View Full Version : Lottery
Homeslice
06-05-2009, 08:35 PM
So a guy in South Dakota just won the lottery for $232 million, but after taxes he only gets $89 million. That's like a 62% tax. Since the maximum income tax rate is only like 39%, what other taxes could they be hitting him with? Some special "gambling tax" or some bs like that?
I bet he took the lump sum, in which case he looses about 1/2 the money right away.
The total lottery amount is based on you "investing" a majority of the money in the government over a number of years, and they pay you off each year with a payment for the period of time set. Over the course of the payout you earn interest on the money the Gov holds. If you take the lump sum you dont make the interest.
Then after that he gets hit with taxes.
Tsunami
06-05-2009, 08:57 PM
did he actually win the full 232mil? It might be 232 million if he decided on an annual payout vs a lump sum which is a percentage of that and then got taxed on the lump sum.
say he gets 115k lump sum, and about 40% gets hit by uncle same, so he ends up near 70 mill. Fuck that is still a good time.
I don't care if I won 100 million and ended up getting only 100 thousand.
Amber Lamps
06-05-2009, 09:40 PM
I think for a very brief second I would be "WTF where's the rest of my money?" but then the realization of $89,000,000 would sink in and I would be just fine with that!:lol:
shmike
06-05-2009, 10:14 PM
I bet he took the lump sum, in which case he looses about 1/2 the money right away.
The total lottery amount is based on you "investing" a majority of the money in the government over a number of years, and they pay you off each year with a payment for the period of time set. Over the course of the payout you earn interest on the money the Gov holds. If you take the lump sum you dont make the interest.
Then after that he gets hit with taxes.
say he gets 115k lump sum, and about 40% gets hit by uncle same, so he ends up near 70 mill. Fuck that is still a good time.
That's it.
Lump sum is the present value of the dollars. It is usually about 1/2 of the quoted amount.
Lottery withholdings are usually 28%, sometimes 31%, some as low as 25%, which means there will still be a SUBSTANTIAL bill when you file your taxes the following year.
This guy was the largest winner in history to not have to split the pot with anyone else. :whatwhat:
cleaned up all the bad info
then if you unfortunately live in a state with state taxes, yey for FLA and TENN for not having that shit, you add more to the bill.
101lifts2
06-06-2009, 01:39 AM
cleaned up all the bad info
then if you unfortunately live in a state with state taxes, yey for FLA and TENN for not having that shit, you add more to the bill.
Yeah Liberal CA is at 10 something, but the jews wanna push it to 12. something. fuckers.
MikeSP1
06-06-2009, 01:41 AM
Even still, he made off with 89 mill. That's not something to pick you nose at.
Take 1m and have a house built the way you want it. Then take maybe 50k and buy a nice car as a commuter. 130k and buy a DB9, then take 25k and buy whatever bike you could ever want and you'd still more money than you would need.
Amber Lamps
06-06-2009, 02:24 AM
Yeah Liberal CA is at 10 something, but the jews wanna push it to 12. something. fuckers.
Yeah those Jews are always passing fucking laws! Bastards!
101lifts2
06-06-2009, 02:40 AM
Yeah those Jews are always passing fucking laws! Bastards!
Actually jews are liberals. lol
CrazyKell
06-06-2009, 08:20 PM
No tax on lottery winnings in Canada. :rockout:
Amber Lamps
06-06-2009, 08:55 PM
Actually jews are liberals. lol
Hey I didn't say they weren't....:idk: I was just joking about his use of antisemitism. Hell, I didn't know that the Jews ran the gov't in California but I guess that makes some sense.:idk:
Adeptus_Minor
06-06-2009, 08:57 PM
Even still, he made off with 89 mill. That's not something to pick you nose at.
Take 1m and have a house built the way you want it. Then take maybe 50k and buy a nice car as a commuter. 130k and buy a DB9, then take 25k and buy whatever bike you could ever want and you'd still more money than you would need.
Kinda my thoughts on it.
And yeah, I'd take the lump sum.
Sure, you get hit hard on the pay out, but then it's YOURS.
You invest it (or sock it away) however you want.
No relying on the gubment to take care of your money for you.
Homeslice
06-07-2009, 12:01 AM
Yeah Liberal CA is at 10 something, but the jews wanna push it to 12. something. fuckers.
Jews?? Why would they want to raise taxes? And besides there are not nearly as many Jews here as there are in NY or FL.
LeeNetworX
06-07-2009, 12:44 PM
That's like a 62% tax. Since the maximum income tax rate is only like 39%, what other taxes could they be hitting him with?
Obamatax?
Amber Lamps
06-07-2009, 01:08 PM
Obamatax?
Oh that must be it... hey I just watch a show about the IKA, you wouldn't have been on it hmmmm? :lol::lol::lol::lol:
LeeNetworX
06-08-2009, 08:01 AM
Oh that must be it... hey I just watch a show about the IKA, you wouldn't have been on it hmmmm? :lol::lol::lol::lol:
No, I'm not Swedish, nor do I work for them.
askmrjesus
06-08-2009, 08:05 AM
No, I'm not Swedish, nor do I work for them.
:lol:
JC
Papa_Complex
06-08-2009, 08:39 AM
If it isn't enough to buy a large island or a small Central American country, then I don't want it.
Rsv1000R
06-08-2009, 09:34 AM
You have to pay Fed, State, and Local taxes.
That $89M isn't after all taxes, If the lump sum payout is $115M, Fed taxes alone are going to be close to $40M.
Amber Lamps
06-08-2009, 10:38 AM
You have to pay Fed, State, and Local taxes.
That $89M isn't after all taxes, If the lump sum payout is $115M, Fed taxes alone are going to be close to $40M.
Um nope, I just watched it on the news last night, it's 88.5 after all taxes.
shmike
06-08-2009, 10:41 AM
Um nope, I just watched it on the news last night, it's 88.5 after all taxes.
See my previous post.
$115M would put you in the 35% bracket, which equals $40.25M in Federal taxes plus any applicable state, local, etc.
They may have withheld less than that but it doesn't mean he won't owe them come 4-15-2010.
Edit: just noticed, The $115M number came from Trip, not a reputable source. :lol:
The $88.5 may be a true net number but that would mean his lump sum payout was far greater than $115M.
Rsv1000R
06-08-2009, 10:46 AM
Um nope, I just watched it on the news last night, it's 88.5 after all taxes.
You do the math on 35% then.
Plus in Ohio I pay iirc ~7% state taxes, and I also pay another 2% to the village I live in. That puts my total taxes at ~44%.
Amber Lamps
06-08-2009, 10:46 AM
See my previous post.
$115M would put you in the 35% bracket, which equals $40.25M in Federal taxes plus any applicable state, local, etc.
They may have withheld less than that but it doesn't mean he won't owe them come 4-15-2010.
Edit: just noticed, The $115M number came from Trip, not a reputable source. :lol:
The $88.5 may be a true net number but that would mean his lump sum payout was far greater than $115M.
Well I got it from the news which isn't necessarily a perfect source of information either!:lol: They were making a big deal out of the fact that he's 23 and lives on a large ranch. They had his picture all over the screen and even video of his house and property! There is no way I'd let them do that! I'd sneak in, get my loot and sneak out if it were me!
Rider
06-08-2009, 10:47 AM
$89 mil is still a lot of money. A conservative investment with a return of only 5% will earn you $4.45 mil a year. I can live comfortably on that and never have to touch the principle.
shmike
06-08-2009, 10:49 AM
$89 mil is still a lot of money. A conservative investment with a return of only 5% will earn you $445K/ a year. I can live comfortably on that and never have to touch the principle.
Ninja edit FTW.
Many people would be glad to have a return of "only" 5% over the last few years. :lol
Amber Lamps
06-08-2009, 10:49 AM
You do the math on 35% then.
Plus in Ohio I pay iirc ~7% state taxes, and I also pay another 2% to the village I live in. That puts my total taxes at ~44%.
35% of what? I don't know what the lump sum pay out was... do you? The total was 232 million, normally I believe that the lump sum penalty is half or maybe less...:idk:
Rider
06-08-2009, 10:54 AM
Ninja edit FTW.
Many people would be glad to have a return of "only" 5% over the last few years. :lol
Too many zero's so early in the morning. LOL
The last few years yes but if you look at many mutual funds over their lifetime they are well above 5%.
Rsv1000R
06-08-2009, 10:55 AM
35% of what? I don't know what the lump sum pay out was... do you? The total was 232 million, normally I believe that the lump sum penalty is half or maybe less...:idk:
No I don't, none of the reports said. But if it was paid out at 50% for the lump sum, he's going to have a big tax bill next year.
Amber Lamps
06-08-2009, 10:57 AM
Too many zero's so early in the morning. LOL
The last few years yes but if you look at many mutual funds over their lifetime they are well above 5%.
Hell, I remember when a money market certificate would get you around 10 points... of course a good car loan was 13% at that time as well....:lol:
Amber Lamps
06-08-2009, 11:02 AM
No I don't, none of the reports said. But if it was paid out at 50% for the lump sum, he's going to have a big tax bill next year.
Well, I think they take it out off the top. At least the way they were explaining it on the news...:idk: The way it sounds, and I don't know this for a fact, if he were to just "sit" on this money now. He shouldn't have to pay further taxes as it's not "new income" next year. Once again, I'm not 100% sure but as long as he doesn't DO anything with it, he's cool....:lol:
Homeslice
06-08-2009, 11:03 AM
35% of what? I don't know what the lump sum pay out was... do you? The total was 232 million, normally I believe that the lump sum penalty is half or maybe less...:idk:
If he takes the lump sum instead of the full payout schedule, I don't see how the gov't could argue that he owes tax on the full amount, seeing how he never received it.
shmike
06-08-2009, 11:12 AM
If he takes the lump sum instead of the full payout schedule, I don't see how the gov't could argue that he owes tax on the full amount, seeing how he never received it.
He wouldn't.
You pay taxes on money "earned" (can't think of proper term).
If his payout was $115M, that is what he'll pay taxes on, not the $232M.
Rsv1000R
06-08-2009, 11:18 AM
Well, I think they take it out off the top. At least the way they were explaining it on the news...:idk: The way it sounds, and I don't know this for a fact, if he were to just "sit" on this money now. He shouldn't have to pay further taxes as it's not "new income" next year. Once again, I'm not 100% sure but as long as he doesn't DO anything with it, he's cool....:lol:
Depends how much they took. But next April he has to file, and if they didn't take enough to cover that amount he'll have to pay the difference.
Amber Lamps
06-08-2009, 11:53 AM
Depends how much they took. But next April he has to file, and if they didn't take enough to cover that amount he'll have to pay the difference.
I agree with this but I doubt that it'll be a case of they took too little money from him....:lol::lol:
pauldun170
06-08-2009, 12:50 PM
... but the jews wanna push it to 12. something. fuckers.
:dribble:
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