Uncle Sam Wins Your Lottery

Reply #5

sirbrad — Mon, 28 Nov 2005 00:42:39 GMT

Uncle Sam has always been the worst crook known to man.

Reply #4

Badger — Sun, 27 Nov 2005 22:57:23 GMT

What gripes me is that the money used to buy the tickets has already been taxed by all levels of govt before it was spent on the ticket. Then, no matter who wins, the govt has done zero work for any share of it. Yet they take half of it away again for their coffers, simply because they can get away with it. Then they spend it on crap....never ask if they can take it, never ask if you agree that spending it on such things as the reproduction cycle of the tse-tse fly is a good way to burn up a

Reply #3

lchoro — Sun, 27 Nov 2005 21:36:02 GMT

She could've reported it as short-term capital gain with a basis of 0, which will be taxed the same as ordinary income. She had already received 3 or 4 annual payments, and then she received a financial settlement from this firm for the present value of the remaining payments less some fee to the firm. It sounds like a fair deal with the funding firm..she received $ 7.1M when the remaining annuity was probably around $ 15 M to $ 16 M.

Reply #2

bellyache — Sun, 27 Nov 2005 21:29:24 GMT

Well if someone chooses annuity and then they change their mind and decide that they want the money in a lump sum and they go to one of those companies to get it, then I don't feel a bit sorry for them. They had the choice to get the lump sum to begin with and wouldn't have lost so much money doing so at a later time. People really need to do their research when choosing lump or cash.

Reply #1

delS — Sun, 27 Nov 2005 21:27:30 GMT

Below is the article I reference. Uncle Sam Wins Your LotteryBy Albert B. CrenshawSunday, November 27, 2005; Page F02 Attention, lottery players: If you win a nice big prize, opt to take it as a stream of payments and then change your mind and wish you had taken it as a lump sum, don't expect any special tax benefits if you sell your annuity for immediate cash.Over and over in the past few years -- and especially since capital gains tax rates were lowered in 2001 -- lottery winners have sold the... [ More ]

Uncle Sam Wins Your Lottery

delS — Sun, 27 Nov 2005 21:14:34 GMT

This topic is of interest to all Lottery Post members, whether you are for cash (lump sum) or Annuity. Todays Washington Post (go to www.washingtonpost.com) in the business section under the Cash Flow Subject/title. Several issues come up in this article, one is the number of winners who opt for annuity and then in a year or two sell their annual payments to a rip off but legal entity who gets a big chunk of their winnings. The woman example won $17.5 in 26 payments. She sold her annuity pay... [ More ]