W-2G for Free Play?
Choice (1): I'm sure you'll get a W-2G for $15,000.
Choice (2): W-2G for $25,000 or no W-2G?
Does anyone know what happens?
25k in free play no matter what. You would be giving up possibly over 9k in value depending on games available.Quote: debitncreditIf someone wins a drawing at a Nevada casino and he gets a choice between (1) $15,000 cash or (2) 25,000 free play, how does W-2Gs work?
Choice (1): I'm sure you'll get a W-2G for $15,000.
Choice (2): W-2G for $25,000 or no W-2G?
Does anyone know what happens?
Worst case scenario, you end up with 22k
Quote: AxelWolf25k in free play no matter what. You would be giving up possibly over 9k in value depending on games available.
Worst case scenario, you end up with 22k
Original Question was: Do you know how the W-2G works free play?
Let's say worst case scenario, the guy cashes out at 22K from free play but gets a W-2G for $25,000 for free play. If the person has marginal tax rate of 40% (35% federal and 5% state), and would decide to not pay tax if there's no W-2G, It's not that much difference: (1) $9000 after tax cash vs (2) $12,000 after tax cash (22K - 25K x 40%). If the guy cashes out at less than 22K because of no royal, SF, or quads, then it'll be a lot closer.
2nd- if you win free play, there are no tax form generated at all. The tax implications would be on you to report as gambling winnings.
Almost always take free play. At worst you could make a deal with someone. I would have no problem giving you more than 15k for 25k in FP. Obviously there are a few issues that may come up.Quote: debitncreditOriginal Question was: Do you know how the W-2G works free play?
Let's say worst case scenario, the guy cashes out at 22K from free play but gets a W-2G for $25,000 for free play. If the person has marginal tax rate of 40% (35% federal and 5% state), and would decide to not pay tax if there's no W-2G, It's not that much difference: (1) $9000 after tax cash vs (2) $12,000 after tax cash (22K - 25K x 40%). If the guy cashes out at less than 22K because of no royal, SF, or quads, then it'll be a lot closer.
Quote: debitncreditOriginal Question was: Do you know how the W-2G works free play?
Let's say worst case scenario, the guy cashes out at 22K from free play but gets a W-2G for $25,000 for free play. If the person has marginal tax rate of 40% (35% federal and 5% state), and would decide to not pay tax if there's no W-2G, It's not that much difference: (1) $9000 after tax cash vs (2) $12,000 after tax cash (22K - 25K x 40%). If the guy cashes out at less than 22K because of no royal, SF, or quads, then it'll be a lot closer.
Send me a private message and we can make the world a better place for everyone involved. Want to make it look like you lost all the freeplay? I got you covered. Want to eliminate all the risk from playing the freeplay? Got that covered too. Want to give me a chunk of that juicy ev to perform these simple tasks? I'll take it.
Quote: strictlyAPis there any casino out there that really would even do this in such a disporportionate amount ???????????/
Downtown Grand had a drawing yesterday. The winner had a choice of A Tesla car, 40k cash, or 25k and 25 free play. I don't know what the winner chose.
My friend just bought one for $100k. He was offered $120k for it a couple of weeks before he got it, because people don't want to wait on the waiting list)
Quote: AxiomOfChoiceTesla is the clear winner. You can sell them for above sticker around here.
My friend just bought one for $100k. He was offered $120k for it a couple of weeks before he got it, because people don't want to wait on the waiting list)
Its not always the clear winner. The person would have to have 10k laying around to pay for the sales tax.
Quote: GWAEIts not always the clear winner. The person would have to have 10k laying around to pay for the sales tax.
I don't know what the rules are in your state, but around here that is part of your annual income taxes (they call it "use tax", but the rate is the same as sales tax). You would have the money from selling the car by the time you owed it.
Quote: AxiomOfChoiceI don't know what the rules are in your state, but around here that is part of your annual income taxes (they call it "use tax", but the rate is the same as sales tax). You would have the money from selling the car by the time you owed it.
Its IRS and state sales tax combined.
http://abcnews.go.com/GMA/video/price-winner-pay-tax-collect-prize-20009442
Happens a lot on game shows.
In Nevada Usually they give you a credit to the dealer. The dealer will often give you options including cash. I have seen close to sticker given. No need to come up with the 10k in taxes.Quote: GWAEIts not always the clear winner. The person would have to have 10k laying around to pay for the sales tax.
This is how the curmudgeonly old fools get jaded and start avoiding actual good deals, things like free stuff, players cards or whatever. A few small inconveniences.Quote: darkozIts IRS and state sales tax combined.
http://abcnews.go.com/GMA/video/price-winner-pay-tax-collect-prize-20009442
Happens a lot on game shows.
That just seems like retarded logic at the end of that news cast. Sounds like that B*&( just wanted attention. She was bitching yet she made out great. Some people.
"if your broke don't win anything, you can't pay the taxes"
That's why they are broke, to dumb to figure something out.
Quote: AxelWolfThat's why they are broke, to dumb to figure something out.
Post of the year
Quote: AxelWolfThis is how the curmudgeonly old fools get jaded and start avoiding actual good deals, things like free stuff, players cards or whatever. A few small inconveniences.
That just seems like retarded logic at the end of that news cast. Sounds like that B*&( just wanted attention. She was bitching yet she made out great. Some people.
"if your broke don't win anything, you can't pay the taxes"
That's why they are broke, to dumb to figure something out.
In the show extreme makeover, many people had their houses sold at sheriff sales because once they had their houses completely remodeled the school taxes went up. Problem is, most of theses people had their houses done because of special circumstances like losing a job but having a disabled kid so they had no money.
I don't know why the school taxes have anything to do the sheriff and all of that.Quote: GWAEIn the show extreme makeover, many people had their houses sold at sheriff sales because once they had their houses completely remodeled the school taxes went up. Problem is, most of theses people had their houses done because of special circumstances like losing a job but having a disabled kid so they had no money.
I don't really know what show you are talking about. I can imagine If someone builds you a million dollar addition to your house and now they want taxes on the 1 million dollars. No S%^t you will have to sell your house if you don't have the money. You shouldn't have a million dollar house if you don't have any money. I would sue the people making the TV show. No doubt they are making money off the show and using disabled people as a selling point. I can't imagine... if this kind of thing was happening, like you're saying, it is still going on.
Quote: GWAEIn the show extreme makeover, many people had their houses sold at sheriff sales because once they had their houses completely remodeled the school taxes went up. Problem is, most of theses people had their houses done because of special circumstances like losing a job but having a disabled kid so they had no money.
Isnt that our entire system of "entitlements" in a nutshell? You can give someone money, housing, etc, but most will end up right where they started. Not politics, just facts.
Quote: AxelWolfI don't know why the school taxes have anything to do the sheriff and all of that.
I don't really know what show you are talking about. I can imagine If someone builds you a million dollar addition to your house and now they want taxes on the 1 million dollars. No S%^t you will have to sell your house if you don't have the money. You shouldn't have a million dollar house if you don't have any money. I would sue the people making the TV show. No doubt they are making money off the show and using disabled people as a selling point. I can't imagine... if this kind of thing was happening, like you're saying, it is still going on.
It was on ABC for 10 years. People would have 50k houses and they would basically tear them down and rebuild a house that was worth 500k. The county or locality would come by and re asses their house and then want taxes on 500k. Once you don't pay county/local/school tax they would auction your house off to pay the debt.
Sorry OP to derail the thread. Whenever it comes to taxes I think the worse possible thing to do is ask an internet forum. Your best avenue for truth is to ask the casino what they will do and then consult a tax professional for advice. It may cost you a little but when it comes to 10s of thousands you are better safe than sorry.
With the casino's own wording, you should be able to show you won "no cash".
Unless you win a jackpot amount over $1199, the amounts you would be winning individually are just something you report yourself at end of year.
