powerball lump sum after tax

News just announced it is up to EIGHT HUNDRED MILLION DOLLARS.

RUN to the store and buy a ticket.

Hurry!

btch with cap C wrote:

In CA you'd only have 50k left after they steal your winnings via taxes and turn them over to invaders from the South of the former border and to zio criminals like Diane Feinstein. lol

And what's left over barely covers the cost of the aluminum foil for all your helmets.

According to the Forbes article linked earlier, CA is one of about 8 states that don't impose a state tax on lottery winnings. As a resident of California, I can't believe they aren't grabbing their 14% of every lottery winning in the state.

"Now back to the not so small matter of tax. Of the 44 states participating in Powerball, six–Florida, New Hampshire, Tennessee, Texas, South Dakota and Washington —don’t have a state income tax. Two others, Pennsylvania and California, exempt lottery winnings from their income taxes, although California requires that you buy the winning ticket in-state."

xtra cheese on my Whopper wrote:

The lump sum payout from Powerball for a jackpot of $700 million is $428.4 million.

The Federal tax rate will be the same for everyone. Welcome to the 0.001%

Your State and Local taxes will vary. The State portion is dependent upon which state the ticket was PURCHASED. Many states do not tax lottery winnings but local authorities may.

A single filer has a tax rate of 39.6% when adjusted gross income exceeds $413,200.

Therefore, if you are in a state with no tax on lottery winning, you will receive approx $428.4 million x 0.604= $258.8 million in your pocket

And realize that if $258 M returned just 5% consistently over the years in the stock market, that you would "earn" $12.9 M gross every year. You would have a really hard time spending that much money if you have even retard-level intelligence.

Therefore, a large share of Americans would be in trouble.

So, you don't like to pay taxes? Then just donate it to charities, less your cost of the ticket. You people are probably the same ones who complain about the "1%". Well welcome to their world.

JACKPOT NOW AT 800 MILLION!

Be willing to bet the winner will be a MUSLIM, or illegal... Just to beat down the American Psyche even more.

I'm not a tax expert on managing that sum of money. But I think I could give it a good try. First of all, you can elect to take the $700 million over 20 years I believe. I would do that. Than, with that money you can easily afford a high quality business manager and lawyer.

Not sure exactly how it would be set up but you can do something like an S-corp that in turns owns LLCs or maybe corporations. Within that framework you start buying businesses by pouring in money to generate upfront losses that you can deduct, but which generate revenue streams in the future. For example, start a restaurant by buying and renovating that. Thanks to accelerated depreciation you can take it all as an expense. Hire a great kitchen staff with upfront signing bonuses and lots of fringe benefits. Or think of starting a upscale gym. Buy property and pay upfront to put in a pool with hydroworx treadmills and other gadgets.

In any case the idea is to perpetually defer income taxes by creating losses now but revenue in the future. The tricky thing is that gambling winnings itself has to be reported on your income tax return. There is no way around it. So you have to be able to get those business losses on your individual return. But I believe that can be done.

For more normal wealthy people deferring income is easier because usually they have their wealth in a corporations which they don't owe taxes on unless they "realize" that wealth. Zuckerberg is a prime example. He had to pay taxes on billions of income for a couple of years because he exercised stock options or got unrestricted stock. But in years when that doesn't happen he could just as easily not pay any taxes at all even though he is billions of dollars wealthier. The great thing about it is that he largely controls when and how he pays taxes.

I'll take the money, thanks very much.

note that, if there are expected to be 2.44 winning tickets, if you select a random number and win, the expectation value for the number of other winners is still 2.44 (because they are independent of you), so to find the expected value of your ticket you need to divide the winnings by 3.44

boo hoo hoo who wrote:

The "logic" here is astoundingly bad.

When I got hired for my job...they told me my salary. they didn't include taxes...those liars. When I go to the store, the price says 99 Cents...I pay $1.06...liars.

Lottery winnings are taxed.

Congrats to you for being proud of being lied to.

Sorry, being lazy (or optimistically, less experienced) here, but is the lump-sum not simply the present value of the 20y of future cash flows? If it's not, how much of a discount do they take for lump-summers? Thanks.

anyone skeptical no one won? Is this thing rigged? How could all the tickets not be bought?

about 300 million possible combinations so it is possible that a fairly big chunk of numbers went unplayed. If you take a Quick Pick it comes from a randomizer program with no expectation to issue unique numbers before it repeats giving out a number and of those who input there own numbers birthdays are a common source of the numbers so 1 to 31 get a lot heavier play that 31 and higher.The idea that putting in a a bet to win a Billion bucks can cost as little as a Jefferson Bill boggles my mind. A billion dollars---how much is that in potato chips?

they wanted no winners? wrote:

anyone skeptical no one won? Is this thing rigged? How could all the tickets not be bought?

NO ONE WON TONIGHT, NEXT JACKPOT MINIMUM OF 1.3 BILLION!

its reaching the point where someone could buy all the number combos..and make a profit! lol There are 292.2 million possible combinations of the five white balls and red Powerball.

calculate away

Taxes or not it would still be more money that I've ever seen before in my life.

Big Winner wrote:

Sorry, being lazy (or optimistically, less experienced) here, but is the lump-sum not simply the present value of the 20y of future cash flows? If it's not, how much of a discount do they take for lump-summers? Thanks.

I believe it's payable over 29 years. In any event, they are now quoting $1.3 billion as the prize which means a gross lump sum of about $800 million with an after tax pay-out maybe $450 million. With the odds of winning 1 in 292 million and with a ticket price of $2, it still wouldn't make sense to buy up all 292 million possible combinations. That would cost you $584 million and would net you $450 million if you were the sole winner, less if anyone else hit.

You douchebag Runners are all a bunch of idiots who really should never move up from the serf class.

First the taxes levied on your winnings depends not only on the state you love but where you purchased your ticket, so no you're not going to suddenly be a Floridian for literary tax purposes.

Second it's not setting an S-Corp or using tax deferring schemes that will keep you rich, those tools are already available to the serf class and you're all still poor. It's all about having the purchasing power to set up structures outside the US and use complicated vehicles to change the taxibily of earnings.

Third, after reading this thread and others I can see why no one of you will ever succeed in life, even if you won a $10 billion literary prize.

#earnednevergiven