Powerball winner in our neighborhood!! (Tampa, Zephyrhills: living in, vs, shop)

[cy_flembeck]

Every single story about Lottery Winners fails to include the fact that the winners will have to pay a fed tax rate now of 39.6%. They ALWAYS use the Fed 25% withholding amount and say "after taxes". In this case she will owe the Feds another $55 Million. I am sure she will still survive but it would be nice to see reporters practice a little accuracy.

[City Guy997S]

Originally Posted by cy_flembeck

Every single story about Lottery Winners fails to include the fact that the winners will have to pay a fed tax rate now of 39.6%. They ALWAYS use the Fed 25% withholding amount and say "after taxes". In this case she will owe the Feds another $55 Million. I am sure she will still survive but it would be nice to see reporters practice a little accuracy.

Makes the story sound better!

Her biggest concern should be putting it in a trust (she should have done that prior to collecting) and after funding the trust she needs to live 3 more years (IRS look back period). IF she dumped the whole check into a trust today and dies within 3 years (a real possibility at age 84) then the trust is VOID and assets are taxed at 50% inheritance tax.....

Win 370 cash value, lump sum.
39.6% tax = 223.5mm net
dies without trust- pay another 111.75 in taxes
heirs get= 111.75
IRS got= 146.5 on the original win, 111.75 in inheritance tax = 258.25mm

[BucFan]

Never heard of a lookback period - just one more reason to laugh at our tax system and not feel sorry whatsoever for the IRS for the crap it is going through today.

[hokiepoke]

Looks like the IRS hit it big too.

[City Guy997S]

Originally Posted by BucFan

Never heard of a lookback period - just one more reason to laugh at our tax system and not feel sorry whatsoever for the IRS for the crap it is going through today.

Prevents death bed asset transfers to avoid inheritance taxes.

I have a very good friend that lost about 600k in extra taxes to the IRS since grandma only lived 22 months after forming her trust...trust was void, full inheritance tax like she never bothered with the trust. Old people sometimes get very stubborn and do stupid things and the IRS wins!

[kmarc]

Originally Posted by City Guy997S

Prevents death bed asset transfers to avoid inheritance taxes.

I have a very good friend that lost about 600k in extra taxes to the IRS since grandma only lived 22 months after forming her trust...trust was void, full inheritance tax like she never bothered with the trust. Old people sometimes get very stubborn and do stupid things and the IRS wins!

Sigh, you are so right, we went through absolute hell with an elderly relative and finances. Kept doing stupid crap that brought the IRS into the picture, we'd straighten it out and then it would start all over again. I think he was playing an attention-getting game and he kept accusing us of trying to get at his money (which is a common tactic among some of the more nasty-minded elderly who enjoy bedeviling their families, I have observed). The only entity getting at the money was the IRS. In his younger days, though, he pulled a similar stunt with another branch of the family that really didn't involve us, but he acted like a real jerk in an estate matter and caused those folks anxiety for years, so it wasn't just a matter of being elderly. It was a matter of being a jerk and it didn't improve with age.

[rezfreak]

Originally Posted by himain

Of course somebody who has limited years left in their life won..

She bought the ticket and won, quit being jealous. What does it matter how old she is? It doesnt.

[BucFan]

Her old house:


Her recently purchased home in JAX:



Zephyrhills Powerball winner buys $1.2 million home in gated Jacksonville community | Tampa Bay Times

[BucFan]

I'm really offended. Tampa-area lady wins biggest lottery in history and what does she do? Moves away from Tampa.

[jsun556]

I can't believe that house sold for 250K in 2001. Talk about gaining equity...