Someone Just Turned $2 Into A Billion Dollars
It’s a nice way to make an easy billion, but Lady Luck must be on your side – big time! By now, most people know that’s what happened in the recent Mega-Million lottery drawing. According to the lottery officials, the winning numbers match a single ticket in Illinois. The officials also say the winner has yet to come forward. For the winner’s sake, if they even know they won, I do hope they are putting together a team of professionals to help them negotiate a successful new life as a multi-millionaire.
Many lottery winners don’t think about the tax consequences, but the fact is that Uncle Sam is always the biggest winner when someone wins the big jackpots. In this instance, the federal tax payment could be as little as $288.7 million or as much as $495.8 million depending on how the winner takes payment.
Even smaller winnings are taxed as income. So, the other 26 tickets that won second-tier prizes worth either $1 or $2 million will have to turn over a big chunk of their winnings to the IRS as well. No matter how much the winners are obliged to give to Uncle Sam, it is exciting and potentially life-changing to win those sums of money. Despite the excitement, it’s important to find a team of known professionals to work with who have your best interests in mind and not just a so-called “professional” who’s looking for a quick money-grab.
Find a reputable tax attorney and a fiduciary financial advisor. If these people seem to have appeared out of the woodwork, keep looking until you find someone who has a lengthy and stellar reputation.