swusc.-- Happy, properous & less taxing new year.
-- Guess what. Am happy, even after losing $210 million, on the year-end power ball investment. --(The good news: Was playing with some of the gains ($1,227) of several years ago when, if a 27 had been 29 or vice-versa, the gain would have been $4 million. Nobody won it that week.) One can accept such losses in stride, and can still occasionally invest in power ball later when the prize gets big enough.-- (Hope, even one week of it, is a wonderful by-product of such investing, though cautious due diligence is advised. A dollar is is 'terrible thing to waste'.)-- (So how come it's so weak?)
----Hunch is that divine providence figures it's best to heap large burdens of wealth on only a very few mortals who can cope with it.-- Still one is thankful for gifts from above, like +22% in one, and +20% in another portfolio in '03.
----Y'all have a good one now, you hear? Cheers. :`)
You win 100 M and you can take all the tickets off on sch A.
AMT isnt understood by most. It isnt really a tax. It creates a tax payable back to you.
This is why it isnt a tax.
Say you owe taxes of 10000 but AMT makes it 11000. You have a 1000 AMT credit. when AMT is less than tax then you can take the credit. In the end you will more than likely end up being square unless you get hit by AMT every year. If it is just a one time item like stock option or something then you will get the money back.
You will lose the standard deduction so that should be figured in.
AMT doesnt disallow----it delays. Maybe forever :).
<<Payout-tickets purchased=taxable gains>>
Are you sure? It seems Form W-2G shows gross winnings. Offsetting losses go in Schedule A as a miscellaneous deduction. Misc deductions are subject to various limits, of course, and you've also got AMT lurking in the background. I can envision a scenario where your $150m adjusted gross income is taxed at 28% while AMT disallows your $135m of "losses". But I've never filed a W-2G so I'm just guessing.
This is all just for individuals, of course. A business shouldn't have any problem deducting the whole amount.
in the US they would only pay taxes on the gain as well.
Payout-tickets purchased=taxable gains.
It is like investing in stocks===you only pay taxes on the gains.
Do you figure taxes when buying? No You figure them when selling.
Your math is off by at least a factor of two.
I haven't done the Powerball math (nor do I plan to), but lotteries in the past have exceeded 100% payouts. There was an Australian group that played them. They usually negotiated block purchases directly with lottery officials, but in one case they actually sent people into bars and such to buy sheets of tickets. They ran out of time and only covered 80% of the numbers. Eeek! But they won anyway, so this "failure" served to massively boost their ROI.
you can't take taxes!
This is why.
you are buying the ticket with after tax dollars, but the winnings are not taxed until you win more than a dollar.
A coin toss is 50% and it pays double. You dont figure the taxes on expected value.
Yes taxes are a big deal and you can figure you will get 1/3 of jackpot after tax and taking cash.
I didn't see that the thread had morphed into Lottery, so that's cool. As far as the odds and payout and such. What they said on the news is that the odds were 135:1 and the payout as of last night was $155 million on a $1 ticket. As a player, you don't need to worry about whether they're taking in $270 million or whatever. Just the odds and the payout.
that amount of money going to prizes doesnt matter after the jackpot gets to 192M since all the past losers money is protecting the expected value of the tickets sold.
On the split---they dont release ticket sales numbers before drawing do they?
>>>I got the feeling that horse racing was much easier for me than poker. I can barely hold my own in poker. Anybody else had a similar experience?<<<
Gimme a good cigar and good scotch, and I can beat almost anybody at poker.
I wouldn't know a good racehorse if he came up and bit me on the nose.