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NJ family of 8 claims $429.6 million Powerball lottery jackpot

Topic closed. 117 replies. Last post 8 months ago by OldSchoolPa.

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JoeBigLotto's avatar - Lottery-049.jpg
melbourne , florida
United States
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188 Posts
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Posted: May 14, 2016, 9:04 am - IP Logged

If you all want to know what I think well I think the guy in the family picked all the right numbers currently because we men are good in maths and all thoes women where already shopping at the mall and going back to pickup all there layaways that's what women do best spend our money. :)

    mjwinsmith's avatar - moon

    United States
    Member #391
    June 8, 2002
    16276 Posts
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    Posted: May 14, 2016, 9:10 am - IP Logged

    You living way in the past. That applied to the ancient Jews before their Great City fell to the Roman armies- another thing the name Smith is not Jewish... Just saying!

    **When was the last time you brought a goat to your Church as a sacrificial offering?

    I Agree!

    "Don't be a Dummy, Make 'Dat Money"

    Mjwinsmith's Blog Page:   http://blogs.lotterypost.com/mjwinsmith/

    "How to Play My Pick-4 System": https://www.lotterypost.com/thread/306450

      Avatar
      New Member

      United States
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      May 13, 2016
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      Posted: May 14, 2016, 9:35 am - IP Logged

      Thanks to golpher1960, zephbe & albeone for the insights. I guess the key phrase in the IRS documents is "When lottery prize splits are allowed by the state...". 

       

      The IRS is the big loser when these splits are allowed - especially in the long term - due to the Estate Tax (which by the way is the biggest con ever perpetrated on the American citizens). Here is why: in the short term, the IRS will get their 36% or whatever the highest tax bracket is from the winnings (whether its an individual or from several winners). But if we use the example of this family, they will each receive $25mil. The Estate Tax exemption is $10mil per family ($5mil per individual). In other words, each family will be able to pass on tax-free to their children $10mil. Anything above that amount is subject to the Estate Tax. So having 8 families share the winnings, the IRS will see up to $80mil. get passed on tax free! With a single winner, they too are allowed only $10mil is tax exemption so the IRS would be able to tax the remaining $190mil.  The Federal Estate Tax is 40% for amounts of $1mil and above.

       

      Don't get me wrong, there should be NO ESTATE TAX (I would make an exception for IRA accounts and other instruments passed on to children that have had a tax exemption during the lifetime of the deceased). Lottery winning are a perfect example of why the Estate Tax is extremely unfair and a clear case of double taxation! As an example, you win $100mil cash jackpot. After Federal and State taxes you end up with approx. $60mil. (I live in Illinois so that would be my case. Obviously, some states have no taxes and rates vary). If I put my $60mil. in a bank and fly off to Vegas with the wife and our plane crashes, would my children get the $60mil? No. They would get $10mil tax free but the other $50mil would be taxed at 40% (ignoring State Estate Tax for now). So my kids would end up with a $20mil. tax bill all because I died!!  So I win $100mil.; pay my taxes and end up with $60mil.; die and my kids now have $40mil.   If anybody sees any fairness in this you have me stumped.

       

      Anyway, I don't believe the story for this lucky family is as cut and dry as its being presented. If the State of New jersey does indeed allow these types of lottery splits, that is wonderful news for them. I truly hope they get great legal counsel that keeps them out of trouble. Specifically, explaining the $5mil per individual lifetime rule for Gifting as well as the annual gift tax rules which I believe are at $14,000 per year at the moment (you can give any individual up to $14,000 per year without either party having to report the gift as income. Anything above that goes against the $5mil. gift tax).

        Bondi Junction
        Australia
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        Posted: May 14, 2016, 10:07 am - IP Logged

        Another Stroke of Luck: Having a Surname of Smith!

        Most Common Surnames in the United States 1990 Census:

        Smith
        Johnson
        Williams
        Jones

         You mean Obama is not on the list?

        We all get a lot out of lotteries!

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          Simpsonville
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          January 22, 2015
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          Posted: May 14, 2016, 11:18 am - IP Logged

           You mean Obama is not on the list?

          Jersey is on a roll.  MM website does not specify if the 5 number used Megaplier or not, but someone in NJ won @ least $1 million.  Hopefully they were one of the three that used Megaplier to get $4 million....Todd, was it you this time?

            MzDuffleBaglady's avatar - Lottery-018.jpg

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            Posted: May 14, 2016, 11:20 am - IP Logged

            PartyHappy spending.

             

            The Struggle is real!

              marcie's avatar - Lottery-011.jpg
              Ohio
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              February 21, 2007
              34533 Posts
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              Posted: May 14, 2016, 11:46 am - IP Logged

              That is so nice I am happy for the Family I read somewhere that the Lady that played the Mega Million

              followed her own Intution and the number's popped  in her head?  And she rarley ever gamble.

              http://www.lotterypost.com/thread/233413    Sun Smiley Popular numbers

              12345

              67890

              Use Mirror #'s Use prs. with your  Key* numbers the most Vivid thing in your dream go up or down on #'s.  Flip  6=9 `9=6  Bullseyes  0 or 1 for Pick 4 and the P. 5  Play the other part of doubles.  Do the Whole nine yards for a P. 4* P. 5*  or 0 thur 9  for P. 4  P. 5 from my dreams or hunches good Luck.. Write your Dreams down Play for 3 days.  Good Luck All.

                mypiemaster's avatar - 2015021003pileofcash
                JACKPOT HUNTER

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                Posted: May 14, 2016, 12:20 pm - IP Logged

                This is so sweet. They are all multimillionaires. Time to spend some serious cash.  Thumbs Up

                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****

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                  Simpsonville
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                  Posted: May 14, 2016, 12:29 pm - IP Logged

                  Maybe she should go to Borgata or Caesars casino down the road from where they live!

                    mypiemaster's avatar - 2015021003pileofcash
                    JACKPOT HUNTER

                    United States
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                    Posted: May 14, 2016, 12:47 pm - IP Logged

                    The first time I heard the jackpot was sold in NJ, I thought maybe Todd the Chief was the winner. Imagine how appropriate and befitting that would have been.

                    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****

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                      Simpsonville
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                      Posted: May 14, 2016, 12:58 pm - IP Logged

                      The first time I heard the jackpot was sold in NJ, I thought maybe Todd the Chief was the winner. Imagine how appropriate and befitting that would have been.

                      Todd definitely deserves to work with all the hard work he does on LP!

                        Kingofearth's avatar - Kinnak
                        Upstate NY
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                        May 5, 2016
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                        Posted: May 14, 2016, 1:35 pm - IP Logged

                        They say they plan to tithe to their church. Does that mean that they plan to go buy a farm and donate a tithe of the crops and every tenth sheep, goat and cow that passes under the rod? Read your bible folks!

                        I Agree!

                          Kingofearth's avatar - Kinnak
                          Upstate NY
                          United States
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                          May 5, 2016
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                          Posted: May 14, 2016, 1:39 pm - IP Logged

                          You living way in the past. That applied to the ancient Jews before their Great City fell to the Roman armies- another thing the name Smith is not Jewish... Just saying!

                          **When was the last time you brought a goat to your Church as a sacrificial offering?

                          It's common in Africa and Asia to this day to have animal sacrifices in churches. The ancient fairy tale books like the bible or the Quran are just that, fairy tale books that should have been destroyed centuries ago.

                            Kingofearth's avatar - Kinnak
                            Upstate NY
                            United States
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                            May 5, 2016
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                            Posted: May 14, 2016, 1:43 pm - IP Logged

                            Thanks to golpher1960, zephbe & albeone for the insights. I guess the key phrase in the IRS documents is "When lottery prize splits are allowed by the state...". 

                             

                            The IRS is the big loser when these splits are allowed - especially in the long term - due to the Estate Tax (which by the way is the biggest con ever perpetrated on the American citizens). Here is why: in the short term, the IRS will get their 36% or whatever the highest tax bracket is from the winnings (whether its an individual or from several winners). But if we use the example of this family, they will each receive $25mil. The Estate Tax exemption is $10mil per family ($5mil per individual). In other words, each family will be able to pass on tax-free to their children $10mil. Anything above that amount is subject to the Estate Tax. So having 8 families share the winnings, the IRS will see up to $80mil. get passed on tax free! With a single winner, they too are allowed only $10mil is tax exemption so the IRS would be able to tax the remaining $190mil.  The Federal Estate Tax is 40% for amounts of $1mil and above.

                             

                            Don't get me wrong, there should be NO ESTATE TAX (I would make an exception for IRA accounts and other instruments passed on to children that have had a tax exemption during the lifetime of the deceased). Lottery winning are a perfect example of why the Estate Tax is extremely unfair and a clear case of double taxation! As an example, you win $100mil cash jackpot. After Federal and State taxes you end up with approx. $60mil. (I live in Illinois so that would be my case. Obviously, some states have no taxes and rates vary). If I put my $60mil. in a bank and fly off to Vegas with the wife and our plane crashes, would my children get the $60mil? No. They would get $10mil tax free but the other $50mil would be taxed at 40% (ignoring State Estate Tax for now). So my kids would end up with a $20mil. tax bill all because I died!!  So I win $100mil.; pay my taxes and end up with $60mil.; die and my kids now have $40mil.   If anybody sees any fairness in this you have me stumped.

                             

                            Anyway, I don't believe the story for this lucky family is as cut and dry as its being presented. If the State of New jersey does indeed allow these types of lottery splits, that is wonderful news for them. I truly hope they get great legal counsel that keeps them out of trouble. Specifically, explaining the $5mil per individual lifetime rule for Gifting as well as the annual gift tax rules which I believe are at $14,000 per year at the moment (you can give any individual up to $14,000 per year without either party having to report the gift as income. Anything above that goes against the $5mil. gift tax).

                            Inherited wealth breeds crazy and stupid <snip>s like Trump. The Estate tax needs to be much much higher on the extremely wealthy. 

                            This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

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                              NY
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                              Posted: May 14, 2016, 2:01 pm - IP Logged

                              This isn't the first time winnings were shared with family or friends.  That's what lawyers  and financial advisors are for.

                              "This isn't the first time winnings were shared with family or friends."

                              This also wouldn't be the first time that a winner shared with family and then paid gift taxes to the IRS. You can read about one particular case here: http://www.journalofaccountancy.com/issues/2012/jul/lottery-win.html and some general info here: http://www.sofloridaestateplanning.com/2012/03/articles/income-tax/planning-on-sharing-your-lottery-winnings-with-your-family-write-it-down-now/

                              "I guess the key phrase in the IRS documents is "When lottery prize splits are allowed by the state...". "

                              Taxes are based on IRS regulations, not what the lottery "allows". If you win a lottery prize the money is yours and the lottery has absolutely no say in who you share it with. The lottery just gets to make the rules on how they pay the prize.  Since there's only one ticket the lottery is entitled to make a single payment to the entity that owns the ticket, or they can write 100 separate checks to each individual member of a pool, depending on what their rules are.

                              The IRS treatment of the winnings will be about who actually won the prize and what pre-existing agreements were in place. If a bunch of coworkers share a lottery prize the IRS probably isn't going to be very aggressive about looking for proof that there was a mutual agreement to share the prize before it was won, because very few people would give the majority of the prize to their coworkers simply because they were feeling generous. Families are a completely different matter, because people are often inclined to share purely out of generosity that is a result of the familial relationship. In other words,  people often give gifts to family members. That means that the IRS is likely to demand proof that their was a legitimate pre-existing agreement to share any winnings. If there isn't proof the IRS may treat the winnings as income to a single person, and view the shares as gifts.

                              In that case, one person won a cash prize of about $284 million, and the IRS is going to expect them to pay income taxes of about $112 million. They'd also treat the $248 million that was given to the children as gifts, so after the $5.3  million lifetime exemption that's almost $243 million that could be taxed at 40%, so there's another $97 million the IRS may be asking for. That would be a total tax bill of $209 million, leaving them with about $75 million, or about $9 million each.