Aerogal
USMC 1983-1995
here's the bad news all you lottery winning dreamers......................
http://www.fool.com/school/taxes/1998/taxes980710.htm
http://www.fool.com/school/taxes/1998/taxes980710.htm
Tax info for 'If You Won.." readers
- Thread starter Aerogal
- Start date
If you won $500 million, why would you care if half of it went to taxes?
John Z
if you will
Well, I suppose that some people don't realize that you have to pay taxes on lottery. But they are real dummies. 
What I find particularly insidious are the non-cash prizes. For example, remember when the mighty benevolent Oprah gave away Pontiac Grand Ams to her entire audience? While everybody was crying, hopping about, and hugging each other, they didn't realize that they'd have to pay the IRS something like $6000+ for these cars valued at $20,000. Some gift, eh?
Similarly, there is some sort of "dream home" that HGTV gives away each year after spending months designing/building/outfitting it. Really cool house each year, and one lucky viewer wins it. Of course it is always valued at $1M+, which means that the winner would have to pay something like $300,00 or $400,000 in taxes on the value of the home. So each and every year the winner sells the house. What kind of a dream home is it if *none* of the winners can afford to keep it? Sure, I guess you could just sell your existing house and move to the dream home, but this assumes you are willing to live full time wherever this house happens to be that year.
Anyhoo, I feel that if you are giving away a non-cash prize, the only good way to do it is to also make part of the prize a cash portion that would cover the income tax.
Call me crazy.
What I find particularly insidious are the non-cash prizes. For example, remember when the mighty benevolent Oprah gave away Pontiac Grand Ams to her entire audience? While everybody was crying, hopping about, and hugging each other, they didn't realize that they'd have to pay the IRS something like $6000+ for these cars valued at $20,000. Some gift, eh?
Similarly, there is some sort of "dream home" that HGTV gives away each year after spending months designing/building/outfitting it. Really cool house each year, and one lucky viewer wins it. Of course it is always valued at $1M+, which means that the winner would have to pay something like $300,00 or $400,000 in taxes on the value of the home. So each and every year the winner sells the house. What kind of a dream home is it if *none* of the winners can afford to keep it? Sure, I guess you could just sell your existing house and move to the dream home, but this assumes you are willing to live full time wherever this house happens to be that year.
Anyhoo, I feel that if you are giving away a non-cash prize, the only good way to do it is to also make part of the prize a cash portion that would cover the income tax.
Call me crazy.
Larry Gude
Strung Out
That's the only...
...reason we kep having money for the next lottery. People win, show up for the cameras, get the tax bill and they're like 'Hey! Screw you guys! Give me back my $2! I ain't paying all them taxes!'
vraiblonde said:
...reason we kep having money for the next lottery. People win, show up for the cameras, get the tax bill and they're like 'Hey! Screw you guys! Give me back my $2! I ain't paying all them taxes!'
C
czygvtwkr
Guest
Well I would rather the government tax winnings that I did nothing to earn than what I work hard to earn...oh wait they already do that, never mind.