hno:
I don't think those people pocketed 281,000,000, just saying
It's true, a lot of people who won smaller jackpots blew it all. I see people blow money all the time, and some of them came into money in their 60's and have nothing left at age 70
Nothing from a financial perspective that I can think of, doesn't save on taxes either (federal anyhow, can't speak for all 50 states). Florida does not have an income tax and it repealed a tax it used to assess on investments.
It must be more of a legal issue than a financial issue. Control of assets, maybe during one's life or maybe after death or disability. Protection from creditors, although I think that's much less of an issue when you have that type of money, I'm assuming you're still going to establish a pretty healthy income stream for yourself to live on which can be tapped by creditors.
I might be missing something, but it might just be an opportunity for some attorney to benefit from a windfall
Nothing from a financial perspective that I can think of, doesn't save on taxes either (federal anyhow, can't speak for all 50 states). Florida does not have an income tax and it repealed a tax it used to assess on investments.
It must be more of a legal issue than a financial issue. Control of assets, maybe during one's life or maybe after death or disability. Protection from creditors, although I think that's much less of an issue when you have that type of money, I'm assuming you're still going to establish a pretty healthy income stream for yourself to live on which can be tapped by creditors.
I might be missing something, but it might just be an opportunity for some attorney to benefit from a windfall
I agree with you it probably doesnt reduce his taxes on this lump sum payout. But I googled Llc and taxes and found this:
"An Llc business doesn't pay income taxes on its profits, rather any profits or losses are passed through to the owners personal tax returns."
Sounds like he might be starting a business and gets personal tax breaks next year with it.
Maybe, but he would have to establish a business purpose. If 60% or more of it's income is derived from passive activities, like investment income, then it's taxed at the maximum rate
I do have to concede two things
1) I have no experience with such a "Personal Holding Company", only know the laws exist
2) I have no idea how the new tax bill changes PHC's, or if it does
Many of his comments sound as if they were written by an attorney, I think at least two people struck gold last week
And if he hires a similar thinking accountant, maybe one referred by the attorney, he's going to pay $ 25,000 for a return that takes an hour to prepare (again, I've seen this shit first hand)
LOL, you're absolutely correct Willie.
On the LLC thing. I believe that he is going to make it a single owner and use any income gains as passthrough so he can avoid double taxation. LLC’s enjoy pass-through taxation benefits where the owners report their own share of the LLC’s loss or profit on their individual tax return. So, let's say he buys a movie theater, the profits go to the LLC and since he is the owner, does an individual tax return avoiding taxes at corporate and individual levels (if I'm understanding this correctly). Also, if he does that, he can deduct his health insurance (and make his family employees and deduct theirs) as well as any contributions to a retirement plan.
On the LLC thing. I believe that he is going to make it a single owner and use any income gains as passthrough so he can avoid double taxation. LLC’s enjoy pass-through taxation benefits where the owners report their own share of the LLC’s loss or profit on their individual tax return. So, let's say he buys a movie theater, the profits go to the LLC and since he is the owner, does an individual tax return avoiding taxes at corporate and individual levels (if I'm understanding this correctly). Also, if he does that, he can deduct his health insurance (and make his family employees and deduct theirs) as well as any contributions to a retirement plan.
