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Mega Millions/Powerball/Idiot Tax

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ScriptOhio;770770; said:
This basically is true since the expected return is greater than the cost. If you bought one ticket for every combination it would cost $175,711,536 dollars. If you had the only winning ticket you would make $174,288,464.
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The cash option is 212,574,710. After federal tax of 25% and state(Ohio) tax of 6% that leaves you with only a loss of 29,034,986.10. If you take the 22 annual payments, for the full 350 million, well, I don't want to calculate the amount of interest that you'd pay on a $175,711,536 loan.
 
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tedginn05;770722; said:
I played it Tuesday, didn't buy a ticket for Friday. I'll probably buy a few tickets this week.

It made me think, if I win this, how much this will change my life.
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If I win, I'm going to pay a bunch of thugs to tie up Thump in the parking lot of a Taco Bell, then pay the Taco Bell to hand out free food all damn day long...but none for Thump.

Have I mentioned that I have a cruel streak?
 
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IronBuckI;771386; said:
The cash option is 212,574,710. After federal tax of 25% and state(Ohio) tax of 6% that leaves you with only a loss of 29,034,986.10. If you take the 22 annual payments, for the full 350 million, well, I don't want to calculate the amount of interest that you'd pay on a $175,711,536 loan.
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You're right, but it doesn't make any difference unless of course you know someone stupid enough to lend me $175,711,536. In which case I would just take the money, forget about the lottery, disappear to an un-named country, and live like a king for the rest of my life. :biggrin:
 
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PrincetonBuckeye;770739; said:
Unfortantely we don't have Mega here in NC...just Powerball...its at $120 million though.

I can see a spin off thread w/ a poll on what you would do if you won...:tongue2:
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Too bad, I am in California and just bought my ticket. If no one wins tonight I will buy us a couple of tickets for the drawing on Friday....before my flight home:biggrin:
 
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IronBuckI;771386; said:
The cash option is 212,574,710. After federal tax of 25% and state(Ohio) tax of 6% that leaves you with only a loss of 29,034,986.10. If you take the 22 annual payments, for the full 350 million, well, I don't want to calculate the amount of interest that you'd pay on a $175,711,536 loan.
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Actually it is even worse than that in reality - for your final tax burden will by majority be in the 35% bracket - then on top you have the 6% State tax.

Filing jointly (which is the most favorable case, by a smidgen) the total tax burden is over $87 Million, nearly 41% of the winning. Which would leave you with $50 Million less than your investment.
 
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BuckeyeMike80;773427; said:
Even if you take the lump sum you end up getting it in payments....I think....I'll have to look...
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Wrong I think on that score. Otherwise you would have a damned near untenable position come April 15th of the ensuing year. Taxes - or more specifically the feared future impact of estate taxes - are precisely the main reason why many winners choose that lump sum option.

Also more and more often you see or hear of large lottery winnings going to a "trust". Or put another way, no leeches need know the winners name).
 
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