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Legal question?

Topic closed. 36 replies. Last post 10 years ago by justxploring.

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Tx_Mega_Player's avatar - spider
BIG D Texas
United States
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October 16, 2003
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Posted: July 26, 2006, 12:55 am - IP Logged

I agree with Jori. I decent, moral person will report it to the IRS because that is what the law requires. Why would any millionnaire try to "evade" taxes when you can hire a good accountant for help in "avoiding" taxes. There isn't anything wrong or illegal in avoiding taxes, as long as you follow the letter of the law. Can you imagine having several million dollars in the bank, but having to go the prison for tax evasion for not paying several thousand dollars in taxes. Just pay what the law requires you to pay. If your money came from winning the lottery you should still have more than enough left over. I hate paying taxes just like everyone else, but I'd hate it alot less if I still had millions of dollars left over after I paid them.

    Avatar
    NY
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    Posted: July 26, 2006, 1:24 am - IP Logged

    Jorli, can you please explain to me why folks on this website have a problem with 'newbies' such as Alec West, or me ?.

     

    I am a member on several other websites, maybe 30 or 40 that I visit from time-to-time, and when I joined this one, I was attacked as well.

    Why is that ?   I've never been attacked on any website for being a noob aside from this one, so I am wondering why some folks attack noobs on THIS website ? It's uncalled for.

    Noobs have to start SOMEWHERE, correct ?   So if not on this thread, which one ?

     

    Changing topic now:

     

    I don't mind paying taxes at all, I have no problem paying my fair share, but I hardly call paying 240 mill out of 365 mill 'fair'. 


    What were you attacked about? Was it because you're new or because of what you said?

    As far as the taxes on winnings go, the most you could lose to taxes would be about 53%. That's a worst case scenario based on living in one high tax state and winning in another high tax state, and having every dimetaxed at the highest rate. That could be 18% to the states, and 35% to the IRS. If you actually won $365 million that means you might pay $193,450,000. So far, nobody has ever come close to winning $365 million. The people in Nebraska won about $177 million.

      guesser's avatar - Lottery-017.jpg

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      June 16, 2006
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      Posted: July 26, 2006, 1:25 am - IP Logged

      I agree with Jori. I decent, moral person will report it to the IRS because that is what the law requires. Why would any millionnaire try to "evade" taxes when you can hire a good accountant for help in "avoiding" taxes. There isn't anything wrong or illegal in avoiding taxes, as long as you follow the letter of the law. Can you imagine having several million dollars in the bank, but having to go the prison for tax evasion for not paying several thousand dollars in taxes. Just pay what the law requires you to pay. If your money came from winning the lottery you should still have more than enough left over. I hate paying taxes just like everyone else, but I'd hate it alot less if I still had millions of dollars left over after I paid them.

      So you see no problem with paying 240 mill out of 365 mill in taxes, and being able to keep only 125 mill ?

       

      I already know what you are going to say: '125 mill is enough for me'.

       

      Fine, most folks that got 125 mill wouldn't care, not even sure I would, BUT, let's go down a few notches:

      Say you win 36.5 mill, you pay 24 mill in taxes, leaving you with 12.5 mill - I know that's still a lot of money also, but doesn't anyone think a tax rate of 55-65 percent is just not right ?   25-33 percent, I can agree with, but 55-65 percent ?

      I'm not advocating NOT paying taxes, nobody is saying NOT to pay taxes, I am just not happy with the tax RATE, but unless I win the big one, it won't matter. 

       

      The only problem I have with Jori is the reference to newbies.  If the real Warren Buffett got on a stock market investing website and made some noob posts, I betcha folks would listen and not be critical, and it should be no different here. 

        justxploring's avatar - villiarna
        Wandering Aimlessly
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        Posted: July 26, 2006, 2:43 am - IP Logged

        Another avenue you might wish to consider is making this person a loan instead of a gift.  See an attorney.  He can draw up all the proper legal papers.

        The difference will be that you, as the loaner, will never enforce collection.  But should the IRS claim you made your friend a gift, refer to the Federal court case United States vs.Harold Ford.

        Very interesting suggestion, Gasmeterguy.

          justxploring's avatar - villiarna
          Wandering Aimlessly
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          Posted: July 26, 2006, 2:53 am - IP Logged

          I don't understand the people who think trying to legally avoid paying taxes has anything to do with immorality.  Corporations are the biggest offenders and often try everything available to save money on taxes. I am a very ethical person. I've never stolen as much as a candy bar. However, I pay my taxes because I have to and it's the law, not because I want to and I don't think that's a blemish on my moral character. But why can't I decide where my money is spent?  I don't think the common taxpayer is represented well in this country. This is called taxation without representation. Many former IRS agents and IRS investigators now protest our tax system. This does not make them un-American. Even George Bush thinks paying an Estate Tax (or a "Death Tax") is wrong. Today a common goal of a Senior Financial Planner is how to help a wealthy person die broke in the eyes of the law. Most people I know will never be affected by it,  but what more obvious form of double taxation could there be than tax when you die? You earn money, you put it away for your children, and then they have to pay taxes on your estate to the government.  Gift tax is no different. You buy a lottery ticket and that money helps fund projects, but you don't get a tax break for buying more tickets, do you? Okay, I accept that. Then you pay tax when you win the money, since it's income. Okay, I give in and accept that too. So now you want to help Mrs. Jones down the street and Mr. Smith up the block and you'll have to pay tax on that as well if you give them more than $12,000 each. Why? There is no reasonable explanation. Abolishing both the gift tax and estate tax would be the moral thing to do. They don't make any sense.

            truecritic's avatar - PirateTreasure
            Michigan
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            Posted: July 26, 2006, 4:41 am - IP Logged

            Hey fast eddie where are you?  Your comments, ideas and presence would be welcome!

            If any taxes should be removed, they are the taxes on any form of gambling.  By definition and by reports in the news media, more money is lost than ever won.  Therefore anyone able to make a little profit after overcoming the odds deserves to keep the winnings without being penalized with taxes.

            Gifts aren't taxed until you go over the $12,000 (as pointed out by justxploring) - seems like a reasonable amount to allow without a gift tax.  I have never been the receiver of an amount that high and I don't know of anyone that was.  So, I don't much care if someone rich enough to give more, pays more tax.

            As a side note, there is a further "free gift" that pays no taxes:

            Quote:
            Now, the IRS has decided that you can prepay multiple years' tuition in advance, to "front-end load a bunch of years," says Jeffrey Soulard, an accountant with Cabot Money Management in Salem, Mass. "That gets a huge chunk of money out of the estate now."

            A few rules still apply. The direct transfer has to be nonrefundable and nontransferable.

            When you're sending a check to a university bursar's office to cover tuition for the current year, that isn't really an issue. However, if you're asking the school to allow prepayment for four years' (or more) worth of education, you'll need some sort of written contract to assure the IRS that the money will be used for the beneficiary's tuition and nothing else. No refunds if he or she drops out or isn't accepted in the first place. 

              justxploring's avatar - villiarna
              Wandering Aimlessly
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              Posted: July 26, 2006, 6:30 pm - IP Logged

              True. In addition to the tuition, you can pay approved medical expenses and insurance premiums for someone.  You can also give more than $12,000 as long as the total doesn't exceed the lifetime allowance which I believe is now a million, which might change. I think it just has to be reported as a gift covering XXX amount of years, so if you give someone $60,000 in one check, it would cover 5 years of gifts. As I wrote earlier, people should always contact a trustworthy accountant or lawyer. 

              "So, I don't much care if someone rich enough to give more, pays more tax." TrueCritic

              I agree, but I don't think it hurts the rich, which was my point. The donor pays the tax, so the gift to the recipient might be less. If someone wanted to give $50,000 but then had to pay tax on it, he might reconsider the amount of the gift, although there are many other ways to legally help a friend.  As Gasmeterguy pointed out, a loan might be one way. Another might be letting him house-sit your second home, rent free. Many homeowners live here for only 2 or 3 months a year. Some travel for several months or years and their homes are empty. Therefore, they hire caretakers. So if you win the lottery and buy a home on the beach in Naples and only visit a few times a year, I might consider doing you a favor by living there and watering the plants for a small salary. LOL