Splitting Winnings - Advice Needed

Reply #7

EdG1955 — Tue, 21 May 2019 22:06:51 GMT

You can give away $11.4 million ($22.8 if married) without paying gift tax on it. You have a little confusion about the actual gift tax. It's taxed at the same rate as the rest of your income. While it may seem like double taxation on you, it's actually like you're paying the income tax for the people you're giving to. They don't have to pay taxes on gifts they receive. Also note that you can pay certain medical and tuition expenses tax-free, so you could put all of your relatives thru college i... [ More ]

Reply #6

CDanaT — Mon, 20 May 2019 13:29:54 GMT

https://www.forbes.com/sites/ashleaebeling/2018/11/15/irs-announces-higher-2019-estate-and-gift-tax-limits/#45c82e442959

https://www.irs.gov/newsroom/estate-and-gift-tax-faqs

Reply #5

KY Floyd — Mon, 20 May 2019 03:22:27 GMT

You've got two choices. One is to collect the winnings yourself and then give gifts to anybody you want. That could result in paying taxes twice, because if you gift too much you'll pay a gift tax. If you want to make relatively small gifts every year that's the easiest option.

Option two is to have an agreement ahead of time to share any prize you win with others. In that case you each win and you each pay income taxes on what you win. The trick with option two is that you have to make the I... [ More ]

Reply #4

Stack47 — Thu, 16 May 2019 23:23:32 GMT

If you really need to know , contact a knowledgeable trust attorney and they can give you the facts.

Reply #3

MsBee18 — Thu, 16 May 2019 03:41:30 GMT

California Lottery allows you to claim prizes of $1 million or more as a group. The group must consist of 100 or fewer members. If you plan on giving a significant portion of your lottery win to family/friends it is better tax wise to include them as a group when you claim.

Otherwise, once you get over $15,000 per person you get in Gift Tax land. Now there are Gift Tax exemptions. You can use the Lifetime Gift Tax Exemption for amounts over $15,000. For 2019, the LGTE amount is $11.4 million.... [ More ]

Reply #2

gatorsrok — Thu, 16 May 2019 01:10:20 GMT

Have them give you a few dollars beforehand and then its a partnership and you split the winnings based on the relative contribution of each person. Also, each person is individually liable for their own share of taxes on the winnings.

Reply #1

music* — Wed, 15 May 2019 23:46:14 GMT

I think that you can begin your search at www.irs.gov Then call their toll free line.

Spend some or your winnings on either an accountant or Certified Public Accountant. CPA.

A tax lawyer could be your next step. They are expensive.

There is the annual exclusion amount of $15,000.00 per person per year. Give more than that and you will pay gift taxes. I hope that you can nail down what that rate will be.

Splitting Winnings - Advice Needed

idkimawk22 — Wed, 15 May 2019 23:28:13 GMT

Hello,

I just have a quick question I hope you all have done more research than I and can assist....

If I were to win a jackpot (say Tonights powerball w/ Jackpot @ 250m, CV at, 156,300,000).....

I want to give away about 44-45% of that to my family/friends... so like $67-68m

Should I gift it? and say I bought each of them a car, a house, and also give a cash sum, would all of it be taxed? (So essentially will they be looking at double tax, one time when I claim jac... [ More ]