Posted on 06/05/2009 4:39:06 PM PDT by Justaham
Ummm...., the article said 88.5 million...
You said — So he gets 38% of the total sum. And I thought Uncle Sugar took a lump out of my paycheck.
—
That lottery value is future value, not present value, so you can’t use that figure. You take the figure that they give you for “present value” (i.e., immediate payout and not the one for 30 years later) and use that number...
There is a way around the taxes if you want to be devious. Give the unclaimed ticket to someone you trust in Canada who then goes on to claim the prize. Lottery winnings in Canada even if won in the US are tax free. There would be a witholding tax by the US but a smart accountant will be able to reclaim that at the first filing of taxes the following year in Canada due to the tax treaty between the two nations. I am available as a trustworthy person living in Canada...for a small fee of course. :)
Great story. Good for him.
I got an e-mail from a man in Nigera who was willing to do it for $25,000. I probably will go with him since he is the son of an ex-finance minister there.
....Bob
Well you just did. It gets really sick how people such as you really like to urinate all over good events.
Just what the hell kind of country is it where a guy wins 232 million and after taxes it’s down to 88 million?
I mean I know it’s won money and I know lump sums are less than if it’s over installments, but this is nuts.
my whole point was that winning the lottery is not necessarily a substitute for hard work, keeping your eye on a goal, and achieving things on your own.
in a real sense, participating in the lottery is an unconservative activity.
you will notice that I took no cheap shot at you, though many were available.
yep....hard to beat Nigerians for trustworthiness...I guess my career as a trustworthy type is over
Not quite. That 62% haircut is only about half taxes. The other about-half is the discounted present value of the 20-year (or 30-year in some lotteries) payout.
What you see here is compound interest in reverse (effectively), discounting the 20- or 30-year payout to present value.
The taxes are a different story.
On an advertised amount of $232 Million.
A private business would get shut down by the government if it advertised like the lottery does. Talk about bait and switch advertising. You think you are getting the announced hundreds of millions and walk away with 1/3 of the advertised amount.
Man do I hate the government policy of two systems of justice.
Folks, he took the lump sum payment versus the 30 year payout. So that cuts the 232mm to 116mm, then it is taxed. Lop off 35% give or take for taxes, and you end up with 88mm
35% is probably only part of the taxes. The feds want their money first. State and local governments will also claim their share. Probably bring it up to 45%-50% when it’s all over.
~~Happy story ......... PING!
Isn’t that from a movie? I’ve gone blank here
Seinfeld episode. Belonged to a proctologist but got delivered to Kramer by accident.
Oh right - thanks!! Haha
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.