Pay/Hire Close Friends after Jackpot

Reply #6

KY Floyd — Thu, 07 Dec 2006 02:40:52 GMT

The IRS won't necessarily believe that somebody else owned a share of the ticket before the drawing took place. Especially if you try to split it such that everybody doesn't have equal shares you may have problems. If somebody wants to give $100,000 to somebody it will probbaly be better to make it a gift and paty the taxes rather than hire tham as an employee. If you pay them $100,000 you'd each pay social security tax, and the recipient would have an additional $100,00 in taxable income. De... [ More ]

Reply #5

bambini — Wed, 06 Dec 2006 23:36:20 GMT

Wow! 300 thousand dollars a year, can I be your friend

Reply #4

RJOh — Wed, 06 Dec 2006 23:04:09 GMT

If they are that close, include them for a share of the winnings when you claim it. That way they will get their money from the state and pay taxes on it too. Also they'll will know thay can depend on the check in the mail even if your relationship with them go south later on.

Reply #3

CA LotteryGuy — Wed, 06 Dec 2006 03:01:40 GMT

stavros....regarding why anyone would need to know that you give in gifts, it is the law. The tax code states that the person giving a gift, the giftor, must report any gifts to an individual over $12,000 in a single year on their tax return. So as far as anyone knowing, the IRS wants to know and will tax the giftor.

Reply #2

Just6ntlc — Tue, 05 Dec 2006 23:45:58 GMT

If I win a jackpot, I first pay the taxes, then give out money to friends if I choose to.

Reply #1

stavros — Tue, 05 Dec 2006 22:20:04 GMT

Well, if you hired them, you would both be liable for taxes on the salary. Why would anyone need to know that you gave them a gift

Pay/Hire Close Friends after Jackpot

erobinson32 — Tue, 05 Dec 2006 21:40:10 GMT

Say you won a huge jackpot and wanted to help out your closest friends. Not a 1 time payment, but maybe give them $100,000 a year for life. Say you were going to do this for 3 friends, so $300,000/yr.

Is there a way to do this without being hit with HUGE 'gift taxes' from the government? Could you essentially 'hire' them like an employee and pay them for doing nothing? What would be the best way to solve this problem?

P.S. I'm not interested in giving them $12,000 or $13,000/year... [ More ]