The OFFICIAL Powerball and Megamillions thread:

[usdlaw]

You can only give away $14K w/o it being taxed.


And if you don't pay the taxes on that money then the IRS would surely come after those you gave the money to.


Someone has to pay the taxes, it's usually the gifter, if not then it's the giftee. If not you and your friends would likely go down for felony tax evasion.


Enjoy Club Fed.



.

Somewhat True. You can gift unlimited individuals 14k each per yr without it cutting to your estate gift tax limit of around 5 million in your life. After the 5 million the gifter is taxed 40% for every dollar over the limit. The cap will rise in the future because it accounts for inflation

 

[swendro]

I just want this **** to end so I no longer feel compelled to buy a ticket every few days and feel like a jerk off being the 100th person the cashier has sold a ticket to that day.

 

[usdlaw]

Will you enlighten me on this gift tax? Is it nationwide? You saying I can only give away 5 milly without being taxed?

Part of me was thinking I would send anonymous cashiers checks to the people I want to give to. Now you got me thinking I need to take out all cash like Money May and just ship my gift in boxes.

I havent taken a tax law course in awhile but Ill try to help you on these questions. 

It is a federal tax law so it is nationwide. 

You can give 14k/yr to an unlimited amount of people without cutting into your gift estate excemption of around 5 M. 

I would just hire individuals and pay them accordingly. That way, the money they "earned" is taxed as their ordinary income. Be prepared to hire "chefs", "dog walkers", "sneaker custodians" etc. 

I would not do anything illegal if I were to win cuz the Feds will have their eye out on the winner/s for any improprieties. 

Not a tax lawyer but let me know if you have anymore questions. Things like this intrigues me

 

[grimeyy]

No one on NT is gonna win 

 

[bostoiah]

^ bruh wtf

 

[tero]

I havent taken a tax law course in awhile but Ill try to help you on these questions. 
It is a federal tax law so it is nationwide. 
You can give 14k/yr to an unlimited amount of people without cutting into your gift estate excemption of around 5 M. 
I would just hire individuals and pay them accordingly. That way, the money they "earned" is taxed as their ordinary income. Be prepared to hire "chefs", "dog walkers", "sneaker custodians" etc. 
I would not do anything illegal if I were to win cuz the Feds will have their eye out on the winner/s for any improprieties. 

Not a tax lawyer but let me know if you have anymore questions. Things like this intrigues me

 

[Fozz]

How exactly does this work? I write a personal check or a cashiers check to each person for X amount of money over 14k. How does the gov't know that I did that?

Not too sure, man. It's just what I read on the IRS site. But I'm sure if it's straight cash, you're all good! lol

 

[rillo561]

Wait there's a gift tax? 

Definitely, and it's pretty high.

 

[shatterkneesinc]

I hope someone wins

I dont want to keep dropping money on this

 

[the qbz]

Man dont be the person who didnt put in for the office pool...... generations of salty feelings

 

[usdlaw]

 
Wait there's a gift tax? 

If I'm walking down the street and I drop 10G's in a homeless guys lap the government expects a cut of that? 

You should be good. But if you drop $14,001, the alphabet boys are knockin on your door. 

 

[xxpizzo]

Someone wins tonight

odds on 5D are

Powerball jackpot : -900

No Powerball jackpot : +600

 

[3miyasaki3]

Someone wins tonight

odds on 5D are

Powerball jackpot : -900
No Powerball jackpot : +600

Saturday on 5d no jackpot was +350 wish I would've sprinkled some on it haha

 

[tero]

http://www.nydailynews.com/news/nat...oars-1-5b-wednesday-drawing-article-1.2494007

Theres a quote in this article from a Manhattan-based certified public accountant it says “You shouldn’t spend it all at once because there are still more taxes to pay at the end of the year — about $100 million,”


is that true? will you be taxed at the end of the year even after the 25% federal and state tax witholdings?

 

[usdlaw]

http://www.nydailynews.com/news/nat...oars-1-5b-wednesday-drawing-article-1.2494007

Theres a quote in this article from a Manhattan-based certified public accountant it says “You shouldn’t spend it all at once because there are still more taxes to pay at the end of the year — about $100 million,”


is that true? will you be taxed at the end of the year even after the 25% federal and state tax witholdings?

Yes, because you are in the top percentage bracket as a wage owner (anything over 413k/yr), you will be taxed 39.6%. You would have to pay more than the 25% in which the lottery is withholding. 

As a CA resident, the 1.5 B prize will be $561,720,000 after taxes, give or take (930M X .604). There are other states with state tax and there are cities that charge muncipality tax, NYC being one of them.  

 

[shatterkneesinc]

Tax withholding doesnt mean the taxes are paid. They are holding it in case you run away. Taxes liability is due the following year when you file your 2016 taxes and report all your income, expenses losses etc.

 

[tero]

Yes, because you are in the top percentage bracket as a wage owner (anything over 430k/yr), you will be taxed 39.6%. You would have to pay more than the 25% in which the lottery is withholding. 

As a CA resident, the 1.5 B prize will be $561,720,000 after taxes, give or take (930M X .604). There are other states with state tax and there are cities that charge muncipality tax, NYC being one of them.  

oh i see. so one last question fam - if you are in an office pool. and it is split between 10 people.. how does that division work exactly? is everyone getting an even amount? or is one person getting the jackpot and paying everybody else 14k a year to avoid taxes

 

[HEATHEN]

Man dont be the person who didnt put in for the office pool...... generations of salty feelings

Facts.

http://www.daytondailynews.com/news/news/local/piqua-lottery-winners-seek-summary-judgment/nM3rx/


These fools tried to go after their co-workers in court but dude who ran the pool kept EVERY receipt from previous pools and had proof dudes were NOT regular players.



They lost, and one dude who won kept showing up to work just to stunt on 'em fools .

 

[Based Jesus]

http://www.nydailynews.com/news/nat...oars-1-5b-wednesday-drawing-article-1.2494007

Theres a quote in this article from a Manhattan-based certified public accountant it says “You shouldn’t spend it all at once because there are still more taxes to pay at the end of the year — about $100 million,”


is that true? will you be taxed at the end of the year even after the 25% federal and state tax witholdings?

Uncle Sam too damn greedy

 

[oh you mad]

Your Lucky Day from Daniel Brown on Vimeo.

Saw this on NT several years back.. lol

 

[HEATHEN]

http://www.nydailynews.com/news/nat...oars-1-5b-wednesday-drawing-article-1.2494007

Theres a quote in this article from a Manhattan-based certified public accountant it says “You shouldn’t spend it all at once because there are still more taxes to pay at the end of the year — about $100 million,”


is that true? will you be taxed at the end of the year even after the 25% federal and state tax witholdings?

Hell yeah bruh, 40% federal tax bracket, not including state taxes.


After I believe what? 400K you're subject to that.


https://www.usamega.com/powerball-jackpot.asp


Use this site to see the total damage.

 

[HEATHEN]

Somewhat True. You can gift unlimited individuals 14k each per yr without it cutting to your estate gift tax limit of around 5 million in your life. After the 5 million the gifter is taxed 40% for every dollar over the limit. The cap will rise in the future because it accounts for inflation

Bruh, nobody is going to limit handouts to 14K.


That's the entire point. Cats in here talmbout blessing friends and family with MILLIONS of dollars.


That's money that the gifters are liable for.

 

[usdlaw]

oh i see. so one last question fam - if you are in an office pool. and it is split between 10 people.. how does that division work exactly? is everyone getting an even amount? or is one person getting the jackpot and paying everybody else 14k a year to avoid taxes

No problem, man. Studying for the bar so these questions, while distracting, is keeping me sharp during my breaks.

If it's a pool, then everyone has a legal claim to the money so one person is not getting the jackpot and paying everybody else 14k, thus, gift exceptions would not apply here.

As far as the equal dispersion, there would be a decision whether to take the lump sum or the the 30 yr annuity and split accordingly. Each individual should have a copy of the ticket (photo copy would do) to have claim of the money. 

As for the taxes, each individual will have more than 413k (if single, diff amount if married), so they will be taxed at 39.6% ordinary income. 

It would be wise to hold on to a large portion of the money for the purposes of investment. Any gains held for more than a yr will be taxed at a capital gains rate of around 20%. Any long term capital gains losses can offset your tax liability. 

Sorry for the long explanation to your question. 

 

[lobcity]

NT good luck bros!

 

[usdlaw]

Bruh, nobody is going to limit handouts to 14K.


That's the entire point. Cats in here talmbout blessing friends and family with MILLIONS of dollars.


That's money that the gifters are liable for.

I competely agree with you.

If the winner stays in his or her lane and takes into account tax repercussions, this applies to them. 

For the people who remain uneducated of their finances after winning and have no financial advisors, they'll be another tragic story.