If you won a progressive jackpot
August 31st, 2014 at 6:59:24 PM
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If you won a jackpot in Vegas that paid out $1199 every year over 20 years would that give you a at least a grey area to escape taxes? I'm thinking it's not exactly legal, but yet makes it easy to avoid the tax payment. Or is a w2 still generated?
I was thinking of the gaming industry coming up with a scheme to offer customers non-taxable but high jackpots.
I was thinking of the gaming industry coming up with a scheme to offer customers non-taxable but high jackpots.
Sanitized for Your Protection
August 31st, 2014 at 7:02:50 PM
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Quote: rxwineI'm thinking it's not exactly legal...
There's an understatement!
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
August 31st, 2014 at 7:07:01 PM
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Quote: DJTeddyBearThere's an understatement!
Someone once purposely came up with $1199 gimmick for jackpots. I figure there might be a market. What the customer actually does afterwards, is completely up to them.
Sanitized for Your Protection
August 31st, 2014 at 7:29:31 PM
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Are you actually going to be up for the year after hitting the jackpot?
August 31st, 2014 at 7:34:14 PM
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Quote: AxiomOfChoiceAre you actually going to be up for the year after hitting the jackpot?
If paid in $1,199 yearly installments, probably not.
The point is, regardless of HOW it's paid, it needs to be reported.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
August 31st, 2014 at 7:48:16 PM
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Quote: AxiomOfChoiceAre you actually going to be up for the year after hitting the jackpot?
Heh.
Here's the thing. Nothing prevents you from playing a lot and hitting more jackpots of the same kind, but never generating a single W2.
Sanitized for Your Protection
August 31st, 2014 at 7:58:29 PM
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Quote: rxwinepaid out $1199 every year over 20 years would that
I am reasonably confident that:
1) I could get better use out of the $23980 as a lump sum, less taxes
2) I could document offsetting losses, negating the tax liability
3) I'd be annoyed getting $99.91 a month for 20 years.
Anything less than about $700k, I want it as a lump sum. At the $35k/yr mark, it's reasonable to go with annual payments. At about 4 times that, it's reasonable to go with monthly payments, should they feel a pressing need to.
May the cards fall in your favor.
August 31st, 2014 at 8:53:24 PM
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Obviously this won't work, so no need to wonder or say why.
I am a robot.
August 31st, 2014 at 9:07:07 PM
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Quote: onenickelmiracleObviously this won't work, so no need to wonder or say why.
That's what they said about the Pet Rock.
Sanitized for Your Protection
August 31st, 2014 at 9:50:10 PM
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Quote: DJTeddyBearIf paid in $1,199 yearly installments, probably not.
The point is, regardless of HOW it's paid, it needs to be reported.
Well yes, but the point is, if you're down for the year anyway, all this cloak and dagger nonsense is a waste of time.
September 1st, 2014 at 3:41:02 AM
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I hit the "play" again! I can't stop. How are you after the jackpot?
September 1st, 2014 at 5:20:01 AM
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As a non-American, I think that taxes on slot machine winnings is totally stupid and doesn't make sense. In the long run, everyone is always a loser at the casino. It's funny that a person would rather win $1199, rather than $1300 (assuming that after tax this will be less than $1199).
September 1st, 2014 at 5:22:52 AM
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It's the hidden cost of American corruption we must pay so wealth can last millennia.Quote: yy888888As a non-American, I think that taxes on slot machine winnings is totally stupid and doesn't make sense. In the long run, everyone is always a loser at the casino. It's funny that a person would rather win $1199, rather than $1300 (assuming that after tax this will be less than $1199).
I am a robot.
September 1st, 2014 at 8:05:11 AM
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deleted
DUHHIIIIIIIII HEARD THAT!
September 1st, 2014 at 2:16:04 PM
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Quote: AxiomOfChoiceWell yes, but the point is, if you're down for the year anyway, all this cloak and dagger nonsense is a waste of time.
Maybe, maybe not. There's a lot of casual players going to vegas every day of the year, just for a few days and never pay mind to thinking about taxes unless they hit a jackpot.
Let's say they play a VP machine -- let's say 50c denom poker. Instead of getting $2000 jackpot, W2, and notice to the IRS. They get $1199, and a payment of the rest in the next calendar year which is deposited electronically, if they wish. (or they could get sent a check)
Is that appealing to some, I don't know. As I said, what the customer does or doesn't do as far as following the law is left up to them. At any rate, they would eventually have $2000 with no one deducting anything -- and IRS not knowing about either -- or at least not through an automatically generated W2.
Sanitized for Your Protection
September 2nd, 2014 at 12:04:28 AM
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Quote: rxwineAt any rate, they would eventually have $2000 with no one deducting anything -- and IRS not knowing about either -- or at least not through an automatically generated W2.
Sounds like structuring to me. It's already a problem if you're structuring to avoid a CTR; I'm sure it's not less of a problem to structure with the intent to avoid taxation.
There's probably even a pesky IRS rule (IRC Section 451(h)) that says you have to receive it over at least 10 years in order to not pay taxes on it all up front.
I still think that $35k/year is the tipping point, for me, anyway.
May the cards fall in your favor.
September 2nd, 2014 at 9:30:39 AM
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Quote: rxwineAt any rate, they would eventually have $2000 with no one deducting anything -- and IRS not knowing about either -- or at least not through an automatically generated W2.
I believe the company offering the jackpot would probably purchase an annuity and you would receive a 1099 each year.
At my age, a "Life In Prison" sentence is not much of a deterrent.
