|Posted: July 28, 2005, 12:28 pm - IP Logged|
You were actually closer with your estimate. The cash option is normally 55% to 60% of the annuity amount, which in this case would be around $18 Million. ($30 million x60%)
Then Federal tax would normally be around 38% of that. ($18 million x62%)
So you are looking at roughly $11.16 Million.
Not sure if Texas has a city and state tax. If so, you would need to deduct those as well.
Also keep in mind that when you win they take taxes out up front but often times not enough, so you would possibly have to pay more at the end of the tax year, unless you invested wisely.
My advice, see a CPA and Tax Attorney when you win.
Good problem to have......I hope you win.
John - LA