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Lottery tax question...

Topic closed. 21 replies. Last post 3 years ago by a911scanner.

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SergeM's avatar - slow icon.png
Economy class
Belgium
Member #123700
February 27, 2012
4035 Posts
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Posted: February 25, 2014, 5:44 am - IP Logged

You pay tax on the money you earned by working.
You pay a tax when buying a ticket.
You pay tax when you cash in the win.
When you go shopping with the won money, you pay a tax.
Finally nothing is left. How much tax on your coffin nails?

    CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
    TX
    United States
    Member #121193
    January 4, 2012
    1637 Posts
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    Posted: February 25, 2014, 9:15 am - IP Logged

    If someone could answer this question I would greatly appreciate the input.... Provided you won a very large jackpot with a take home of  roughly $65 million after taxes. If you wanted to give a $11 million to your parents and $11 million to your 2 siblings for a total give away of $33 million. Are the gift taxes due the following year or is there some other legal ruling as far as estates are concerned?

    *Oh, I realize the best way is to include them on the initial claim in a trust for tax reasons..For the purpose of this question it's not an agreement or proof to the IRS that the sharing agreement was established before the win. You have done this out of the goodness of your personal wishes, after.

      SergeM's avatar - slow icon.png
      Economy class
      Belgium
      Member #123700
      February 27, 2012
      4035 Posts
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      Posted: February 25, 2014, 9:37 am - IP Logged

      I think that the first question is, how do I win 65E6 USD before taxes.

        Drenick1's avatar - villiarna
        USA
        United States
        Member #152799
        February 25, 2014
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        Posted: February 25, 2014, 3:56 pm - IP Logged

        I think that the first question is, how do I win 65E6 USD before taxes.

        If you want to win $65 million after taxes than you need to be the sole winner of a $200 million annuity jackpot.

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          fajardo
          United States
          Member #152445
          February 15, 2014
          47 Posts
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          Posted: February 25, 2014, 4:21 pm - IP Logged

          If someone could answer this question I would greatly appreciate the input.... Provided you won a very large jackpot with a take home of  roughly $65 million after taxes. If you wanted to give a $11 million to your parents and $11 million to your 2 siblings for a total give away of $33 million. Are the gift taxes due the following year or is there some other legal ruling as far as estates are concerned?

          *Oh, I realize the best way is to include them on the initial claim in a trust for tax reasons..For the purpose of this question it's not an agreement or proof to the IRS that the sharing agreement was established before the win. You have done this out of the goodness of your personal wishes, after.

          Yes they are due the following year. You can use your lifetime tax exemption but that still wont cover it because you are only allow to give 5 million tax free but that literally means lifetime and you wont be able to give anything else in your lifetime or death without paying taxes on it.

           

          That's why is important to have a good estate planner , there is many way they can help you set to a trust to limit your tax liability.


            United States
            Member #152758
            February 24, 2014
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            Posted: February 27, 2014, 8:50 am - IP Logged

            do  u  think  or  know???

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              CST
              United States
              Member #140593
              March 23, 2013
              26 Posts
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              Posted: March 1, 2014, 6:44 pm - IP Logged

              Although many of you are correct on the remainder due for the tax year in which you collect, please be aware that, more than likely, you will not be able to wait until the following April 15th to make a payment.

              More than likely you would be required to make quarterly payments towards your bill that will be due next April.

              I am not an accountant, but I did stay at a Holiday Inn Express last night.