196M* for PowerBall Next Draw on Sat
126M* for Mega Next draw on Fri
*subject to increase if more tickets bought
Are we also thinking $10 this time, not just $5? With a max of $50 (5 shares).
Yeah, $5 if it's mega millions... $10 if it's powerball.because tickets cost $2 each, doesn't work well with an odd number like $5.
Besides $10 min gives us more chances.
because tickets cost $2 each, doesn't work well with an odd number like $5.
Besides $10 min gives us more chances.
Are we also thinking $10 this time, not just $5? With a max of $50 (5 shares).
Cash value for Powerball is $125 million, $96 million for Mega Millions.
You divide the payout by the number of shares bought.Assuming we win Powerball, how do we determine the value of a single $10 share (5 tickets @ $2 each)?
You divide the payout by the number of shares bought.
You're right on the money.example:
we win, after taxes 100 million
100 shares purchased by say 70 people
1 million for each per share
now we have someone who purchase 4 shares ($10), they get 4 million
we have someone who got 1 share ($10), they get 1 million
This is my loose public school math skills ... so correct me if I am wrong, haha.
If you're in by yourself, absolutely.
But when you've increased your chances of winning by 5 or 10, depending on how many people enter, the better bet is on the bigger pot.
Powerball is at $191 million x .66 = MM at $126 million.
I'm tempted to join, but keep in mind you can't just collect the winnings then distribute them. It's been a while since I looked this up - but I believe you have to assign the winnings to each person at the time of collection so the taxing of the winnings is done properly.
A number of years ago, my coworkers won a decent sum on the state lottery. NY limited the number of people who could be on the claim. (Didn't seem right to me, but that's what happened.) It created an accounting nightmare for them trying to figure out how to divy the money up, since everyone would have a different tax percent liability.
The MN lottery site says they withhold 25% of the prize for federal, and 7.25% for state tax. Doesn't matter what the individual's actual tax liability is. It's up to each person to settle up with the IRS on their own.
I wouldn't want anyone to know that I won the lotto, so I would just have vivi claim my share and then give me my cut in cold hard cash.
Except then you have to pay tax on the money as a gift, after he's paid tax on it as a winner. If he's already paid 25% on it (or whatever his federal tax rate is) out of your share of the winnings, then you're going to have to pay again.
Is it worth it?
Except then you have to pay tax on the money as a gift, after he's paid tax on it as a winner. If he's already paid 25% on it (or whatever his federal tax rate is) out of your share of the winnings, then you're going to have to pay again.
Is it worth it?
We will get a lawyer/tax guy to figure out the smartest choice for us.
I'm pretty LOL & completely lost on the tax ramifications if you guys won, say, $50k. Some people keep saying "after taxes." Those taxes are assigned to each individual. Now, let's say you have an agreement to simply reinvest the winnings during the next big powerball or whatever, and you won. And, a member who invested in the first place dies in the meantime. Would his family be eligible for his share in the estate?
But, that brings up a big question - what if you die before you win? Let's say, you win $20 million & die the next day. You pay the 45% or whatever it is on the $20 mil, then your estate is obligated to pay an estate tax on the remainder. BUT, given a 6 month window, there's a remote chance that someone in the pool dies. So, the share of the lottery winnings is passed to the estate; with a value low enough to escape the estate tax. BUT, then the pool wins.
I can't even imagine the case in tax court.
That's like 10,000 spoons when all you need is a knife