Powerball

sonocativo said:
for what state? powerball says differently
you lose 2/3 of the winning if not more to taxes, Federal, state and others
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I checked Powerball website and they don't mention 40%.

See my post #87 - I stand correct.

39.6% for federal income tax and 5% for state income tax (my state).

It means lose about half of money, but annuity is better option to reduce the tax liability.
 
FYI, federal income tax bracket and the percent of tax will be depends on amount of money in range.

http://www.bankrate.com/finance/taxes/tax-brackets.aspx

For example, up to $9,275 is taxed at 10%

then... $9,276 to $37,650 is taxed at 15%

then... $37,651 to $91,150 is taxed at 25%

then... $91,151 to $190,150 is taxed at 28%

then... $190,151 to $413,350 is taxed at 33%

then... $413,351 to $415,050 is taxed at 35%

then... $415,051+ is taxed at 39.6%

Not all money are taxed at 39.6% for once - it is progressive tax.
 
Foxrac said:
I checked Powerball but annuity is better option to reduce the tax liability.
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yes because you pay taxes yearly on what youre paid, so you also gain interests from the unpaid amount that the lottery holds...
now the ticker, you die, now you have the death tax, estate taxes that uncle sam comes to get from your money before anyone else gets to touch it... ouch...really, youre dead and still owe taxes.

People dont realize all the taxes involved, you never get the full 1.5 billion, its just an achor..... lucky to walk away with a clean 250 Million. Facts
 
It is 825pm here and the CA lottery website is jammed and I cannot get in.....so gonna wait till morning.....
 
Foxrac said:
You posted same link as I posted #100.

You need to stop defending yourself over inaccurate information.

Sorry, I stand correct about tax - I posted same article before you posted.
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Did you actually read it or stop in the middle?

Im still looking for the one I had earlier...
 
sonocativo said:
yes because you pay taxes yearly on what youre paid, so you also gain interests from the unpaid amount that the lottery holds...
now the ticker, you die, now you have the death tax, estate taxes that uncle sam comes to get from your money before anyone else gets to touch it... ouch...really, youre dead and still owe taxes.

People dont realize all the taxes involved, you never get the full 1.5 billion, its just an achor..... lucky to walk away with a clean 250 Million. Facts
Click to expand...

The annuity is 30 years - if you could live for 30 years before lottery money running out.

You mention about interest and estate tax are complicated - difficult to understand.

I understand about federal income tax bracket, but not estate or complicated tax.
 
Foxrac said:
FYI, federal income tax bracket and the percent of tax will be depends on amount of money in range.

http://www.bankrate.com/finance/taxes/tax-brackets.aspx

For example, up to $9,275 is taxed at 10%

then... $9,276 to $37,650 is taxed at 15%

then... $37,651 to $91,150 is taxed at 25%

then... $91,151 to $190,150 is taxed at 28%

then... $190,151 to $413,350 is taxed at 33%

then... $413,351 to $415,050 is taxed at 35%

then... $415,051+ is taxed at 39.6%

Not all money are taxed at 39.6% for once - it is progressive tax.
Click to expand...
look at state, and gift... then CAPITAL GAINS
 
sonocativo said:
Did you actually read it or stop in the middle?

Im still looking for the one I had earlier...
Click to expand...

Yes, I read articles to find info about tax.

I have question - if you opt in lump sum so it means tax will be based on $930 million or $1.5 billion?
 
sonocativo said:
look at state, and gift... then CAPITAL GAINS
Click to expand...

The state income tax is smaller, also some states like California, lottery isn't taxed at state level.

What about gift tax? Nothing mention on NBC - they say about income tax.

Capital Gains? for investing and profit from high stock?
 
Foxrac said:
Yes, I read articles to find info about tax.

I have question - if you opt in lump sum so it means tax will be based on $930 million or $1.5 billion?
Click to expand...
on the 930 yes, there is more to it than just that... basically you end up after everything about 250-280 million... its crazy to think, you take a massive hit no matter which way you go.
 
Foxrac said:
The state income tax is smaller, also some states like California, lottery isn't taxed at state level.

What about gift tax? Nothing mention on NBC - they say about income tax.

Capital Gains? for investing and profit from high stock?
Click to expand...

I found about gift tax.

Triggering the gift tax is easy to do, with such a big prize. The IRS allows you to gift up to $14,000 per recipient each year, tax-free, with bigger gifts eating away at your lifetime exemption of $5.45 million. (Gifts to a spouse are unlimited.) Exceed that, and the gift tax is a flat 40 percent.
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http://www.cnbc.com/2016/01/11/tallying-the-big-tax-bite-of-a-14b-powerball-win.html

If I decide to pay off my parent's mortgage will count as gift tax?
 
Foxrac said:
The state income tax is smaller, also some states like California, lottery isn't taxed at state level.

What about gift tax? Nothing mention on NBC - they say about income tax.

Capital Gains? for investing and profit from high stock?
Click to expand...
capital gains is hidden, but they will nail you at tax time for any intrest you get unless its rolled back in and never touched... its not in these stories, but the tax advisor will warn you ( Ive sold stocks so I know the scoop on capital gains)
 
sonocativo said:
on the 930 yes, there is more to it than just that... basically you end up after everything about 250-280 million... its crazy to think, you take a massive hit no matter which way you go.
Click to expand...

Oh... interesting...

If no one claim capital gains nor gift tax so it means you lose about half of money.

For 930 millions, it means $929,584,950 are taxed at 39.6%
 
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