven't spent to future generations while giving the IRS as little as legally possible.

LottoLucy's avatarLottoLucy

Quote: Originally posted by music* on Feb 29, 2016

 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.

OneTrickpony's avatarOneTrickpony

Quote: Originally posted by whiteballz on Feb 29, 2016

"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 avatarmikeintexas

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.

Silvergirl7

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

whiteballz's avatarwhiteballz

Quote: Originally posted by mikeintexas on Feb 29, 2016

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 avatarLottoMetro

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

mikeintexas's avatarmikeintexas

Quote: Originally posted by whiteballz on Feb 29, 2016

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.

myturn's avatarmyturn

Quote: Originally posted by Silvergirl7 on Feb 29, 2016

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.

mypiemaster's avatarmypiemaster

Quote: Originally posted by myturn on Mar 1, 2016

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.

OneTrickpony's avatarOneTrickpony

Quote: Originally posted by mikeintexas on Feb 29, 2016

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 avatarrcbbuckeye

Quote: Originally posted by mikeintexas on Feb 29, 2016

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.

Bleudog101

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 avatarrcbbuckeye

Quote: Originally posted by Bleudog101 on Mar 1, 2016

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.

Bleudog101

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

lucky6025

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.

mypiemaster's avatarmypiemaster

Quote: Originally posted by lucky6025 on Mar 1, 2016

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.

The Government has no business taxing lottery winnings in the first place. Most countries around the world do not tax lottery winnings. Washington is bent on bending us  over and grabbing as much cash as they can and they don't even use that money, to maintain the crumbling infrastructure here at home.

music*'s avatarmusic*

Quote: Originally posted by Bleudog101 on Mar 1, 2016

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

 The IRS may be hiring debt collectors. They should receive the same treatment. "SCAM", "SCAM"

 The IRS has always told taxpayers that they do not call you on the phone. They use mail and have you call them.

Snowman

lucky6025

I'm not crazy about Government taking taxes on lottery, as long as it gets used for GOOD Cause...But some States, Mass. being one of them has ruling will only pay out to 1 winner. So if you are in a lottery pool or play with family members. 1 person collects the winnings and gets taxed 25% fed/ 5% state on that win, then when tax time comes around might get another 14.5% more taxes added on. Plus when he/she divides up the winnings to those that played with him. New taxes..

don't really know how this works out, does the collector of ticket have to pay taxes on money he owes these people and is this going to affect his gift tax amount (5.4) over lifetime. then people recieving the money do the have to claim this money also for tax purpose. Government plays games with the people knowing some or alot will pay way more than should have.

mikeintexas's avatarmikeintexas

Quote: Originally posted by OneTrickpony on Mar 1, 2016

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

Well, as has been mentioned before, there's the annual gift exemption max at 14 grand/28 for a married couple.  I'm single and have no children, so there's no one besides my nieces and nephews and their families to inherit my estate.  I know $14k isn't a HUGE amount, but I'm sure it would make life a little easier for whoever I gifted.  It's $1166/month tax free to them, or if they're working, it's $6.73/hr. extra f/ a 40 hr. week.   That could be a house payment and utilities (depending upon where they lived, of course), maybe even a car payment as well.  Whatever, it def. could pay some bills.    I believe I'd probably hang onto the $5.45 million lifetime estate exemption, at least for a while. 

You can also pay someone's tuition or medical bills w/out being taxed for the gift as long as you directly pay the school or health care provider.

xstreamgaming15's avatarxstreamgaming15

Congrats to 90 yr old Mrs. Sorah $43 million is a life changing lottery win it is nice to heard very generous winners give all their lotto winnings to charity. Although getting around $18 Mil after Uncle Sam gets his cut why not keep one million to herself. My mom tells me if she doesn't hit the jackpot she'd be happy winning only a million dollars.

Joepaul

I notice Florida wins more often than other state . twice in a row a big jackpot is won . I'm not wasting my time playing here in new York. I'm done playing this scam game. The lottery knows where the jackpot winning ticket going to sell. How I know that? I know that because of insider information. People shouldn't waste there time playing because they are never gonna win becahse the lktterlottery already made a deal with whomever they want to win the big jackpot in advance. If you notice, Florida and Tennessee and California are the state the lottery want to win. If you live in new York and other state the. You can forget about winning the jackpot because it is  scam me you never going to win the big jackpot. They let you win small prices.

LottoPools's avatarLottoPools

Quote: Originally posted by Joepaul on Mar 3, 2016

I notice Florida wins more often than other state . twice in a row a big jackpot is won . I'm not wasting my time playing here in new York. I'm done playing this scam game. The lottery knows where the jackpot winning ticket going to sell. How I know that? I know that because of insider information. People shouldn't waste there time playing because they are never gonna win becahse the lktterlottery already made a deal with whomever they want to win the big jackpot in advance. If you notice, Florida and Tennessee and California are the state the lottery want to win. If you live in new York and other state the. You can forget about winning the jackpot because it is  scam me you never going to win the big jackpot. They let you win small prices.

Umm, no.  You need to check the histories and see just how often the big games are won in New York, or at least the north east.

ronki

I hope I don't have to  B 90 to hit the big one Approve I'll B broke by then if I even make to 90

RedStang's avatarRedStang

Time for Grandma to update those Dentures.

Tucker Black's avatarTucker Black

This is why I don't bother playing PB or anything with gigantic prizes. The chance of winning is remote, and if you do win, the government takes another 50% on top of the 50% they already got in the original game, for a total of 75% (i.e., you get 50% of 50% = 25%). There is no way I am going to play a game with a 75% house edge. That's why I stick with low-prize high-probability games like pick 3/4 or scratch-offs.

End of comments
Subscribe to this news story