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EuroMillions and US Taxes

Topic closed. 22 replies. Last post 11 years ago by Chewie.

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BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
Magnolia, Delaware
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Posted: August 17, 2005, 1:12 pm - IP Logged

Just remember it can start as a US corp and be moved off shore! This only works for winning US based lotteries. Once the corp is off shore claim the ticket in the corps name to save the money that you would have paid in taxes to the IRS and the states that do tax the lottery winnings. But it is best to get an off shelf corp that's off shore already, than it is to move one from the US to off shore!

    danisiri's avatar - Avatar all_for_Jesus.jpg

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    Posted: August 18, 2005, 12:11 am - IP Logged

    So, then the answer to my original posting is that tax is paid if the money is brought into the U.S. or is found out to exist by the IRS.  If the money is not brought into the U.S. and is hidden from the IRS using an offshore company, then no taxes are incurred.

    This is interesting how this thread developed.  Given the weakness of the dollar, keeping the money offshore makes sense.  Though, the answer is not exactly what I was looking for given the deception involved.

    Besides, playing EuroMillions for me involves playing online, which opens up a whole other bag of risk, not to mention the larger per ticket cost which is more than I have budgeted for me to play each drawing (one ticket for $1 in MM or CA SLP).

    Thanks to everyone for your comments!

      dvdiva's avatar - 8ball

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      Posted: August 18, 2005, 12:14 am - IP Logged

      Like the IRS wouldn't notice the first American to hit Euromillions. Good luck getting away with it if you hit.

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        Sparta, NJ
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        Posted: August 18, 2005, 8:57 am - IP Logged

        Like the IRS wouldn't notice the first American to hit Euromillions. Good luck getting away with it if you hit.

        Its my understanding tha big business does it all the time. Look at all the off-shore "american" companies beating the tax man this very second! All you have to have is the money to pay the competent lawyers. Lawyers write laws so that lawyers can find clauses to beat the law.

        Cheers

        |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

        I only trust myself - and that's a questionable choice

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          New Mexico
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          Posted: August 18, 2005, 9:37 am - IP Logged

          My understanding from the earlier posts is that it's not a question of 'hiding', nor of attempting to hide the winnings.  It's a question of only the money that actually enters the US being taxed.  If it doesn't enter the US it's outside US/IRS/State jurisdiction and there's no tax owed on it.

          Just my take on what's been said on the thread.  Which might be my own befuddlement, or might be inaccuracy in some of the posts by other LP members.  Or it might be true.

          I'll be reading the later posts to see if anyone clears this up.

          Jack

          Absorb the good, ignore the bad, weigh the ugly.

          It's about number behavior.

          Egos don't count.

           

          Dedicated to the memory of Big Loooser

           

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            Sparta, NJ
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            Posted: August 18, 2005, 9:58 am - IP Logged

            My understanding from the earlier posts is that it's not a question of 'hiding', nor of attempting to hide the winnings.  It's a question of only the money that actually enters the US being taxed.  If it doesn't enter the US it's outside US/IRS/State jurisdiction and there's no tax owed on it.

            Just my take on what's been said on the thread.  Which might be my own befuddlement, or might be inaccuracy in some of the posts by other LP members.  Or it might be true.

            I'll be reading the later posts to see if anyone clears this up.

            Jack

            I would tend to agree with you. However, knowing the concept of the IRS, who knows what they can do. When I first started working overseas (as a US contractor), everything I made was tax free, regardless of where I spent it. Then they changed the law to set a maximum exemption. Anything to that rages was tax free. Obviously, if I bought something in-country, then I paid a sales tax on it.

            I would think that is the way it goes for lotto winnings. You shouldn't have to "hide" the money, but I would imagine you would have to get some super-great legal advise to keep from violating some small clause in the IRS code.

            Cheers

            |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

            I only trust myself - and that's a questionable choice

              BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
              Magnolia, Delaware
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              Posted: August 18, 2005, 10:48 am - IP Logged

              Rip you are correct about the money not being taxed as long as it doesn't come into the US. But who isn't going to try to spending some of it here in the US when they are a US citizen? I know I couldn't keep from doing it! So that's what makes those purchases taxable!

              Now If the off shore company buys a house for it's CEO and keeps the title in the company name and then places such house in a trust, the CEO can not be taxed on said purchase! All items have to be owned by the company/trust. I know of one person who's worth 15 million (at least) and all property (houses & cars) are owned by the her trust, but she's the one who makes the purchases for the trust! She uses the car and the house everyday as if she owns them, but she really doesn't own a thing as far as the IRS is concerned. Now to keep Uncle Sam happy she takes a modest salary (about 40K) from the trust as it administrator just to pay something in taxes. This move she says keeps the IRS from bothering her or her trust. She says she gets most of it back each year when she files her return. This is how the rich keep getting richer and the same goes for her bookkeeper!

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                Sparta, NJ
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                Posted: August 18, 2005, 2:17 pm - IP Logged

                My plan - exactly. Can't be sued if you own nothing. Including cell-phones, furnishings, travel. Everything you spend would be an expense account expenditure, reimburshed by the corporation.  I would think you could follow the same pattern for friends you want to be rich; ala the CEO of Disney. Hire your friend and have their contract cover all expenses and provided corporation housing, cars, etc. All they would have to pay in employment tax on minimum wage (which would be zero). Heck, they could even apply for welfare if they actually owned nothing.

                That was Jack Wittikers (sic?) problem. He stood up and said in bold print, here I am shoot at me - and I'll pay for the ammo.

                Cheers

                |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                I only trust myself - and that's a questionable choice