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Hypothetical Situation

Topic closed. 7 replies. Last post 13 years ago by winningdraw.

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Bemidji MN
United States
Member #3340
January 13, 2004
110 Posts
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Posted: February 18, 2004, 7:12 am - IP Logged

Let's say that a lottery jackpot has reached $100 million with a $50 million cash option. Two people pick the winning numbers and thus would share the jackpot. One chooses annuity, the other cash. What does the lottery do then? How would they determine the amounts to be paid? Can anyone enlighten?

Rick

"Announcing your plans is a good way to hear God laugh"

    Jake649's avatar - scene sunovermountains.jpg

    Canada
    Member #2673
    November 2, 2003
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    Posted: February 18, 2004, 7:14 am - IP Logged

    They would give the first person $25 million cash and give the second person an annuity of $50 million.

    Good luck,
    Jake


      China
      Member #3032
      December 16, 2003
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      Posted: February 18, 2004, 7:45 am - IP Logged

      why?

        twisted's avatar - underground
        New Jersey
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        Member #2376
        September 25, 2003
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        Posted: February 18, 2004, 8:47 am - IP Logged

        Because if both of them wanted annuity then they both would get $50 (annuatized) each.  But if one person wants the cash option, the cash option is rougly 1/2 (i know its a little more than half) of the annuatized amount, so the person who wants cash, gets 1/2 of his share of the annuatized amount and hence $25 million (before taxes).

          giotonia's avatar - 01 cash-girl-cartoon.gif
          NYC
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          Member #3706
          February 13, 2004
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          Posted: February 18, 2004, 9:28 am - IP Logged

          I'll do that math.

          Example 215 million for 2/20                                 

          215/1.685 will be the cash around 127

          Take the 127x.25 is 31.75

          127-31.75= 95.25

          Then what ever your state tax is NY 7.7%

          95/.077 is 7.315

          95-7= 88

          So if any wins in NY look forward into getting around 88mil. Probably 90mil

           

          Also If you do share it with any divide 215 by # of winner and do the rest

            twisted's avatar - underground
            New Jersey
            United States
            Member #2376
            September 25, 2003
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            Posted: February 18, 2004, 1:30 pm - IP Logged

            here you go giotonia.  So you dont have to do the math next time.

            http://www.biggamelottery.com/jackpot.htm

              giotonia's avatar - 01 cash-girl-cartoon.gif
              NYC
              United States
              Member #3706
              February 13, 2004
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              Posted: February 18, 2004, 2:20 pm - IP Logged

              Ok I feel like an A. LOL. I thought the NY tax is 7.7% right. It went up.

              Also I should buy my tickets from NJ no tax


                United States
                Member #3757
                February 18, 2004
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                Posted: February 18, 2004, 3:11 pm - IP Logged

                giotonia:

                I live in NY as well, I wish the tax was still that low.  I have the luxury of living near the border with Canada, so I can just cross over the border and getting the same goods less expensive, less taxed.  I wish I could do the same with the lotto tickets....