Lotto and taxes....

[mrvette]

I hear some 85 y/o woman won the lotto....1.5 billion bux.....so she has to pay something like 600 megs in taxes.....

900 million left over, so for conversation....say 9 heirs she splits it up with....family, obviously.....so

do they have to pay income taxes on that gift/inheritance?? I say yes they do....

so taxes on 100 mega bux.....figger 6% to the state, and how much to the FEDS?? I would think 50 million.....or 50%.....

so am I rong???

:dance::issues:

[DAB]

your math is off

you get the full 1.5B if you take it over 30 years. if you take a lump sum, you get about 56% of the full amount, about 860M in this case. it's taxable income, so the IRS gets 37% of it, and South Carolina gets another 7% of it. so she nets about 481M after taxes.

leaving it to heirs results in estate taxes (giving it away before death results in gift taxes imposed on the giver, so it is the same thing either way).

net result: gov gets most of the money eventually.

best bet: spend it, give it away to family without triggering gift taxes, give it to charity.

don't buy lottery tickets when you are 85. :slap:

[Mike Mercury]

http://2.bp.blogspot.com/-lKuvaiLkg1I/Vo1357u52pI/AAAAAAAAK6g/JoOTDDZyH_c/s400/tony%2Bmeme%2Blottery%2Bcan%2527t%2Bwin%2Blose%2Bdon%2527t%2Bplay%2Btaxes%2Btax.jpg

[DAB]

as i noted in this thread

https://www.thevettebarn.com/forums/showthread.php?t=117606

at the end of the day, .gov ends up with about 91% of the money bet eventually.

so of course they want you to pay more taxes, duh. :slap:

at least if you go to a casino, the house only takes 2-8% on average. but with the lottery, they take 91% on average.

but don't you dare try to compete with .gov by opening your own casino.... :kick:

[Defib1961]

But, but, but...........The government is here to help us! :leaving: