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i didn't realize it costs $2 per ticket when i bought one today. btw, so what prize do you win when you only get the red ball? i've never played it before till tonite. here is what i see at their site:
$4 for matching the red ball without buying the multiplier. Since you have $2 tickets, you don't have the multiplier.
"Lottery benefits"? What is this? Are you saying that individuals and business entities are taxed differently on lottery winning, or is it something else?
You mean that states my have a progressive rate structure, or are you talking about different rates for LLC income versus individual income?
I am pretty familiar with both taxes and lotteries, but what you're saying isn't making a lot of sense. I'm not saying that you're wrong, but it isn't clear what you are saying. Can you clarify it for me?
No problem. The lottery tax laws are intentionally and needlessly complex. Individuals are subject to a different of rules than organizations like businesses. Some states impose a progressive tax rate for individuals based on income. It was all a massive headache when I was going through my options.
You formed an LLC to accept a lottery payment? I call B.S.
You may have an LLC for a business enterprise however it MAKES NO SENSE to form one for lottery winnings. Lottery winnings are "other income". Name one benefit of forming a pass through business entity over a trust.
So, your LLC passes 300,000,000 dollars to you and you pay the full rate. You die the next day. Your heirs pay tax on EVERY PENNY above the inheritance tax threshold. Great plan.
Keep the money in the LLC? Why? Is it an ongoing business? What is the point? A trust can pass on after tax money to individuals tax free.
And in some states you may be taxed considerably less if you have a low enough income. Like 2.5% instead of 7.7% for example. What does that have to do with it? "Low enough income"? How is 300,000,000 dollars considered "low income".
If you win consult a competent tax attorney.
Funny you're debating a person here with a handle of "Taxphd".....
An LLC can create any number of trusts it wishes but a trust is very limited in what it can do for you. The same LLC I started to claim my winnings is now the foundation for numerous businesses, trusts and charitable organizations. LLCs are intentionally flexible but trusts are specialized, hence why you should use both. Trusts are great to distribute or store sums of money family and such, but putting all of your money in a trust is a great way to find yourself stimied with restrictions and limitations.
I wouldn't doubt it. Human nature is to pick numbers that have a special meaning, like birthdays. Too bad that keeps most of those numbers at 31 and below (excluding year), so people don't realize they're hamstringing themselves by self-selecting out of the full range of lotto number possibilities.
That was a mouthful, hopefully it makes sense.
Maybe a different way to look at it is if the lotto was for numbers 1-10, but you only pick numbers 1-5 each time. You're not going to win as often as those that select from the full 1-10 range.
Picking at least one number above 31 is one of only three useful lottery strategies that I know of. It doesn't increase your chances of winning, but it reduces the chances of sharing a prize if you do win.
I bought a quick pick and then added a multiplier so there goes the confidence in winning as multiplier doesn't get anything more than what it has anyways.
There goes my $3 as well to the winner and hopefully that's me.
Picking at least one number above 31 is one of only three useful lottery strategies that I know of. It doesn't increase your chances of winning, but it reduces the chances of sharing a prize if you do win.
Though splitting a prize as large as this wouldn't be so bad. The press would hound 3 or 4 people in different states a lot less than 1 person. With a jackpot this size the press will probably be all over the winners for quite some time after they come forward.
No problem. The lottery tax laws are intentionally and needlessly complex.
I don't know what you're talking about. Lottery income isn't subject to special rules. As Wartrace said earlier, "Lottery winnings are other income." It doesn't get special treatment.
Quote:
Individuals are subject to a different of rules than organizations like businesses.
Yes, but for the vast majority of LLC's, that is a non-issue as the LLC is a pass-through entity.
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Some states impose a progressive tax rate for individuals AND BUSINESSES based on income.
FIFY.
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It was all a massive headache when I was going through my options.
I'm sure that it was, but you still haven't provided ANY explanation of what you are talking about.
This is something that everyone says but doesn't really understand just how true it is. I won a large sum in the lottery several years ago and escaping the constant badgering and greed became my #1 priority. I had to move to the other side of the country and change my name and Social Security number.
You can change your SS number? Not as much as a doubt, but more of as I never thought to do that.
I always thought a trust was the best way to collect the winnings, but that was from the famous Rotten.Com article.
If you were to win again, what would you do different this time around? The only main plan I have would be have some sort of legal entity win the prize, then have that money split into separate entities for me and my wife (protecting each other from each other). I don't plan to anything with the money for the first year except move to a city where the people are richer than me and work on self-improvement (get in shape, learn about finance, learn another language, ect).
I know there would be people saying that I would miss out on a year's worth of investments, but with $300 million in the bank, I think I've increased my net worth nicely for the year.
As for the freeloaders, once I've been found out, I'll just move on to the next rich enclave....
Everything changes, really. Your relationships with your family change. When people you know find out they treat you differently because they want something from you. When people you don't know find out they try to get at your money like their scruples flew out the window. If you keep living like you used to you'll feel trapped in an imaginary world because that life is over and you can't go back to it. If you try to live the life of a 1%-er with the upper crust you'll quickly find that you probably don't fit in with that world. It's extremely difficult to strike the balance required to enjoy your winnings, avoid stressful or dangerous situations caused by the greed of others, and not go broke in the process.
You move far away.... Day one send them all lovely cards a with a nice check and adieu
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