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So what if you're best friend won the lottery??

Topic closed. 80 replies. Last post 4 years ago by whiteballz.

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United States
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September 7, 2011
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Posted: April 30, 2013, 12:22 pm - IP Logged

I'd love it if my best friend wanted to give me some of her lottery win, but only if she was aware that anything above $15k would be taxable at the rate of 55%. (I think those numbers are correct;  they changed the gift tax exemptions last year)  If you bought someone a car for...say...$30k...you'd have to pay taxes on the other $15k. ...another $8250.  If you were married, then your spouse could claim the other half of the gift and you'd owe nothing in gift taxes.

If the shoe was on the other foot and I was the one winning the lottery, I'd want to be generous - as much as I could - but I'd also not want to pay any more taxes than I already had.  I would have already paid right at 40% in federal tax on my winnings and would be loathe to pay more.   (I don't want to sound like a cheapskate, but Uncle Sam ain't my favorite uncle these days)

Instead, I would give my friend needed medical help, such as an operation to ease her discomfort or required extensive dental work.  Those things can be funded tax-free as long as you directly pay the medical provider.  Also, if my friend wanted to go back to school, I could pay that tax free - again, if the payment was paid directly to the school. 

The amt. I won would make a difference;  if I won $100 million, then I wouldn't mind (too much) paying $1.55 million so my friend could be a millionaire too, but if I "only" won a million...then I'd still want to be generous, but would still not want to pay an outrageous amt. of taxes on my generosity.

I Agree! I was thinking mostly the same thing.

    RJOh's avatar - chipmunk
    mid-Ohio
    United States
    Member #9
    March 24, 2001
    19895 Posts
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    Posted: April 30, 2013, 12:51 pm - IP Logged

    I'd love it if my best friend wanted to give me some of her lottery win, but only if she was aware that anything above $15k would be taxable at the rate of 55%. (I think those numbers are correct;  they changed the gift tax exemptions last year)  If you bought someone a car for...say...$30k...you'd have to pay taxes on the other $15k. ...another $8250.  If you were married, then your spouse could claim the other half of the gift and you'd owe nothing in gift taxes.

    If the shoe was on the other foot and I was the one winning the lottery, I'd want to be generous - as much as I could - but I'd also not want to pay any more taxes than I already had.  I would have already paid right at 40% in federal tax on my winnings and would be loathe to pay more.   (I don't want to sound like a cheapskate, but Uncle Sam ain't my favorite uncle these days)

    Instead, I would give my friend needed medical help, such as an operation to ease her discomfort or required extensive dental work.  Those things can be funded tax-free as long as you directly pay the medical provider.  Also, if my friend wanted to go back to school, I could pay that tax free - again, if the payment was paid directly to the school. 

    The amt. I won would make a difference;  if I won $100 million, then I wouldn't mind (too much) paying $1.55 million so my friend could be a millionaire too, but if I "only" won a million...then I'd still want to be generous, but would still not want to pay an outrageous amt. of taxes on my generosity.

    If you really wanted to share your prize with your best friend without paying all that extra taxes, you could include them on the claim form, that way they could pay the taxes from their share.  The only problem might be they would want a bigger share than you would be willing to assign them.

     * you don't need to buy more tickets, just buy a winning ticket * 
       
                 Evil Looking       


      United States
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      Posted: April 30, 2013, 1:04 pm - IP Logged

      If you really wanted to share your prize with your best friend without paying all that extra taxes, you could include them on the claim form, that way they could pay the taxes from their share.  The only problem might be they would want a bigger share than you would be willing to assign them.

      I Agree! Good point sharing the ticket.

        helpmewin's avatar - dandy
        u$a
        United States
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        February 22, 2011
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        Posted: April 30, 2013, 1:43 pm - IP Logged

        I Agree! Good point sharing the ticket.

                                 

          rdgrnr's avatar - walt
          Way back up in them dadgum hills, son!
          United States
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          April 28, 2009
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          Posted: April 30, 2013, 2:10 pm - IP Logged

          I was reffering to the toothless beggars on Beale street in Memphis who like to block the sidewalks. Hopefully the fake facades will wipe them out one day.

          Oh, we consider Memphis part of Arkansas.


            United States
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            July 25, 2012
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            Posted: May 1, 2013, 7:08 am - IP Logged

            If you really wanted to share your prize with your best friend without paying all that extra taxes, you could include them on the claim form, that way they could pay the taxes from their share.  The only problem might be they would want a bigger share than you would be willing to assign them.

            Yeah but you'd have to split it even steven....they dont let you say "ok I want to give this person this amount and this person this amount" I dont want to split it I just want to give a little something....LOL

              joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

              United States
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              February 12, 2006
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              Posted: May 1, 2013, 9:58 am - IP Logged

              Yeah but you'd have to split it even steven....they dont let you say "ok I want to give this person this amount and this person this amount" I dont want to split it I just want to give a little something....LOL

              people its called a trust

              lawyer can spell out who gets what

              if i want to write   Person X gets 1 freaking penny

              they get 1 freaking penny, rest can go to who u name in trust when u set it up

              people just need to learn how to use a trust, it handles   sharing/split as best tool out there

              god forbid anyone use's a lawyer thro and does it right..................

              No bees, no honey.

                whiteballz's avatar - Lottery-015.jpg
                Nutley, New Jersey
                United States
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                August 1, 2012
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                Posted: May 1, 2013, 10:05 am - IP Logged

                Yeah but you'd have to split it even steven....they dont let you say "ok I want to give this person this amount and this person this amount" I dont want to split it I just want to give a little something....LOL

                I don't see why you would have to split the prize 50-50. If a friend and myself bought a $1 mega millions ticket with money we pooled together, I paid 90 cents and my friend paid 10 cents, does that mean my friend is entitled to 50 percent of the money?

                .

                  PlayToWin47's avatar - Lottery-041.jpg
                  Joplin MO
                  United States
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                  January 28, 2013
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                  Posted: May 1, 2013, 10:08 am - IP Logged

                  Yeah but you'd have to split it even steven....they dont let you say "ok I want to give this person this amount and this person this amount" I dont want to split it I just want to give a little something....LOL

                  I think that depends on what state you're playing in.

                  In Missouri, you can split it using a fixed dollar amount, or a percentage ... on the claim form, plain and simple.

                  I don't understand what is going on in Kansas...  They say "Only one individual can claim a lottery ticket. Therefore, a group will have to designate one person to claim the prize.  The remaining group members will need to complete and sign the Multi-Winner form, enabling the Lottery to properly report winnings to the appropriate taxing authorities".  I need to call and ask... does that mean that the "one individual" will then have to pay gift taxes when splitting the money?

                    whiteballz's avatar - Lottery-015.jpg
                    Nutley, New Jersey
                    United States
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                    Posted: May 1, 2013, 10:18 am - IP Logged

                    If you really wanted to share your prize with your best friend without paying all that extra taxes, you could include them on the claim form, that way they could pay the taxes from their share.  The only problem might be they would want a bigger share than you would be willing to assign them.

                    I've thought about doing something like this in the past but the only problem I have is in a state where the winners' names are public record. The newspaper headlines might say, (my real name) and his friend so and so won the jackpot. I'd hate to have to expose a friend or family member to the press and make them deal with the media frenzy.

                    If I won anything more than $20 million, I'd most likely collect the prize myself so only my name ends up in the newspapers and gift the money to my friend or family member and just take the extra tax hit.

                    .


                      United States
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                      Posted: May 1, 2013, 10:24 am - IP Logged

                      Why would the government charge a gift tax on money that has already been taxed at 25%+ ?


                        United States
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                        Posted: May 1, 2013, 10:27 am - IP Logged

                        If there is a smaller gift amount that is not taxed, why not give that amount each year until the objective is reached. Even if they took out a loan and paid it back with the gift it would be cheaper #@$&#@ %.

                          PlayToWin47's avatar - Lottery-041.jpg
                          Joplin MO
                          United States
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                          January 28, 2013
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                          Posted: May 1, 2013, 10:37 am - IP Logged

                          If there is a smaller gift amount that is not taxed, why not give that amount each year until the objective is reached. Even if they took out a loan and paid it back with the gift it would be cheaper #@$&#@ %.

                          Starting 1/1/2013, you can give $14,000 per person without paying the gift tax.

                          I think that the whole "gift tax" issue is totally wrong ... but that is our greedy government for you!


                            United States
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                            September 7, 2011
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                            Posted: May 1, 2013, 11:06 am - IP Logged

                            Starting 1/1/2013, you can give $14,000 per person without paying the gift tax.

                            I think that the whole "gift tax" issue is totally wrong ... but that is our greedy government for you!

                            I Agree! We need a stripped down government.

                              whiteballz's avatar - Lottery-015.jpg
                              Nutley, New Jersey
                              United States
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                              August 1, 2012
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                              Posted: May 1, 2013, 11:15 am - IP Logged

                              I Agree! We need a stripped down government.

                              they can start by getting rid of the TSA.

                              .