1 billion dollar Mega Millions jackpot

#21

OEM parts indeed. More than a paperweight

#22

Great Scott!

#23

Nice sadly I actually have to do in store but at least I’m in a state that doesn’t tax you on the winning just have to pay the federal part

#24

I can see a space design for the Nebula capsule

#25

Annuity-$1,600,000,000
Lump-$904,900,000

Federal: ~ 37%
Louisiana: 5% State Tax

Annuity for 30 years
Your average net per year: ~$30,933,333

Pay off debts, buy new house and cars, give each member of my families (includes relatives) $1M. Extra cash from annuity goes into savings accts, 401k, roth and personal investment account (for giggles). Start a business? Charities for sure.

#26

@iroast the max amount you can give away free and clear without having to pay any additional tax on it is 15k. anymore than that you get hit with estate tax and they will owe taxes on it, and because you have so much money you will be hit with the highest estate tax rate which is 40%. So If your giving to your family I would recommend 15k to each member of the house as to avoid any additional tax for yourself and the receiving party.

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#27

Would paying off their debts be considered a gift?

#28

yes, its a taxable income. similar to if a person had debt relief they would owe taxes on the amount that was forgiven

#29

I’m willing to take the hit. Mortgage off of their backs would be a huge relief. After that, $15k per person as suggested :slight_smile:

#30

If the winner is one of us, he may adopt us all here please.
I am sure we will help him to get rid of all the money.

We will invest large amounts in powerbanks, speakers,
bulbs and in RoboVacs of course!

:joy::joy:

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#31

you will take the hit but so will they, they would be responsible for the taxes on you paying off their mortgage. not sure how you would get around it as the more you give the more taxes you pay

#32

Buy their houses and rent them out to them for $15k/yr? lol

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#33

From what I understand, it’s always better to take the annuity when the prize reaches this high - as in, there will be more money in the long run, plus you’ll be protected from yourself and won’t be able to spend everything. I know seeing all those numbers has an effect on people’s minds, but I can’t see an argument for not taking the annuity being logical. Most people can pay all their debts and buy a house and gift relatives and loves ones and finally taking that long trip around the world with any annuity on a prize this big. I mean, it’s a 40 million annuity, you can do all those things in the first year ans still have plenty money in your account. It’s like winning a regular lottery yearly for 30 years.

Also, taxes: https://twocents.lifehacker.com/how-much-youll-actually-take-home-from-the-900m-mega-m-1829841029

You can’t? We can in Canada - for Canadian lottery, of course. Also, no tax on lottery winnings over here! :money_mouth:

If I was the one winning this, I would take the annuity, instantly retire, ask all my family and friends still in Brazil who want’s to live in Canada and provide the financial means for them to be here until they can sustain themselves on their own, buy a home, put some money aside for my child’s education, and, eventually travel the world. But Canadian lotteries never get this high. We do have a prize where you’ll have 1000$ per day for the rest of your life, which won’t mount up to a billion, but will provide all the comfort you could want in life.

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#34

@elmo41683
What if they won the money in a card game? What about then?

Here, if you win money, you don’t pay tax on that, but if you use as a annual wage n saved it, then you’d pay tax on using as an income. lol

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#35

Same here. No tax on lottery winnings, but interest, regardless of the source, is interest and therefore taxable. Also, money gifts are not taxable, regardless of the amount - as in, the person receiving the gift won’t have to declare it as revenue. The contrary is also true, though: any money I give away that is not for registered charity is not tax deductible, I can’t declare it as expenses. And it applies only to money; gifting assets, including investments, must be declared and thus are taxable, even if they come from inheritance - inherited cash doesn’t have to be declared, but assets do.

So, in this scenario, if I gift money to my parents, this money is not taxable, they can do whatever they want with it, including paying their debt. If they invest this gift, any earnings will be taxable. If they buy assets with the gift, including a house, the asset is taxable. In the end, there are always taxes.

#36

I figure my chances of becoming a billionaire about the same whether or not I buy a ticket :joy: so I only bought one.

I really wish that you weren’t required to publicize your name if you win. You’d probably need to hire someone to fend off requests for money from the entire world.

In the highly unlikely event that I were to win a large prize, I’d not tell a soul, spend a long time finding a good tax attorney and accountant and then wait a long time to claim it. You’d have to set up some sort of trust or something (I’m guessing) for all your first degree relatives just to keep them off your back?

#37

Set up at least 2 trust funds. The first one is the primary firewall.

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#38

Since you have some time to claim the prize, you can technically have a third-party, like a financial adviser, claim it for you - as long as you have an ironclad contract with said person - and have that person be the public face of the new billionaire in town. Since, with such a large sum, it is advised to hire a financial adviser anyway, you can just get a head start before even claiming the prize.

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#39

I can take part! Juhu!

Shall I?
If I win we ALL start an incredible party here in Munich: Hofbräuhaus!!!
This will last for some years!!! :joy:

3 Likes
#40

Don’t sign the ticket right away though! A signed ticket might result in your name being released even if you form a trust or a corporation to claim the jackpot. Open records laws may make it impossible to hide your identity too.