Why aren't lottery winnings taxed at CapG

Reply #2

codmander — Thu, 23 Mar 2006 14:05:49 GMT

lol dont give em any ideas

Reply #1

jim695 — Thu, 23 Mar 2006 12:58:16 GMT

Your initial lottery win is considered to be a prize under the tax code, just as though you had won a contest; the tax on your win is levied at the short-term rate, which is essentially the same as paying personal income tax (35%) in your new, higher bracket. However, once your money is properly invested, you will be able to take advantage of long-term capital gains benefits for your second and subsequent years. In order to qualify for the long-term capital gains rate, you must hold your inves... [ More ]

Why aren't lottery winnings taxed at CapG

Bradly_60 — Thu, 23 Mar 2006 11:13:58 GMT

I was just thinking of this. Why aren't lottery winnings taxed at the Capital Gains rate. I mean you are investing your money in hopes of a return just like you do in stocks and bonds so why isn't it taxed at the 15% rate? But no they call it income and you get taxed at the 35% tax braket. Anyone know the reason behind this?

Brad