EuroMillions and US Taxes

Reply #22

Chewie — Thu, 18 Aug 2005 18:17:26 GMT

My plan - exactly. Can't be sued if you own nothing. Including cell-phones, furnishings, travel. Everything you spend would be an expense account expenditure, reimburshed by the corporation. I would think you could follow the same pattern for friends you want to be rich; ala the CEO of Disney. Hire your friend and have their contract cover all expenses and provided corporation housing, cars, etc. All they would have to pay in employment tax on minimum wage (which would be zero). Heck, they coul... [ More ]

Reply #21

BaristaExpress — Thu, 18 Aug 2005 14:48:23 GMT

Rip you are correct about the money not being taxed as long as it doesn't come into the US. But who isn't going to try to spending some of it here in the US when they are a US citizen? I know I couldn't keep from doing it! So that's what makes those purchases taxable!Now If the off shore company buys a house for it's CEO and keeps the title in the company name and then places such house in a trust, the CEO can not be taxed on said purchase! All items have to be owned by the company/trust. I know... [ More ]

Reply #20

Chewie — Thu, 18 Aug 2005 13:58:09 GMT

I would tend to agree with you. However, knowing the concept of the IRS, who knows what they can do. When I first started working overseas (as a US contractor), everything I made was tax free, regardless of where I spent it. Then they changed the law to set a maximum exemption. Anything to that rages was tax free. Obviously, if I bought something in-country, then I paid a sales tax on it.I would think that is the way it goes for lotto winnings. You shouldn't have to hide the money, but I would... [ More ]

Reply #19

Rip Snorter — Thu, 18 Aug 2005 13:37:36 GMT

My understanding from the earlier posts is that it's not a question of 'hiding', nor of attempting to hide the winnings. It's a question of only the money that actually enters the US being taxed. If it doesn't enter the US it's outside US/IRS/State jurisdiction and there's no tax owed on it.Just my take on what's been said on the thread. Which might be my own befuddlement, or might be inaccuracy in some of the posts by other LP members. Or it might be true.I'll be reading the later posts to... [ More ]

Reply #18

Chewie — Thu, 18 Aug 2005 12:57:01 GMT

Its my understanding tha big business does it all the time. Look at all the off-shore american companies beating the tax man this very second! All you have to have is the money to pay the competent lawyers. Lawyers write laws so that lawyers can find clauses to beat the law.

Reply #17

dvdiva — Thu, 18 Aug 2005 04:14:36 GMT

Like the IRS wouldn't notice the first American to hit Euromillions. Good luck getting away with it if you hit.

Reply #16

danisiri — Thu, 18 Aug 2005 04:11:27 GMT

So, then the answer to my original posting is that tax is paid if the money is brought into the U.S. or is found out to exist by the IRS. If the money is not brought into the U.S. and is hidden from the IRS using an offshore company, then no taxes are incurred.This is interesting how this thread developed. Given the weakness of the dollar, keeping the money offshore makes sense. Though, the answer is not exactly what I was looking for given the deception involved.Besides, playing EuroMillions... [ More ]

Reply #15

BaristaExpress — Wed, 17 Aug 2005 17:12:33 GMT

Just remember it can start as a US corp and be moved off shore! This only works for winning US based lotteries. Once the corp is off shore claim the ticket in the corps name to save the money that you would have paid in taxes to the IRS and the states that do tax the lottery winnings. But it is best to get an off shelf corp that's off shore already, than it is to move one from the US to off shore

Reply #14

Chewie — Wed, 17 Aug 2005 16:42:56 GMT

Good answer. Will put that one in the I won the lottery folder for reference. I keep a folder, so that when my day comes, I can review all I have heard, and refresh the knowledge base. No way can I become a multi-millionaire and remember all this stuff.

Reply #13

Rip Snorter — Wed, 17 Aug 2005 16:36:25 GMT

Good info..... I hope all the future Euro Millions jackpot winners who are US citizens (you know who you are) are taking careful notes of this thread.Surprising how a good thread can just spring up out of nowhere and come to full bloom in an instant. Or a day.Thanks Barista.Jack

Reply #12

BaristaExpress — Wed, 17 Aug 2005 16:28:06 GMT

Rip not at all. They are sold everyday of the week by Incorporation Service companies throughout the US and overseas, they are legally established entities at a reasonable prices. Now lets say your wanting a US shelf corp of 2 yrs. (est. 2003) it would cost around $2500.00 the extra cost is in the name changing and that runs anywhere from 300.00 - 500.00 depending on the incorportion service who does it and what state it's done in! Nevada is the best place to do this with a US based shelf corp a... [ More ]

Reply #11

Rip Snorter — Wed, 17 Aug 2005 15:38:00 GMT

Interesting.Might be a person in the market for an off shore (shelf) corp could find a seasoned one for sale at a righteous price, however. Bound to be lots of them lying around unused while the owners sit out their sentences in Leavenworth or somewhere.Jack

Reply #10

BaristaExpress — Wed, 17 Aug 2005 15:21:07 GMT

Say Rip, you are on the right track there buddy! But you have to be an off shore corp before claiming the winning ticket in the corps name to be exempt from IRS or state taxes as an off shore corp. But one more catch here, the IRS will check to see how long the corp has been a corp, so it would be best to get an seasoned corp (a shelf corp as they are called) of at least of 3 yrs old and do an name change to the off shore shelf corp. or not

Reply #9

Chewie — Wed, 17 Aug 2005 15:19:15 GMT

I worked across the street from the Bank Of America for a long time. I never saw any Royles Royce parked out front, indicating some rich guy was using the ATM. I am sure some legal/financial adviser would know exactly where the best place, with the best profit, would be. I would think a Swiss Bank Account would be good for spending cash (will 7-11 take a check from a Swiss Bank?).

Reply #8

Chewie — Wed, 17 Aug 2005 15:16:00 GMT

Those AmEx TC cards are severly limited on the max value. From the web site:HOW TO PURCHASE THE TRAVELERS CHEQUE CARDQuantities AmountsYour Card must start with a minimum load of $300 and a maximum of $2,750, which is also the maximum you may load on your Card(s) during any 14-day period. You can order up to 4 Cards at a time. Their total combined value cannot exceed $2,750. There is a $14.95 issuance fee per Card. You may purchase the Card in US Dollars ($), Euros ( ) or Pounds Sterling ( ).P... [ More ]

Reply #7

BaristaExpress — Wed, 17 Aug 2005 15:08:55 GMT

Swiss bank account! No, No, NO! The swiss now collaborate with the IRS when asked about US clients and their accounts! All the IRS has to say is that they think the money is from illicit activies, such as drug sales or even now terriorist fund raising! Think about it, many countries now work with the US when before they never did and I wouldn't put it past our Goverment to use false statements to get the info they wished to obtain on anyone, anywhere in the world

Reply #6

Rip Snorter — Wed, 17 Aug 2005 15:07:18 GMT

Intriguing possibilities to all this.All the World Bank and money laundering meddling has changed a lot of things over the past few years.My impression is that Swiss banks are subject to the scrutiny of the US nowadays, as are some of the other offshore institutions. But Costa Rica might still be an exception. Probably some other places if a person checked around.Likely as not a person could become a US Representive of some unheard of Corporation in the Caymens or Costa Rica, keep his salary d... [ More ]

Reply #5

BaristaExpress — Wed, 17 Aug 2005 14:55:01 GMT

Why bring the winnings to the US for? Why not just leave it there in a bank? It's not like your not going to go on vacation in the near future! Why not just spend spend spend while on vacation somewhere in Europe! I'd used the new American Express travelers card for my spending habits while in Europe or anywhere for that fact, but not in the US though! Remember it's not cash, it's just like your debit card but not linked to a checking account in any country! It's better than the paper traverlers... [ More ]

Reply #4

acronym007 — Wed, 17 Aug 2005 14:45:22 GMT

I have to agree with Todd, a swiss bank account would be mighty enticing.

Reply #3

Todd — Wed, 17 Aug 2005 14:34:13 GMT

You would only have to pay taxes on what you brought into the country, which one of the reasons that winning a European lottery (for an American) is so awesome.

Reply #2

CalifDude — Wed, 17 Aug 2005 14:31:23 GMT

Don't forget Nevada! No income tax.

Reply #1

Rip Snorter — Wed, 17 Aug 2005 14:23:37 GMT

Unless they've changes the laws recently I think you're correct on the tax part. The difference is that the taxes wouldn't be confiscated before you recieved payment. But you'd still have to pay them by April 15, the following year, if you were still a US citizen living within the reach of the long arm of the IRS.As for State taxes, you'd owe them, also, unless you had an address in Texas or WA to live in while you collected your winnings.Jack

EuroMillions and US Taxes

danisiri — Wed, 17 Aug 2005 06:24:16 GMT

It is my understanding that EuroMillions does not take tax out of the jackpot prize. My question is do the US government and/or state governments tax the winnings if a US citizen wins the jackpot and brings the money into the U.S. (e.g., invests it in U.S. banks, etc.)?I looked this up on the internet and the best I could find was that all foreign income is considered taxable by the government if the person is a U.S. citizen. The only way that the income is exempt is if the person is physica... [ More ]