When I hit the Lotto... - PeachParts Mercedes-Benz Forum

Chris Bell · #1 01-07-2009, 08:20 PM

I have got to get me one of these.
http://www.hatchandsons.com/pages/280sl/

davidmash · #2 01-07-2009, 10:34 PM

Sign me up for one too.

MS Fowler · #3 01-08-2009, 07:12 AM

Not that I play with any regularity, but here is my idea...
Before claiming the ticket, I would form a non-profit, charitable corp, and then fund the non-profit with the Lotto proceeds.
I think that would eliminate the taxes on the winnings.

From that point, it becomes simple non profit exploitation:
I become the Chairman at some ridiculous salary. My wife, children and close friends become paid members of the Board. Our charter would require all members of the board to attend the two meetings of the corp each year. These meetings would be held at various locales of interest to the charitable purposes of the Corp--places, like New York, Palm Springs,London, Paris, Mardrid, Barbados, etc, and, of course, all the expenses involved would be paid by the corp. The purpose of the meetings would be to allocate the disbursement of the charitable funds, which would probably be small in comparison to the administrative overhead, but oh well, thats how it works.

el presidente · #4 01-09-2009, 01:14 PM

Quote:

Originally Posted by MS Fowler

Not that I play with any regularity, but here is my idea...
Before claiming the ticket, I would form a non-profit, charitable corp, and then fund the non-profit with the Lotto proceeds.
I think that would eliminate the taxes on the winnings.

From that point, it becomes simple non profit exploitation:
I become the Chairman at some ridiculous salary. My wife, children and close friends become paid members of the Board. Our charter would require all members of the board to attend the two meetings of the corp each year. These meetings would be held at various locales of interest to the charitable purposes of the Corp--places, like New York, Palm Springs,London, Paris, Mardrid, Barbados, etc, and, of course, all the expenses involved would be paid by the corp. The purpose of the meetings would be to allocate the disbursement of the charitable funds, which would probably be small in comparison to the administrative overhead, but oh well, thats how it works.

Not to rain on your parade, but to qualify for having proceeds disbursed in the name of an entity (even a charitable one) from lotto officials - with no deductions, you must have had the foundation/llc/entity set up BEFORE even having purchased your ticket.

Can't do it after the fact - they'll withhold the statutory amount (usually 28%) for feds PLUS state income taxes.

Good luck!

Hatterasguy · #5 01-09-2009, 01:20 PM

To bad they withhold it. If they let you and your accountant handle it, and I won say the $200m jackpot I would:

1.Transfer to swiss bank account and convert to Euros.
2. Transfer to South African Charity.
3. Purchase home in Europe.
4. Buy plane ticket.
5. Tell the IRS to pound sand.

el presidente · #6 01-09-2009, 01:23 PM

Quote:

Originally Posted by Hatterasguy

To bad they withhold it. If they let you and your accountant handle it, and I won say the $200m jackpot I would:

1.Transfer to swiss bank account and convert to Euros.

Not any more. Even UBS is dumping American banking customers using Swiss accounts to appease the IRS.

Nowhere to hide these days....that's a good thing.

Hatterasguy · #7 01-09-2009, 01:25 PM

Caymen Islands than...lots of places to hide.

It would be an American opening a swiss bank account. It will be a South African Charity.

MS Fowler · #8 01-10-2009, 01:10 AM

Quote:

Originally Posted by el presidente

Not to rain on your parade, but to qualify for having proceeds disbursed in the name of an entity (even a charitable one) from lotto officials - with no deductions, you must have had the foundation/llc/entity set up BEFORE even having purchased your ticket.

Can't do it after the fact - they'll withhold the statutory amount (usually 28%) for feds PLUS state income taxes.

Good luck!

I kinda figured it was too good of an idea not to have occurred to someone else, and been tried.

Matt L · #9 01-08-2009, 11:01 AM

That might work, but you would have to be very careful. And of course, your "ridiculous salary" would be taxed and probably at the same marginal rate.

Where you win on taxes is allowing your entire family to have income from it, so whatever you pay them is not all taxed at the top marginal rate.

The trips would probably work as you expect.

MS Fowler · #10 01-08-2009, 07:19 PM

Quote:

Originally Posted by Matt L

That might work, but you would have to be very careful. And of course, your "ridiculous salary" would be taxed and probably at the same marginal rate.

Where you win on taxes is allowing your entire family to have income from it, so whatever you pay them is not all taxed at the top marginal rate.

The trips would probably work as you expect.

Now that I've given it away, there will be a law to prevent it.