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Lottery Jackpots And Tax Havens

Topic closed. 24 replies. Last post 7 months ago by TheMeatman2005.

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If you won a jackpot would you set up an account in a tax haven?

Yes [ 6 ]  [23.08%]
No [ 20 ]  [76.92%]
Total Valid Votes [ 26 ]  
Discarded Votes [ 3 ]  
Bondi Junction
Australia
Member #57242
December 24, 2007
1102 Posts
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Posted: April 10, 2016, 1:18 am - IP Logged

The article mentions twelve world leaders having these accounts including Putin and David Cameron. I wonder if Obama has one as well because he immediately held a press conference shortly after this news was revealed shifting blame on corporations. I also heard that Putin may have as much as 22 billion in these accounts alone which is a fraction of the rumored $200+ billion he has stolen from his country.

Have they checked the Kenyan banks?

 

What did he use for ID, his birth certificate?

We all get a lot out of lotteries!

    Think's avatar - lightbulb
    Marquette, MI
    United States
    Member #20541
    August 20, 2005
    705 Posts
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    Posted: April 11, 2016, 11:06 pm - IP Logged

    Federal taxes (25%) are deducted from winnings over $25,000, but the winners could owe up to 14% more when they file their tax return. But after that there is no Federal tax liabilities on those winnings.

    Based on some of the comments in the "after winning a jackpot" threads lots of people don't understand 25% in Federal taxes will be deducted from their winnings regardless of the number of tax lawyers they bring with them to lottery headquarters. Tax havens might come in handy after investing the after tax winnings, but basically useless for the initial prize.

    Wrong!  There could be circumstances where that could actually turn into  18.4% more if you aren't careful.

      Think's avatar - lightbulb
      Marquette, MI
      United States
      Member #20541
      August 20, 2005
      705 Posts
      Offline
      Posted: April 11, 2016, 11:09 pm - IP Logged

      What are the current rules on how much tax free interest you can earn?  Is it somewhere around  $118,000?

      I lost track of that around the time it was about $80,000

        RL-RANDOMLOGIC's avatar - usafce

        United States
        Member #59354
        March 13, 2008
        3967 Posts
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        Posted: April 12, 2016, 10:46 am - IP Logged

        Have they checked the Kenyan banks?

         

        What did he use for ID, his birth certificate?

        LMAO

        WinkWink wink, wink. https://www.youtube.com/watch?v=C3TB7Q6WjPQ

        rl

        Working on my Ph.D.  "University of hard Knocks"

        I will consider the opinion that my winnings are a product of chance if you are willing to consider

        they are not.  Many great discoveries come while searching for something else

        USAF https://en.wikipedia.org/wiki/Prime_Base_Engineer_Emergency_Force

          US Flag Trump / 2016 & 2020  

          RL-RANDOMLOGIC's avatar - usafce

          United States
          Member #59354
          March 13, 2008
          3967 Posts
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          Posted: April 12, 2016, 11:07 am - IP Logged

          Nice Concept: But: They Have No Soul!

          https://www.youtube.com/watch?v=HhWqXMMfRE4

          Bluegrass rules

          RL

          Working on my Ph.D.  "University of hard Knocks"

          I will consider the opinion that my winnings are a product of chance if you are willing to consider

          they are not.  Many great discoveries come while searching for something else

          USAF https://en.wikipedia.org/wiki/Prime_Base_Engineer_Emergency_Force

            US Flag Trump / 2016 & 2020  

            Avatar
            Kentucky
            United States
            Member #32652
            February 14, 2006
            7309 Posts
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            Posted: April 12, 2016, 9:20 pm - IP Logged

            Wrong!  There could be circumstances where that could actually turn into  18.4% more if you aren't careful.

            The 2015 top Federal tax rate is 39.6% and there are taxes in several states too. But 25% in Federal taxes will still be deducted regardless if the winner has an army of tax lawyers and it will be very difficult putting tax money already deducted into a tax shelter.

              Avatar
              LA Ca.
              United States
              Member #172750
              February 3, 2016
              88 Posts
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              Posted: April 12, 2016, 11:26 pm - IP Logged

              No need to offshore the money, there are multiple ways to protect the money here in the US.

                Think's avatar - lightbulb
                Marquette, MI
                United States
                Member #20541
                August 20, 2005
                705 Posts
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                Posted: April 13, 2016, 5:47 pm - IP Logged

                The 2015 top Federal tax rate is 39.6% and there are taxes in several states too. But 25% in Federal taxes will still be deducted regardless if the winner has an army of tax lawyers and it will be very difficult putting tax money already deducted into a tax shelter.

                Yes, the top federal tax rate is 39.6% but if you aren't careful you also might have to pay the 3.8% Obamacare tax on top of the 39.6%!

                14.6 + 3.8 = 18.4

                Still  a portion of your income would have to be taxed at 43.4% so all of it wouldn't have to be.  If you are not careful all of it would be taxed at 43.4%

                  Avatar
                  Kentucky
                  United States
                  Member #32652
                  February 14, 2006
                  7309 Posts
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                  Posted: May 6, 2016, 2:32 pm - IP Logged

                  Yes, the top federal tax rate is 39.6% but if you aren't careful you also might have to pay the 3.8% Obamacare tax on top of the 39.6%!

                  14.6 + 3.8 = 18.4

                  Still  a portion of your income would have to be taxed at 43.4% so all of it wouldn't have to be.  If you are not careful all of it would be taxed at 43.4%

                  "but if you aren't careful you also might have to pay the 3.8% Obamacare tax on top of the 39.6%!"

                  Do you think a tax accountant would forget to tell a multi-million jackpot winner without health insurance to get a policy to avoid  paying extra thousands in taxes?

                  Most to the free advice from the LP community suggests getting a tax accountant even before validating a ticket, but if a winner doesn't hire one, they could end up paying an even larger percentage.

                    TheMeatman2005's avatar - lightening
                    Brooklyn, NY
                    United States
                    Member #169723
                    October 29, 2015
                    877 Posts
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                    Posted: May 7, 2016, 12:51 pm - IP Logged

                    I barely trust my money in this country.   I would have a very difficult time trusting it offshore.

                    I Agree!

                    The Meatman

                    “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

                    Winning happens in a flash, Like A Bolt Of Lightning!  Patriot