100k to win...

[smuthg]

IMO he should pay taxes on the 90,000.00 from NBC as ordinary income (which I believe with his $900k win puts him in the top bracket of I think 35%), I think he can treat the first $10k from NBC as a gift (and tax free)... So, once you get that tax situation squared away, I think he's paying 20% on the winning from the track (which is better than his ordinary income rate of 35%)... unless of course he's got $900k in losing tickets The best thing for this guy is that he lives in TX with no state income tax, so winning $800k on national TV shouldn't matter to his home state.

[Port Conway Lane]

Originally Posted by smuthg

IMO he should pay taxes on the 90,000.00 from NBC as ordinary income (which I believe with his $900k win puts him in the top bracket of I think 35%), I think he can treat the first $10k from NBC as a gift (and tax free)... So, once you get that tax situation squared away, I think he's paying 20% on the winning from the track (which is better than his ordinary income rate of 35%)... unless of course he's got $900k in losing tickets The best thing for this guy is that he lives in TX with no state income tax, so winning $800k on national TV shouldn't matter to his home state.

That sounds right.

[PeteMugg]

I thought if it was over a certain amount the IRS would step in to get their share regardless of how much was wagered. I'd bet they will be greeting him at the windows.

[Port Conway Lane]

Originally Posted by PeteMugg

I thought if it was over a certain amount the IRS would step in to get their share regardless of how much was wagered. I'd bet they will be greeting him at the windows.

I'm not positive but I always thought that they (the tellers) only ask for ID if it is a reportable winner (over $600 on a wager that paid 300-1 odds.) If the amount collected is over 5k they remove 20% to immediatly pay the irs.

In this guys case he brings the suitcase (or check) home and then calls his tax consultant to see how much to pay the irs quarterly for the remainder of the year so he doesn't incur any interest penalties.

[pucknut]

exactly the irs will be there with both hands out
now all he needs to do is get programs and losing tickets that total 900k and its tax free

[AeWingnut]

Originally Posted by PeteMugg

I thought if it was over a certain amount the IRS would step in to get their share regardless of how much was wagered. I'd bet they will be greeting him at the windows.

don't you mean thier fair share

[PeteMugg]

Originally Posted by AeWingnut

don't you mean thier fair share

Haha, well, I wouldn't call it fair.