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How do I determine the interest rate received on annual payments?Reply
Which ever way you take the payment (lump sum or annuity), you would pay income taxes on it, plus any further income generated by investments* made from it. Future tax rates are unknown and unknowable. If you take the 5.3 mil, you're going to pay income tax on that. If you invest what's left, you will pay taxes on any profits taken, at the tax rates in the year in which you took profits. If you take the annuity, you're going to pay income tax on it - every year you get a check - at whateve
Mar 8, 2008, 5:05 pm - time*treat - Lottery Discussion Forum

Payment of Lottery PrizesReply
If you and the IRS have a difference of opinion on how it works, who do you suppose is going to win the argument? Let's look at what the IRS says again: payment of winnings is considered made when it is paid, either actually or constructively You see the part that says actually or constructively ? There's a reason they don't just say when it is paid . As soon as the state runs the winning numbers through the computer they can identify the winner, even though they don't have a name. I
Dec 21, 2007, 3:08 am - KY Floyd - Lottery Discussion Forum

Powerball & Megamillions GrowingReply
with MM roll today it hit 85million cash vs current powerball cash of 84.6 million THERE NICK AND NICK FOLKS! i have a feeling mm in a few more rolls will be way ahead anyway with its more players and more ticket sales ratio to pb sells for same level jackpots. you have to admit pb Annuity makes mm Annuity a joke in marketing value LOL powerballs makes 84.6m into $181,000,000 vs mega millions 85m into $148,000,000 way to go pb marketing.
Aug 15, 2007, 10:53 am - joshuacloak - Jackpot Games Forum

Should PB MM be tax-free/lump sumReply
AuntiPat is correct about reducing the tax burden. I've studied this and it doesn't matter how you claim your prize...Trust...LLC or otherwise I can't see a way to significently reduce the Federal Tax burden unless you form a charitable trust and then you loose control of most of the money. I too have heard the stories about lotteries promoting charitable donations as a way to reduce the tax burden. But I never understood why they would do that. Being the cynic that I am I always believ
Aug 10, 2007, 8:43 am - Uncle Jim - Jackpot Games Forum

winnings lump sum payout Percentage?Reply
The other posts refer to MM and PB, but you didn't specify so I'll mention Florida's games. Lotto is based on the total amount collected, since FL is a parimutuel state, but the average lump sum payout is 55%. I follow the press releases very carefully. The annuity is for 30 years. I've seen the cash payout as high as 60% of the estimated jackpot advertised. MegaMoney is different. The largest jackpot is $2 million, and because it's only a 20 year annuity, the lump sum payout averages 65%, al
Mar 30, 2007, 5:50 pm - justxploring - Lottery Discussion Forum

winnings lump sum payout Percentage?Reply
The cash value is based on ticket sales, and the annuity is based on how much can be earned by investing the proceeds of ticket sales. How much can be earned depends on interest rates and how long the money is invested. NY lotto and Powerball both start with small payments that get a bit bigger over 25 and 29 years. Mega Millions has equal payments every year for 26 years. I don't know about other states. As of now the cash value for PB is typically about 47% of the advertised annuity value
Mar 28, 2007, 2:13 am - KY Floyd - Lottery Discussion Forum

Man with terminal illness wins 20-year annuity lottery jackpotNews Story
In December, Wayne Schenk was diagnosed with terminal lung cancer. A month later, he was a millionaire. The 50-year-old tavern owner from Naples, New York, won a million dollars in a New York state lottery scratch-off game. But the Marine Corps veteran doesn't expect to be around to collect all his winnings. To do that, he would have to live 20 years. His doctors have given him a year to live, at most. Under lottery rules for the High Stakes Blackjack game he won on January 12, the jack
Feb 1, 2007, 6:50 pm - Todd - Lottery News

Probability of a Rollover in Powerball.Reply
According to the Powerball E-mail the actual jackpot on Saturday, Jan 20 was$212,300,000 Annuity/$100,700,000 cash. A jackpot of $390,000,000 annuity would have a $185,000,000 cash value at Saturday's ratio. 185.0-100.7=84.3 30.28855% of Powerball Sales go to the jackpot. 84.3/.3028855 ~ 280 $280,000,000 in sales for three draws seems likely (assuming no winner). The limited sales history at the current jackpot levels indicates sales should be at least 50, 90, and 140 million
Jan 22, 2007, 6:53 pm - Homeydogg - Jackpot Games Forum

To my fellow LP membersReply
Bartista Express writes: But jim695, do you know what's so disheartening to me? It's the fact the owner (chief bottle washer) of this community has decided to tell CashOnly not to mention anything about what he has been saying all this time ever again, if he wishes to be taken seriously ever again! Please correct me if I'm wrong. I thought our chief bottle washer was supposed to be unbiased? And if so, from what I just read, that seems not to be the case at the present moment! Maybe ou
Dec 19, 2006, 9:23 am - fja - Lottery Discussion Forum

To SirMetroReply
IMO there are parallels between cash v annuity and the abortion issue. For obvious reasons, I won't go any further. CashOnly Cash, this was a really cheap shot for obvious reasons. People often make comments and then write words like don't bother even responding or I won't even get into this. When this happens, it's a way of saying you need to make a point and have the last word. Then just say it. For the year or so I've been on this site, I've seen your rants every time this d
Sep 20, 2006, 7:28 pm - justxploring - Lottery Discussion Forum