Claiming as a legal entity

Reply #9

mikeintexas — Tue, 13 Jan 2015 18:49:11 GMT

I agree and have always gone solo on my lottery pursuit.

I wrote about this not long after I first started participating in this forum, but after my pop retired, he started hanging out at a friend's used car lot along with 4-5 other retired men, playing dominoes and poker in a back room. They decided they'd create a lottery pool and each chipped in something like fifty bucks. They drew up an agreement giving each equal shares in any jackpot and they all signed and the car dealer notarized... [ More ]

Reply #8

PrisonerSix — Tue, 13 Jan 2015 03:53:42 GMT

We don't have a contract, but we've already agreed to the lump sum. I do give a copy of the tickets to each member, so we all know which numbers are ours'. In addition, the tickets I buy for the group are multidraw tickets which cover 4 drawings between paydays. My personal tickets are single draw purchased on different days at different stores, so there's no chance of confusion.

We've been playing for many years now and the best we've done is around $100 during one 2 week round, other tha... [ More ]

Reply #7

uprrman — Tue, 13 Jan 2015 00:26:08 GMT

would be nice to have happen 444444444444all

Reply #6

zinniagirl — Tue, 13 Jan 2015 00:19:50 GMT

good luck to you! Just make sur you have everyone in the group sign a contract stating how the group will claim the prize ie lump sum vs annuity, who will be the primary name,where the tickets will be purchased, how often an d by who....etc. Include a provision about personal tickets if someone should purchase a winner. Make sure everyone has a copy of the tickets. THen relax, purchase your own personal tickets at another location, at a different time with a receipt, to protect you from the grou... [ More ]

Reply #5

IPlayWeekly — Mon, 12 Jan 2015 16:37:39 GMT

I agree to much hassle

Reply #4

mypiemaster — Sat, 10 Jan 2015 11:43:01 GMT

Just buy your own tickets if you don't have the stomach for drama. Pools can be a lot of fun, if done right. It also can have a lot pitfalls, if done wrong.

Reply #3

Coin Toss — Sat, 10 Jan 2015 05:18:13 GMT

From the OP:

The group members must decide on one payment option; it is not possible for some group members to take the cash option and others to choose the annuity.

Any group that doesn't have this decided before hand is looking for trouble.

Reply #2

PrisonerSix — Sat, 10 Jan 2015 05:00:44 GMT

Interesting. The one thing I wonder about and can't seem to find an answer for anywhere is if in Part I of the form 5754, can an entity such as a LLC that has a taxpayer ID number be listed instead of an individual, then those receiving the prize and having to pay the taxes be listed in Part II.

IRS form 5754

I run a lottery club with 11 members and if we do hit the big one, we will consult professionals but for now, just curious.

Reply #1

noise-gate — Wed, 31 Dec 2014 04:43:03 GMT

California seems to have done the same thing PrisonerSix.

How Does a Player

Group Divide the

Tax Liability?

Group winners of Scratchers annuity

prizes, SuperLotto Plus jackpot, Mega

Millions jackpot or Powerball jackpot

prizes must choose the same payment

option, and may use the Multiple

Player Ownership Claim Form which

allows each group member (up to

100 members) to receive individual

payments from which their federal

taxes will be withheld.

Group... [ More ]

Claiming as a legal entity

PrisonerSix — Wed, 31 Dec 2014 04:23:10 GMT

The Louisiana Lottery has this on it's site about claiming a winning ticket as a legal entity(trust, LLC, etc.) I thought this was interesting so I thought I'd pass it on.

The prize on a winning lottery ticket may be split among a group of ticket owners; however only one prize check is issued. The prize check is issued to either one person or legal entity (partnership, trust, etc.). Each member of the group provides a completed IRS Form W-9 for tax reporting purposes at the time of the cla... [ More ]