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If you won a huge jackpot would you feel obligated to share it?

Topic closed. 57 replies. Last post 2 years ago by Toronto.

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mikeintexas's avatar - tx avatar-1.gif
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Posted: October 11, 2014, 7:03 pm - IP Logged

What ever the amount is they will have to pay the taxes and still have more than what they have now.

From the IRS site:

Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

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    Posted: October 11, 2014, 7:14 pm - IP Logged

    That is good info, but I would hope the donee will agree to pay the taxes.

      music*'s avatar - nw bookeep.jpg
      Happy California
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      Posted: October 11, 2014, 7:22 pm - IP Logged

       MikeinTexas, no I did not know that the IRS has a cap on charitable donations. Thanks again for keeping us up to date.

       I guess a CPA, a Certified Public Agent, would also be up to date with the IRS rules and regulations. 

        So, that makes an attorney, a CPA, and a CFP "Certified Financial Planner possible future hires when I have millions to protect.

      Lurking I am waiting for the NLDS to start. Go Giants ! LOL


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        Posted: October 11, 2014, 7:26 pm - IP Logged

        Taxes are the reason I'd renounce US citizenship for good and become a citizen of the Cayman Islands.  I'd pay my "exit tax" and then tell Uncle Sam "Fvck you!"

          mikeintexas's avatar - tx avatar-1.gif
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          Posted: October 11, 2014, 7:41 pm - IP Logged

          That is good info, but I would hope the donee will agree to pay the taxes.

          Sure, but they might be upset that your gift of five million will "only" be three million after taxes.  As you say, that's more money than they had before, but OTOH, they might resent that you, Mr. Moneybags, didn't want to pay the taxes.  Again, money often changes people, whether it's you w/ the new wealth or those around you.

            mikeintexas's avatar - tx avatar-1.gif
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            Posted: October 11, 2014, 7:54 pm - IP Logged

             MikeinTexas, no I did not know that the IRS has a cap on charitable donations. Thanks again for keeping us up to date.

             I guess a CPA, a Certified Public Agent, would also be up to date with the IRS rules and regulations. 

              So, that makes an attorney, a CPA, and a CFP "Certified Financial Planner possible future hires when I have millions to protect.

            Lurking I am waiting for the NLDS to start. Go Giants ! LOL

            Yup, I agree and I'd go even farther to say that you'd need second opinions...IOW, find a CPA to check the information of the first one, ditto w/ the attorney and CFP.  After all, if a doctor tells you that you only have six months to live and there's nothing that can be done, you'll want to consult another doctor, right?

            I understand why the IRS limits charitable deductions, but I'm of the mind that it's our money and what we legally do with it should be no one's business, particularly the govt.'s.   I also understand the gift tax but 40% is more than exorbitant, it borders on robbery. (ditto f/ income tax)  I mean....God only wants 10%, seems like the govt. should be able to get by on that as well.

            It was really hard being a Texas Rangers fan this year. <sigh>  Barring the last few years, they usually waited until June to swoon...this year they were out of the race not long after opening day.

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              Posted: October 11, 2014, 7:54 pm - IP Logged

              In my paper work, I have done math that the donee will pay the taxes and they will have to live with that.  And it may change, it depends on the jackpot amount.  I have to have a certain amount to live in Rancho Santa Fe, Ca. ( San Diego area).

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                Zeta Reticuli Star System
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                Posted: October 11, 2014, 7:58 pm - IP Logged

                No, not obligated. Take your finger out of that dike and you'd really be asking for it.

                'Obligated' can be a tough word.......there was a thread once about would hitting a jp make you obligated to quit your job and make way for someone who really needs it and that thread went down a rabbit trail of, "I ain't obligate to do nothin'...."

                Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                Lep

                There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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                  Posted: October 12, 2014, 9:55 am - IP Logged

                   Mikeintexas, you brought up the gift tax and I mentioned that the donee should pay the gift tax.  So, the following year the donee is taxed again on the same money plus their income under the income tax.  I think this is correct, do you agree?

                    CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
                    TX
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                    Posted: October 12, 2014, 11:16 am - IP Logged

                    Y/W. It wasn't a "correction" - as I said, your post had been posted while I was composing my own.  Those numbers change all the time;  for example, the total lifetime exemption was 5.25 million and from what I've read, was adjusted upward to account for inflation.  I've also read that $14k per yr. amt.  might be upped as well.   Did you know the IRS has a cap on charitable donations?

                    I try to consider all avenues but sometimes it leads me to think of the worst possibilities.  I love my family (well, most of 'em) and I think those I love also love me, but you never know what can happen when large amts. of money are involved.  People have been murdered for much less than $14k and I don't think I'd let anyone know how much and to whom I'm leaving in my will. I might very well tell my family that I'll keep giving them money as long as I'm alive, but the bulk of my estate will go to charity or into my foundation when I die...even if it won't.   Someone might be a little too quick to pull the plug if they thought they were going to get rich when I kick the bucket.

                    Mike..........I think in addition to the max allowed dollar figure, I would also consider doing this, should I choose to share even more...buying low dollar money orders(under $175.00) from a machine or $50 + $100 gift certificates from that big named store that begins with a  W..maybe the same amount from that orange store that has an H and a D in it or a gas card. Possibly gift certificates to various restaurants or any place that I know of that the people I give to will utilize throughout the year.
                    It would give me something to accomplish each month for a couple of  days, running around getting them  from various locations(not to draw attention to yourself) and mailing them out  Big Grin Santa

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                      Posted: October 12, 2014, 11:34 am - IP Logged

                      I wouldn't feel obligated to share, but I will with those I want to.  I highly doubt I will share with those who ask though.

                        Artist77's avatar - batman14

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                        Posted: October 12, 2014, 12:47 pm - IP Logged

                        From the IRS site:

                        Who pays the gift tax?
                        The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

                        On a related matter, this makes me still wonder how the Lottery in the Hot Lotto game can pay the withholding  tax (I assume the federal 25%) for the winner. I always thought this was not legal per the tax code.

                        J'aime La France.

                          LottoMetro's avatar - Lottery-024.jpg
                          Happyland
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                          Posted: October 12, 2014, 1:32 pm - IP Logged

                          On a related matter, this makes me still wonder how the Lottery in the Hot Lotto game can pay the withholding  tax (I assume the federal 25%) for the winner. I always thought this was not legal per the tax code.

                          The rules state that the “Advertised Grand Prize” amount is not the Gross Grand Prize Value, and further down they define “Gross Prize Value” as the prize value prior to deductions for applicable federal and state withholding taxes. My understanding is that the advertised prize is 0.75 times the actual (gross) prize. So a winner may walk away with $2 million (withholding paid), but the actual prize was $2,666,666.67 (4/3 times the advertised prize). It's basically a marketing scheme.

                          If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
                          If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

                          2016: -48.28% (13 tickets) ||
                          P&L % = Total Win($)/Total Wager($) - 1

                            Artist77's avatar - batman14

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                            Posted: October 12, 2014, 2:42 pm - IP Logged

                            The rules state that the “Advertised Grand Prize” amount is not the Gross Grand Prize Value, and further down they define “Gross Prize Value” as the prize value prior to deductions for applicable federal and state withholding taxes. My understanding is that the advertised prize is 0.75 times the actual (gross) prize. So a winner may walk away with $2 million (withholding paid), but the actual prize was $2,666,666.67 (4/3 times the advertised prize). It's basically a marketing scheme.

                            Thanks Lottometro.  Now that answer makes the most sense up to now.

                            J'aime La France.


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                              Posted: October 12, 2014, 3:27 pm - IP Logged

                              if I won the 500 Mil Powerball or Mega Million, I am not greedy ...

                              I will only keep 15 Mil for my own use and give the rest away ... 

                               

                              I dont need 500++ Mil 

                              I would keep just 15 Mil and give the rest to charity ... giving first preferences to single mothers in need ... 

                               

                              Because ???

                               

                              Not Because ... It is "Why Not" ???

                              15 Mil is more then enough for myself, What am I going to do with 500++ Mil ???

                              and I get to help out the needy of America as well ... 

                              And of course, I can walk away from this a very happy person as well ... 

                              Why Not ... Why Not ... 

                               

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