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Originally posted by: BAGIANT
Since it's such a small town, she probably knows who let her jump in front of him. IF she gives him anything....even 10 mill, he would only have to pay about 4 mill in taxes and have 6 million free. I mean she's going to net about just under 200 mill, so what's 10 million to her?
I'm pretty sure that the jackpot they quote is the cumulative amount over the 20 to 30 or so years that they pay it out. If she elects to be paid in a lump sum, which she probably should based upon her age, then she is going to get much less and will be hit with a 39.6% federal rate plus 3.8% medicare surtax on most of it or 43.4% (no income taxes in Florida). If she was to give 10 million away, it would be a gift and not taxable income to the person she gives it to. She would have to pay a 40% gift tax on any taxable gifts above 5.25 million, the current lifetime exclusion.
Even if she has great intentions, it would not make sense for her to do this.
Sorry to go tax accountant on you.