Lottery Winnings

This site if very helpful, and gives you a lot of information that you may be looking for on winning the lottery.

An inspiring story

There was a young girl in Hamer, Tennessee who, at age seven, was orphaned and had to go to the home of her older sister and be raised by the sister and her no-nonsense farmer husband. She didn't have much growing up. She worked in a grocery store, married, had a child, and then worked in a convenience store owned by Terry Derryberry.

The Tennessee lottery had launched a new scratch-off game, in which the grand prize was $1000 a week for life, with a minimum guarantee of a million dollars. The young woman had asked the owner for the last remaining 8 tickets on the old roll, and bought two with part of her small weekly paycheck. She was driving home and decided to scratch the tickets, and, to her amazement, she WON!!

She ended up buying the convenience store where she worked, and is now the proud owner. This is proof that lottery dreams can come true.

Tax considerations

When you\'re learning about something new, it\'s easy to feel overwhelmed by the sheer amount of relevant information available. This informative article should help you focus on the central points.

 

If you base what you do on inaccurate information, you might be unpleasantly surprised by the consequences. Make sure you get the whole Lottery story from informed sources.

For some taxpayers, the dream of a sudden windfall can turn into a awful tax headache. Winning a major lottery prize requires an immediate examination of the winner\'s situation, often including a choice of whether to take the award in a lump sum or as an annuity, determining if there was a preexisting agreement to share costs and winnings, deciding on whether to make gifts—charitable or otherwise—and calculating the impact on the winner\'s potential gross estate.

Every day, in 37 states and the District of Columbia, lottery contestants take a chance on becoming instant millionaires. If they win, their lives will forever be changed by new social, family, and financial pressures. Among the issues they must immediately confront are the tax implications.

INCOME TAX ISSUES

From an income tax perspective, the issues include the timing of income recognition, application of the constructive receipt and economic benefit doctrines, withholding, the ability to offset losses, and the potential to assign or sell the lottery proceeds.

Inclusion in Income
There no longer is any question (if ever there was) but that winnings from lotteries and raffles are gambling winnings included in gross income under Section 61.1 In addition, Section 74(a) states that "gross income includes amounts received as prizes and awards."2 Section 102(a) provides an exclusion from income for gifts, but a lottery prize is received in exchange for the purchase of a lottery ticket and not from the "detached and disinterested generosity" of the lottery.3

In some instances, when a lottery prize is payable in installments, the lottery may purchase a bond or an annuity, and a portion of each annual installment may be designated as interest on the unpaid balance. Section 103(a) provides that "gross income does not include interest on any State or local bond." Given the fact that a portion of each annual installment of a lottery prize is designated as interest, there is at least a color able argument that the interest being paid falls within the scope of Section 103(a). Nevertheless, Rev. Rul. 78-140, 1978-1 CB 27, states that amounts designated as interest to be paid on the unpaid annual installments of the grand prize of a state lottery, with the interest and the installments totaling the stated amount of the prize, will not be excludable from gross income of the winner under Section 103(a).
 

Sometimes it\'s tough to sort out all the details related to this subject, but I\'m positive you\'ll have no trouble making sense of the information presented above.

Win That Lotto!

There is no magic way to ALWAYS win the lotto. Anyone who promises you this is lying. However, there are strategies and systems you can use to dramatically increase your odds of winning.

The majority of people don't know these strategies, and just play the lotto blind, and their odds are slim to none. While a few "underground" lotto pro's DO know these strategies, and they use them to make a killing.

Here are just some of the things you will learn in a few minutes after you download "Win That Lotto!".

The REAL "secrets" behind how to win the lottery. No hype, no non-sense.

Top lottery systems that will put the odds in your favor. Your chances of winning will skyrocket over the average guy.

How to avoid the common mistakes average lotto players make. If you make these same mistakes, they are killing your chances of winning.

How to come up with the best number combinations. This will give you the best chance of winning the BIG jackpot or one of smaller prizes.

Which number combinations NOT to play. Certain number combinations are ALWAYS picked by 100's and 1000's of other lotto players. That means if you select the same numbers, you will have to share your prize with 100's of other people. So this is extremely important if you don't want to share your prize with 100's of others.

The do's and dont's of playing the lotto. You must know these things if you want to win.

The lotto pros' most used and popular methods of playing the lottery. Find out exactly what the lotto pro's do to win.

Advantages and disadvantages of each "system". Everything broken down for you so you can pick and choose your own methods.

How to build your own winning lotto system.

The truth behind free lotto. Is it really too good to be true?

The different lotto rules around the world. Which countries have the smallest lotto taxes, which countries have the biggest jackpots, etc..

And much more....CLICK HERE NOW!!!