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just curious

Topic closed. 2 replies. Last post 14 years ago by matrixchick.

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Estonia
Member #4217
April 1, 2004
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Posted: April 1, 2004, 11:58 pm - IP Logged

Q: How can I reduce the taxes on a major lottery prize?

A:

While we cannot advise players on taxes or the use of their individual prizes, we suggest you contact an attorney, tax preparer, the Internal Revenue Service (1-800-424-1040), or your state Department of Revenue.  As always, a good financial plan will always make your money go further.

 

And there is my question: what can a good lawer do? As much as I know, Uncle Sam gets he`s 25% cut + you have to pay your state tax? Ok,  financial adviser may "play" with your other taxes (real estate, income etc.) But if you will win $100M is this "penny" worth of paying huge attorney bills?

Basicly, how and how much could financial adviser reduce income tax for big jackpot?

    plnwebguy's avatar - binary

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    February 11, 2004
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    Posted: April 3, 2004, 2:18 pm - IP Logged

    Financial advisors can't do much to reduce current taxes, but they could help you reduce future taxes.  Some investments are tax deferred and that's probably what they would mainly help out with.  How much help would depend on the investments.   A good lawyer would help out with the legalities of the investments, as well as foundations or charities one wants to set up.  Plus they would help protect your money when someone decides to sue you over something. 

    plnwebguy

     

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      April 4, 2004
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      Posted: April 4, 2004, 2:24 pm - IP Logged

      Here's the thing that I keep wondering. A lot of powerball winners say they have hired financial advisors/planners and before claiming the ticket. What do these people do? Call financial planners and ask them what they should do with 50 million in cash? Seriously... how would you even begin to decide if you don't have a planner or advisor? Some of these winners were living pretty averagely before they won, so you know they probably didn't have advisors/planners.

      As far as lawyers, I think a tax attorney might be a good choice. They could probably shield you from some of the taxes.