Quote:
Originally Posted by Por_sha911
And as a double whammy, if you make 50K/yr and win one million, you pay the one million income tax rate on your 50k also.
Win a house? Get a mortgage to cover the income tax until you can sell it and you'll come out better than taking the 1/3 cash option (you would still have to pay income tax on the cash option).
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YOu do not come out better. Read my post. When and if you sell for 1 mil, you still have to pay the capital gain on that. There's is no deduction on it, so you get pop at max gain. The tax will be another 45k or more along with your regular income. Now you are out 90k so far. The more I think about it, I take the 1/3 and run off to Mexico to buy beach front property(ies) and hang out with the drug lords.