Welcome Guest
Log In | Register )
You last visited December 10, 2016, 5:39 am
All times shown are
Eastern Time (GMT-5:00)

Taxes on Canadian lottery winnings

Topic closed. 24 replies. Last post 10 years ago by starchild_45.

Page 2 of 2
PrintE-mailLink
Avatar
NY
United States
Member #23835
October 16, 2005
3475 Posts
Offline
Posted: August 11, 2006, 12:32 pm - IP Logged

i like this response. this makes a lot of sense but still makes me sad. i was hoping to keep it up north and not pay taxes on it. i don't want to give up my citizenship over this. i know i have to win the big one first to even have to worry about it.

right now i have a british columbia and quebec super 7 ticket that are going to come due soon. as the canadians say "ehhh, it could happen"


The IRS thought about this a long time before you did. Giving up your citizenship wouldn't help unless you do it before you win. If you renounce your US citizenship in order to avoid taxes you'll still owe them for the next ten years. If you renounce your citizenship after winning a significant sum in the lottery you'll have two problems. First, it's a safe bet what the courts will rule when asked to decide if avoiding taxes played a role in your decision. Second, regardless of the court's ruling you'd owe taxes on income earned while you were still a citizen, and that would include the lottery winnings.

If you were still fairly young I suppose you could claim your after-tax winnings and invest most of the proceeds in an annuity that wouldn't pay anything until the 10 year period was over. If you cleared 50 million you could invest 49 million and live on the remaining 1 million for 10 years. That could let you have perhaps $130,000 a year for 10 years, and then the annuity might pay out 80 to 100 million with the interest no longer subject to US taxes. Of course you'd have to be living somewhere, and you might owe taxes to that place.

Saving 100 grand on taxes would mean I'd still have perhaps 400 grand a year, and I could live rather nicely on that, so I can't see giving up citizenship to avoid taxes if I've got enough that the taxes are significant.

    Avatar
    New Mexico
    United States
    Member #12305
    March 10, 2005
    2984 Posts
    Offline
    Posted: August 11, 2006, 6:54 pm - IP Logged

    i like this response. this makes a lot of sense but still makes me sad. i was hoping to keep it up north and not pay taxes on it. i don't want to give up my citizenship over this. i know i have to win the big one first to even have to worry about it.

    right now i have a british columbia and quebec super 7 ticket that are going to come due soon. as the canadians say "ehhh, it could happen"

    Here's a link th the thread I mentioned earlier.

     Euro-Millions and US Taxes 

     All a matter of who a person chooses to believe speaks with the most authority on the issue, I suppose.

    If it's ever an issue I expect a person ought to talk to someone with a law degree.

    The power of positive speaking comes from too many directions on this.  Seeing folks speak opposing certainties with such authority leaves it all up for grabs.

     Thanks for your input KYFloyd.  It definitely offers another possibility of where truth might be hiding out.

     

    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

     

      starchild_45's avatar - spherewall2
      kent, washington
      United States
      Member #3509
      January 26, 2004
      465 Posts
      Offline
      Posted: August 12, 2006, 6:35 am - IP Logged

      Here's a link th the thread I mentioned earlier.

       Euro-Millions and US Taxes 

       All a matter of who a person chooses to believe speaks with the most authority on the issue, I suppose.

      If it's ever an issue I expect a person ought to talk to someone with a law degree.

      The power of positive speaking comes from too many directions on this.  Seeing folks speak opposing certainties with such authority leaves it all up for grabs.

       Thanks for your input KYFloyd.  It definitely offers another possibility of where truth might be hiding out.

       

      true. the other thread makes sense too. so much for my dream.

        Avatar
        new delhi
        India
        Member #22145
        September 20, 2005
        174 Posts
        Offline
        Posted: August 12, 2006, 8:16 am - IP Logged

        actually India too has a very high tax on lottery winnings...the only thing is that our mega jackpots have never exceeded 3 million pounds serling...I think we get taxed 40% unless we belong to the state of Sikkim wjich is tax free................so cheer up!

          csfb's avatar - Lottery-001.jpg

          United States
          Member #15309
          May 13, 2005
          307 Posts
          Offline
          Posted: August 12, 2006, 10:50 am - IP Logged

          Here's a link th the thread I mentioned earlier.

           Euro-Millions and US Taxes 

           All a matter of who a person chooses to believe speaks with the most authority on the issue, I suppose.

          If it's ever an issue I expect a person ought to talk to someone with a law degree.

          The power of positive speaking comes from too many directions on this.  Seeing folks speak opposing certainties with such authority leaves it all up for grabs.

           Thanks for your input KYFloyd.  It definitely offers another possibility of where truth might be hiding out.

           

          KY Floyd has given accurate factual information.  But a person chooses to believe whom he chooses to believe.  If it was Benjamin Franklin who said what KY Floyd said, more people would believe.

                   Sun Smiley             

            Avatar
            New Mexico
            United States
            Member #12305
            March 10, 2005
            2984 Posts
            Offline
            Posted: August 12, 2006, 12:45 pm - IP Logged

            KY Floyd has given accurate factual information.  But a person chooses to believe whom he chooses to believe.  If it was Benjamin Franklin who said what KY Floyd said, more people would believe.

            KY Floyd might well have given accurate, factual information.  You might well be correct in declaring it thus.  As you assert, a person can choose to believe both of you know of what you speak.

            But a prudent person who has anything invested in learning the truth would do well to protect whatever that investment might be by getting the facts from sources more verifiable than the words of strangers of whom nothing is known other than the certainties expressed in words on a screen by anonymous fingers.

            Whether they name the centerpoint of those certainties Benjamin Franklin, csfb, or KY Floyd.

            In retrospect I can see  my personal folly in beginning this thread.  While I have no reason to disbelieve KY Floyd, you, or any others who've expressed opinions implying knowledge of the facts, if I wanted answers I could rely on I'd have been far better served by going directly to the source of the information.

            The folly actually began when I believed what someone said in the earlier thread and asked for clarification on this one.

            Some lessons about life and the Internet have to be learned repeatedly before they sink in.

            J

            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

             

              csfb's avatar - Lottery-001.jpg

              United States
              Member #15309
              May 13, 2005
              307 Posts
              Offline
              Posted: August 12, 2006, 1:14 pm - IP Logged

              Hi J, nice talking to ya'. 

              I don't disagree with you at all.  I was just citing a fact and an opinion.  And here's another one:  A person usually believes that which is consistent with his own belief or opinion.

              Hope you're having a nice day.  Bis dahin...

                       Sun Smiley             

                Avatar
                New Mexico
                United States
                Member #12305
                March 10, 2005
                2984 Posts
                Offline
                Posted: August 12, 2006, 3:01 pm - IP Logged

                Hi J, nice talking to ya'. 

                I don't disagree with you at all.  I was just citing a fact and an opinion.  And here's another one:  A person usually believes that which is consistent with his own belief or opinion.

                Hope you're having a nice day.  Bis dahin...

                Hi yourself csfb.  Nice talking to you, also.

                  A person usually believes that which is consistent with his own belief or opinion.

                 In that case, it's consistent with my own belief or opinion that I don't know.  But I also probably ain't going to put a lot of effort into trying to figure out Canadian Lottery numbers.

                You have a good day also.

                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

                 

                  Avatar
                  NY
                  United States
                  Member #23835
                  October 16, 2005
                  3475 Posts
                  Offline
                  Posted: August 13, 2006, 1:49 am - IP Logged


                  My info may be accurate, but anyone who relies on it for anything of consequence is a fool. I'd be a fool to rely on it, too, FTM. If anybody has a significant change in their tax situation, whether it's winning the lottery or the possibility of paying taxes to, or earning income from, another country should seek advice from a tax professional who can give them personal advice. OTOH, I think it would be pretty foolish to pay for info about such matters before you actually find yourself in a situation that makes the info important.

                  If anyone wants to believe that they can avoid taxes simply be keeping foreign income out of the US they should feel free to do so. Dreaming that you won't have to pay taxes on a Canadian lottery or Euromillions really isn't any different than dreaming about winning a bigger jackpot after this week's jackpot rolls a couple of times.  As long as you don't conceal income from the IRS the worst that will happen is you'll be disappointed when you pay more in taxes than you expected. Concealing the income after finding out it is taxable, OTOH, can result in more unpleasant outcomes.

                    starchild_45's avatar - spherewall2
                    kent, washington
                    United States
                    Member #3509
                    January 26, 2004
                    465 Posts
                    Offline
                    Posted: August 13, 2006, 4:47 am - IP Logged


                    My info may be accurate, but anyone who relies on it for anything of consequence is a fool. I'd be a fool to rely on it, too, FTM. If anybody has a significant change in their tax situation, whether it's winning the lottery or the possibility of paying taxes to, or earning income from, another country should seek advice from a tax professional who can give them personal advice. OTOH, I think it would be pretty foolish to pay for info about such matters before you actually find yourself in a situation that makes the info important.

                    If anyone wants to believe that they can avoid taxes simply be keeping foreign income out of the US they should feel free to do so. Dreaming that you won't have to pay taxes on a Canadian lottery or Euromillions really isn't any different than dreaming about winning a bigger jackpot after this week's jackpot rolls a couple of times.  As long as you don't conceal income from the IRS the worst that will happen is you'll be disappointed when you pay more in taxes than you expected. Concealing the income after finding out it is taxable, OTOH, can result in more unpleasant outcomes.

                    i agree with you and rip about getting responsible tax help if i should ever be so lucky to win in canada. coming here still gives me the opportunity to gleam a little light from people like yourself and rip. i don't have to dig up info from all over the internet trying to get some kind of answer that i can just come here and ask. now i need to check my last canadian ticket while my other subscription runs out this week. i have no plans to go to canada for awhile. so sad.