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Lottery Pool - Tax Implications
Posted on 2/19/14 at 3:50 pm
Posted on 2/19/14 at 3:50 pm
I was put in charge of the lottery pool at my office. We have roughly 20-25 people who play once a week (twice a week when the lump sum amount hits nine figures).
In Louisiana, as a pool/group, what would be the most tax efficient way to claim these winnings?
I'm trying to research it here at work, but most of the sites are blocked and searching from my phone is a pain the arse.
My initial thought would be to create some sort of partnership or corporation and have the money dispersed to us as members.
Surely we wouldn't be forced to choose someone to accept the prize in full, pay taxes on it, then disperse the winnings among the other members of the group (thus incurring a gift tax) right?
In Louisiana, as a pool/group, what would be the most tax efficient way to claim these winnings?
I'm trying to research it here at work, but most of the sites are blocked and searching from my phone is a pain the arse.
My initial thought would be to create some sort of partnership or corporation and have the money dispersed to us as members.
Surely we wouldn't be forced to choose someone to accept the prize in full, pay taxes on it, then disperse the winnings among the other members of the group (thus incurring a gift tax) right?
2
Posted on 2/19/14 at 3:51 pm to dcrews
Best thing to do would be not worry about winning, cause it will not happen. Save you the time and effort of researching it.
Posted on 2/19/14 at 3:53 pm to OnTheBrink
quote:
Best thing to do would be not worry about winning, cause it will not happen. Save you the time and effort of researching it.
Well, this, but if you want an actual answer when you show up to Lottery HQ to claim your 400 million, they'll divvy it up for you and your buddies.
Posted on 2/19/14 at 3:54 pm to Walking the Earth
quote:
Walking the Earth
That's what I was thinking. That or hire a lawyer to handle all that shite. No need to form a partnership or anything else, I wouldn't think.
Posted on 2/19/14 at 3:54 pm to dcrews
Don't you worry your little head off. The LA Lottery corporation takes the state and federal cut before they give you the real check on anything over $650.
Posted on 2/19/14 at 4:20 pm to Walking the Earth
quote:
but if you want an actual answer when you show up to Lottery HQ to claim your 400 million, they'll divvy it up for you and your buddies.
That seemed too easy, so I just dismissed it as being a possible answer
It's highly unlikely we win (although we hit 4 numbers a couple weeks ago, which I never thought we'd do), but it's office comradery and makes for interesting discussion.
Posted on 2/19/14 at 4:53 pm to dcrews
That ticket allows you to dream and that by itself is worth something.
Posted on 2/19/14 at 4:59 pm to LSUnGA
quote:
That ticket allows you to dream and that by itself is worth something.
It's become an entertainment expense honestly. The discussions that occur every week among all of us coworkers is worth the $2
Posted on 2/20/14 at 6:34 am to eng08
quote:
Don't you worry your little head off. The LA Lottery corporation takes the state and federal cut before they give you the real check on anything over $650.
This isn't true. They don't withhold taxes for prizes less than $5000.00. They give you a form W-2G to report your winnings.
Posted on 2/20/14 at 10:22 am to RiverRoadTiger
Well I was mistaken then, but that is what the lottery lady told me at the counter.
Yes they issue you a W-2G but they also take their cut of the winnings first. They estimate the taxes to be held and take them out of the winnings.
If you win $1 million you will not get a check for it. You can take a photo with the giant fake check, but the physical check will be for about 700k.
Yes they issue you a W-2G but they also take their cut of the winnings first. They estimate the taxes to be held and take them out of the winnings.
If you win $1 million you will not get a check for it. You can take a photo with the giant fake check, but the physical check will be for about 700k.
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