Will Latest Group Lottery Winner Be Affected by Taxes?
There is nothing quite like winning the lottery. In almost all cases lotto winners go from rags to riches overnight. There is definitely a thrill and exhilaration that comes with becoming an instant multi-millionaire. Who wouldn’t want to win the lottery? Hold that thought. Winning the lottery comes with several possible catches that could lead to tax trouble. In fact, for some lottery winners, the tax fallout is a real nightmare.
The tax headache can be especially big when several people decide to purchase lottery tickets together, as a group, which is exactly what happened to some recent lottery winners in Tennessee. Twenty co-workers won a $420.9 million Powerball jackpot in November, with the lump sum payment being $254 million. Split evenly, each winner will receive $12.7 million before taxes.
However, the first question that must be answered is could this group be considered a real partnership? The 20 winners have been pooling their money together for eight years, so it’s a legitimate question. It’s also an important one as it could make a big difference in how they report it and their overall tax bill.
Another question is could their agreement be viewed as a trust? If the IRS considers it a grantor trust it’s simply taxed as a flow-through. However, if it is a more complex trust that is taxed the same as a corporation the tax headache can be huge and expensive. So, what should you do if you become an instant millionaire? If you ever end up choosing the right numbers, the smartest thing to do is talk with a qualified tax professional before you even collect the money. This will help you avoid several possible headaches.
http://www.forbes.com/sites/robertwood/2016/12/01/20-plant-workers-420-million-powerball-win-cleverly-misses-tax-mess/#3a6f0e555f29
Leadership Skills: How to Be a Successful Communicator
Leadership Skills: How to Be a Successful Communicator Author: Jacqueline Moore As a business leader, one of the most important leadership skills you’ll ever demonstrate is knowing how to communicate. When you think about it, most business leadership consists of communication of one sort or another. You hold meetings with staff or board members or…
Six Important Managerial Skills For Successful Leadership
Six Important Managerial Skills For Successful Leadership A mark of a good leader is to be able to provide consistent motivation to his team encouraging them to attain excellence and quality in their performance. A good leader is always looking for ways to improve production and standards. Here are six management skills to be an…
Breaking the 4 Minute Mile
Breaking the 4 Minute Mile By Bree Bowman Eagle Scout Speech 6/30/09 For more than 100 years, runners tried to break the 4 minute mile. It was considered the “Holy Grail” of track and field. Many said it couldn’t be done. In fact, doctors wrote articles in medical journals explaining why it was physically impossible…
Vampire Meetings and How to Slay Them
Vampire Meetings and How to Slay Them By Peg Kelley Meetings can be like mythical vampires – sucking the life out of intelligent and creative people. And sucking the funds out of businesses. Unfortunately, there are too many of these meetings in business today. A UCLA study said the “typical” meeting includes nine people. If…