Can a non-profit Org. cash a JP ticket and NOT pay taxes?

Reply #38

mcginnin56 — Tue, 29 May 2012 10:23:23 GMT

That's the trouble with some of us Americans nowday's, we couldn't bear to be inconvenienced.

Whatever happened to the John Wayne style of rollin' up your sleeves, gettin' the job done and no whining about it

Reply #37

mediabrat — Tue, 29 May 2012 07:08:38 GMT

Careful... the loonies here are going to call you a Communist for being willing to pay your fair share of taxes...

Reply #36

KY Floyd — Tue, 29 May 2012 05:02:07 GMT

For the sake of argument, let's forget that becoming a Caymanian requires that you first get a permanent resident certificate (easy enough if you've got a few million bucks) and spending a minimum of 3 years as an actual resident. Let's also pretend that putting your money in a CI account will result in a 100% guarantee that the US will never be able to find any information about it. There's still the matter that you won the lottery while you were a US citizen and a resident.

The taxes you ow... [ More ]

Reply #35

mcginnin56 — Mon, 28 May 2012 19:55:37 GMT

What about leaving all my assets with my Aunt Dorothy? If I can't trust her, whom can I trust

Reply #34

Coin Toss — Mon, 28 May 2012 19:49:47 GMT

Not anymore, those banking laws changed due to U.S. pressure.

Reply #33

Ronnie316 — Mon, 28 May 2012 16:57:55 GMT

The way I see it they are going to spend a couple of TRILLION this year whether they have it or not so what do they need my measly $40 million for??? Besides $40 million will pay for a lot of accountants and lawyers even if I was just avoiding taxes but that wont be the case as it is easy to do what is required to be a legit charity and still go to the resort, besides you don't need 66.8 million in the bank to go hang out at a resort. lol. I can do that right now without having any extra money l... [ More ]

Reply #32

OldSchoolPa — Mon, 28 May 2012 16:31:03 GMT

I hate paying more than my fair share of taxes just like anybody, but if and when I win a lottery jackpot, the last thing I am going to be thinking about is how to avoid paying taxes. That usually does not end up very well for those who try to do that (er, uhm, can anybody say Richard Hatch, Wesley Snipes, Charlie Rangel...oops, not paying your taxes only will land you in jail if you are not a Congressman!). I will happily pay my 30 percent or even 40 percent total taxes. The way I see it, that

Reply #31

Ronnie316 — Mon, 28 May 2012 16:15:18 GMT

OHHH YeaHHH bAAAaaby,

As a non-operating private foundation...... I wont be taking contributions, but thank you just the same.

a private foundation usually derives its principal fund from an individual, family, corporation, or some other single source and is more often than not a grantmaker and does not solicit funds from the public

Examples of a non-operating private foundation would be the Rockefeller Foundation and the Bill Melinda Gates Foundation.

Cited from Wiki (emphasis added... [ More ]

Reply #30

mcginnin56 — Mon, 28 May 2012 15:59:04 GMT

I look forward to your first sermon, Reverend! How may I make a donation to your fine church

Reply #29

Ronnie316 — Mon, 28 May 2012 15:55:10 GMT

Qualifying is a fairly simple matter of filing all the correct paper work. I may even choose to call myself

The Reverend Ronnie Jackson

Reply #28

mcginnin56 — Mon, 28 May 2012 15:49:37 GMT

Fair enough. Just though it would be a better deal than your getting only $200K per year. I know a lot of us here at LP are distressed, perhaps

by relieving these members, you will have qualified to not pay the 25% tax

Reply #27

rdgrnr — Mon, 28 May 2012 15:49:04 GMT

I'll be voting for #5 this November.

Reply #26

Ronnie316 — Mon, 28 May 2012 15:41:49 GMT

Nice thinking mc but I can do that here without paying the 25% which is the topic of the thread. lol. All I need to do is one of the following.

Relief of the poor, the distressed, or the underprivileged, Advancement of religion, Advancement of education or science, Erection or maintenance of public buildings, monuments, or works, Lessening the burdens of government, Lessening of neighborhood tensions, Elimination of prejudice and discrimination, Defense of human and civil rights secured by l... [ More ]

Reply #25

mcginnin56 — Mon, 28 May 2012 15:40:53 GMT

Hmmm, Switzerland sounds like a nice country too! They also make nifty watches and chocolate. Whatta think Ronnie? A little cooler climate,

but better protection for your money.

Reply #24

Coin Toss — Mon, 28 May 2012 15:35:11 GMT

mcginnin56,

I think a lot of those 'tax havens' aren't what they used to be. Consider the Swiss banks.

Ronnie316,

In re: to the topic title,

Can a non-profit Org. cash a JP ticket and NOT pay taxes?

wouldn't anyone or any entity cashing a lottery ticket be attempting to make a profit

Reply #23

mcginnin56 — Mon, 28 May 2012 15:19:03 GMT

Here's one more brain-fart for you Ronnie. Take your winning Mega-Jackpot as a lump sum. (you still need to pay the minimum 25% federal

and any applicable state tax). Now move yourself and all your assets into the Cayman Islands, and form an off shore account. Here your money

is protected from all other international countries.

Now at your leisure, you are free to dole out whatever monies, to whatever charities of your choice, with no further tax obligation. Normally you

would s... [ More ]

Reply #22

KY Floyd — Mon, 28 May 2012 05:12:42 GMT

Now I've got no idea what you're talking about. What does function as a charity mean? If you plan to simply make charitable donations from your income and principal how are you going to pay yourself

Reply #21

Coin Toss — Sun, 27 May 2012 22:16:33 GMT

Ronnie316,

A lot of people followed this fellow's advice- and wound up just like he did:

From Wikipedia, one source of many:

Irwin A. Schiff(born in February 24, 1928) is a prominent figure in the United States tax protester movement. Schiff is known for writing and promoting literature that claims the United States income tax is applied incorrectly. He has lost several civil cases against the federal government and has a record of multiple convictions for various federal tax crimes. Sc... [ More ]

Reply #20

Ronnie316 — Sun, 27 May 2012 19:33:13 GMT

That's true,

but one of the benefits of being a low income person is that you have nothing to hide. lol.

Reply #19

mcginnin56 — Sun, 27 May 2012 19:22:07 GMT

Tax code book only 15,000 pages? I thought with all the bureaucracy, there would have been far more pages than that

Reply #18

haymaker — Sun, 27 May 2012 19:20:44 GMT

Ronnie316,

your thread has got me to thinking,

anyone who is lucky enough to win a substancial JP,

should have their taxes from recent years in order cause you'll likely be audited,

since gov't so desperate for money.

Reply #17

Ronnie316 — Sun, 27 May 2012 19:06:18 GMT

I think you misunderstood my last post KY,

I changed my approach and said I would become a charity give 92.5% of my winnings to some OTHER CHARITY to whom I am not associated and will not benefit from in any way.

I will keep the remaining 7.5% and function as a charity (who has joyfully given $92.5 million) and pay myself $200,000, a year for the next 40 years.

Will that work

Reply #16

psykomo — Sun, 27 May 2012 17:55:29 GMT

R316:

Everyone should see a professional TAX PERSON if U have a tax matter U don't UNDERSTAND??????

The TAX CODE books R over 15,000 thousand page's, MABY MORE by NOW!!!!!!!!!!!!!!!!!!!!!!!!!

They (congress politicians) ADD more more each year. This will NEVER EVER CHANGE

MORE tax codes MORE $$$$$$$$$$$ of UR MONEY will solve GOVERMENT'$ PROBLEM'$$

Remember URD giver and they RD RECEIVER$$$$$$$$$

LOL ON UR JACKPOT WIN

Reply #15

KY Floyd — Sun, 27 May 2012 06:39:50 GMT

How do you plan on dribbling $200k per year from a charity that you won't benefit from in any way? That whole not benefitting thing is a pretty big part of the IRS' test, BTW.

Let's say you donate the $75 million that isn't withheld if you win $100 million cash. Then let's say it generates income at 6.667%, resulting in annual income of $5 million. If you draw $200,000 as an annual salary you'll be taking 4% of the income . That would be comparable to the CEO of the Red Cross drawing a salary... [ More ]

Reply #14

Ronnie316 — Sat, 26 May 2012 15:41:20 GMT

CRAP, you half way there. Your further along than me.

Reply #13

mcginnin56 — Sat, 26 May 2012 15:36:47 GMT

I've got a boat out back (canoe), all I need now is a house in Florida

Reply #12

Ronnie316 — Sat, 26 May 2012 15:26:45 GMT

Realisticly speaking,

with $10k a month (after taxes?) I could make payments on the house in Florida with a boat out back.

($200k a year would make me a filthy 1%'er and at 40-50% tax I might get around $10k per month

Reply #11

mcginnin56 — Sat, 26 May 2012 15:05:41 GMT

Very noble of you, to give back to more noble causes.

200K should be more than ample to live a gracious lifestyle.

Reply #10

Ronnie316 — Sat, 26 May 2012 14:56:42 GMT

All this effort and thought to avoid taxes, a noble cause to be sure.

Excellent choice of words mc,

fact is mc there are lots of people out there whom I feel have causes that are more noble than mine and would make sure the money goes to good use. As for me, $200k per year would be more than enough. lol.

Reply #9

mcginnin56 — Sat, 26 May 2012 14:45:48 GMT

All this effort and thought to avoid taxes, a noble cause to be sure. Why not just keep the whole enchilada

Reply #8

Ronnie316 — Sat, 26 May 2012 14:23:38 GMT

Ok, lets just say that I want to avoid paying taxes.

Say that I'm willing to keep only the 5-10%. I get $7.5 million and write one check for the remainder to a charitable entity that I will not benefit from in any way.

Can I then dribble $200k per year to myself for the next 40 years without being scrutinized

Reply #7

KY Floyd — Sat, 26 May 2012 06:53:06 GMT

What you're describing doesn't sound like a charity. It sounds like evadinging taxes on gambling income while using that income to pay yourself a salary to decide what legitimate charities to donate the income to.

The question is whether you want to avoid paying taxes through legitimate charitable donations or put more money in your pocket. It's mostly an either/or choice; you can't do both well. You can legally avoid taxes by donating the money to a charity, but it's not a real charity if it... [ More ]

Reply #6

Ronnie316 — Sat, 26 May 2012 02:15:50 GMT

Thats exactly what I'm talkin about right there.

Lets say I hit $100 million and instead of paying $40 million in taxes I want to become a charity and work full time locating, working with and donating to other charities at least the $40 million and all I want to receive is $200,000 a year plus living expenses.

It would be legit and I would be actually working with established missions organizations around the world.

Reply #5

KY Floyd — Sat, 26 May 2012 01:30:53 GMT

It would be perfectly legal to start a charity, donate a winning ticket, and act as a paid employee of the charity, as long as it's a legitimate charity.

You probably wouldn't even face serious scrutiny from the IRS, as long as you give away most of the money and your salary is only a tiny percentage of the charity's annual income. As a very rough guess you could eventually pocket 5 to 10% of what the ticket was worth. Before taxes, of course.

Reply #4

Coin Toss — Fri, 25 May 2012 04:43:44 GMT

There's an old joke, the difference betwen tax avoidance and tax evasion? 15 to 20 years.

But what you're suggesting sounds more like tax evasion.

In fact, it almost sounds like the old Universal Life Church tax scam- people would become 'ministers' in 'the church' (themself), give their whole salary to 'the church', pay themselves what they needed to live on (all of it), and write it all off as a charitable donation.

Reply #3

Stack47 — Fri, 25 May 2012 02:11:12 GMT

A jackpot winning ticket would be considered a charitable contribution and probably illegal for the charity to give the purchaser a kick-back. And not very many players would give away all their winnings just to avoid paying taxes.

We know in Iowa even if the winner forms a trust, they require the identity of the player purchasing the ticket. Many states run background checks on winners to see if they owe back taxes, have outstanding warrants, and back child support. I'm pretty sure unless th... [ More ]

Reply #2

rad242 — Thu, 24 May 2012 19:27:56 GMT

I think you would undergo TONS OF SCRUTINY if this is a recently established organization by yourself. If it is a well known and reputable charity then I don't forsee any issues. I wouldn't elect this option if the primary purpose is to avoid taxes as Uncle Sam will be in your shorts and the media would track this story until they find a scandal to report. If you want your money DRIBBLED out to you in the form of a six figured salary, why not take the annuity or hire a business manager/tax attor... [ More ]

Reply #1

stripesnsolids — Thu, 24 May 2012 19:14:04 GMT

That's an interesting question.......I'd like to know the answer as well.

Can a non-profit Org. cash a JP ticket and NOT pay taxes?

Ronnie316 — Thu, 24 May 2012 16:34:05 GMT

I'm just wondering because I think it might be better to intentionally avoid paying taxes and just give myself a salary of a couple a hundred thousand a year. (plus living expenses of course