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would you take cash or payments on the PB

Topic closed. 62 replies. Last post 11 years ago by CASH Only.

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BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
Magnolia, Delaware
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Posted: October 14, 2005, 9:05 am - IP Logged

Theres no way to pay just one time and be done with it. Cause your taxed on that money every year you have it. <<< "Wrong" You can not be taxed twice on that money, just your additional 13 % in taxes you will owe by April 15 for that tax year!

And if you make money with the money. They want some of that too.<< Correct 

Only if you make money with it (investments or interest) on said money!Then you owe more taxes!

Keep dreaming the impossible dream, it just may come true! Thumbs Up

    Shawnintennesse's avatar - British Pint_414_.jpg
    Springfield,Ohio
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    Posted: October 14, 2005, 9:08 am - IP Logged

    Theres no way to pay just one time and be done with it. Cause your taxed on that money every year you have it. <<< "Wrong" You can not be taxed twice on that money, just your additional 13 % in taxes you will owe by April 15 for that tax year!

    And if you make money with the money. They want some of that too.<< Correct 

    Only if you make money with it (investments or interest) on said money!Then you owe more taxes!

    What you just said was wrong is right... I also stated your taxed every year you have it..

    If your taxed 13% on it. Then your taxed more than once on that money...

    If it weren't for Vtracs and STXS where would we be?

      sirbrad's avatar - Lottery-062.jpg
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      Posted: October 14, 2005, 9:09 am - IP Logged

      Nonetheless, the IRS never has to play the lottery....they win every time someone else does! Lol.

        sirbrad's avatar - Lottery-062.jpg
        PA
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        Posted: October 14, 2005, 9:14 am - IP Logged

        With all these high percentage taxes, how long until your windfall dwindles down to practically nothing? I would definitely be talking with a team of advisers...for awhile. Also what is the highest non taxable interest investments out there? U.S. Treasury bonds?

          BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
          Magnolia, Delaware
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          Posted: October 14, 2005, 10:52 am - IP Logged
          I also stated your taxed every year you have it.. <<< "Wrong" You can't be by the IRS! Lets say I have all that money in a "safe deposit box!" How in Gods name is the IRS going to tax it? They can't! Because I already paid all of the tax on it and put it away as not to earn any dividends! That makes that money non-taxable! Money that has been taxed before that now doesn't earn any dividends/interest can't be taxed again! Heck stick the freaking money in a mattress or in the walls of your home and you tell me how it's going to be taxed again by the IRS!

          If your taxed 13% on it. Then your taxed more than once on that money << "Wrong again" Look Uncle Sam gets the bulk of his money (25%)  upfront right off the top! That's just to make sure he's getting the majority (2/3) of his money now! It's Called Insurance!2/3's of something is better than nothing! Now, lets say someone decided to wire their money to a bank in another country and they follow shortly after that without paying the additional 13% that's owed! Do you really think Uncle Sam is going to care to much? I think not, because he already received the bulk of his money from them before they even received one penny of their winnings! If someone was to do something like that, I wouldn't come back to the United States, if I was them!

          So the additional (<keyword)13% is what he didn't take the first time! That's all, nothing more! It's not being taxed a second time!

          Keep dreaming the impossible dream, it just may come true! Thumbs Up

            sirbrad's avatar - Lottery-062.jpg
            PA
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            Posted: October 14, 2005, 11:32 am - IP Logged

            So are you saying that as long as your principle is not accumulating interest, you will never pay taxes on it again? I know I would never use all the principle regardless, but I would most likely want my money to earn interest over time. Heck one could spend hundreds of thousands of their principle a year and never run out anyway, but that would be eating away at it unnecessarily. I was hoping that the interest acquired would cancel out the majority of the tax costs, even if the interest is taxed. I would need some professionals to tell me all the exact figures, then go from there.

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              Greenwich, CT
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              Posted: October 14, 2005, 11:37 am - IP Logged

              It's called Income Tax for a reason.  As long as the money is not incoming that year, yer not gonna get taxed on it.

                BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                Magnolia, Delaware
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                Posted: October 14, 2005, 11:48 am - IP Logged

                That is 100% Correct Jag331!    No Income, No Tax!    No Interest, No Tax!

                No Dividends, No Tax!    No Capital Gains, No Tax!

                Keep dreaming the impossible dream, it just may come true! Thumbs Up

                  sirbrad's avatar - Lottery-062.jpg
                  PA
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                  Posted: October 14, 2005, 11:55 am - IP Logged

                  What about taking the 100 million and putting it into 'tax-free municipal bonds' at a rate between 4 and 5%?  Would that be around $4,000,000 a year tax-free income and never have to touch the principal?

                    BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                    Magnolia, Delaware
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                    Posted: October 14, 2005, 12:27 pm - IP Logged

                    Remember the "tax-free municipal bonds" only mature in the time stated (3 or 5 years) and the interest is paid at the end of that time. So the 4-5% is per-year, but it's compounded. It all depends on the municipal bonds you buy!

                    Keep dreaming the impossible dream, it just may come true! Thumbs Up

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                      Morrison, IL
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                      Posted: October 14, 2005, 1:15 pm - IP Logged

                        Dammit.  They need to make tax-free perpetual bonds.


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                        Posted: October 14, 2005, 1:16 pm - IP Logged

                        I would take cash value no matter if I play MM, PB, or CA SLP. People will get lots of money taken away by Uncle Sam if they take payments.


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                          Posted: October 14, 2005, 1:27 pm - IP Logged

                          Interest on munis are subject to the federal alternative minimum tax, the state income tax, and any local taxes on income.

                           Why obsess on this topic unless you win?  Also, you're likely to get hit with the top marginal tax rate regardless of whether you pick cash or annuity with the prizes in the Powerball and the MegaMillions.  Lump sum is the simple answer.

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                            Sparta, NJ
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                            Posted: October 14, 2005, 1:29 pm - IP Logged

                            Why would some one win $140M and put it in a safe box some where? To avoid taxes? Don't spend the original dollar (or two on PP) and save the temptation to open the box! Give me a $140M, and uncle can have his taxes. Him and my lawyers and accountants can argue about the percise amount.

                            When the snow falls this year, I wouldn't be where the snow falls. That's all that would matter.

                            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: October 14, 2005, 2:32 pm - IP Logged

                              Chewie, get with the program! It was only meant as an example for Shawnintennesse's comment "I also stated your taxed every year you have it.."

                              I know I wouldn't do such thing! And I will keep Uncle Sam's hands out of my pocket as much as possible if I win! Yes, he'll get his share on the lump sum payout and April 15, but after that he'll play hell getting any more from me at tax time (all legally of course)!

                              Keep dreaming the impossible dream, it just may come true! Thumbs Up