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$1.5 Billion lottery ticket cashed in
CaptHenway
Posts: 34,226 ✭✭✭✭✭
There was a thread about this being unclaimed. You can relax now.
Professional Numismatist, Retired. 55 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Winner of the PNG's 2026 Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
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61 million in income taxes.
Wow
https://www.autismforums.com/media/albums/acrylic-colors-by-rocco.291/
Yeah...I feel so much better now...
So much for the rumors he washed the ticket.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
No more micro-varieties or errors for the winner! Bring on the gold!
I wonder how much interest he lost by not cashing it in 3 - 4 months ago? Any math majors around?
this good the ticket was claimed, good for the winner and good for the state especially after the storm damage the whole state suffered months ago
The delay may well have been impacted by having to decide between a lump sum and an over time payout.
The winner may have become convinced by recent events that there may be a change in the political climate that would potentially lead to a huge tax rate hike years ahead if the delayed payout was taken.
Tax advisors may have suggested more green would be netted now by taking the lump sum rather than risking the increased taxes that would be required to fund the Green initiative if it becomes a reality.
I don't think that will hurt him or her!
That is just state taxes. The Feds will get theirs too.
Or he/she may have wanted to take advantage of the "Tax Cut For The Rich," now that he/she is one.
I suspect we are saying the same thing.
From a 2/23 article:
"Hans Blake, principal owner of Intelligent Investing, did the math and calculated that if the winner had taken the $878 million offered as a lump-sum payment back in October and deposited it in a savings account with an interest rate of 2 percent, the money would have grown by about $5.8 million over the past four months.
And, Blake said, investing in the stock market at a 7-percent rate of return would have generated an additional $20 million or so over the past four months."
https://greenvilleonline.com/story/news/local/south-carolina/2019/02/23/mega-millions-unclaimed-lottery-ticket/2943473002/
"She comes out of the sun in a silk dress,
running like a water color in the rain...."
I've known a few very wealthy people through my father. While a lucky lottery-winning formally normal person as you or I may NOW have no interest in "chump change" interest income, I assure you that some folks watch their money very closely. Perhaps that's one of the reasons they are able to KEEP IT.
Now, anyone else have a guess how much money he/she lost by waiting 5 months? I'm just curious.
Time to go buy an Island Nation somewhere.
With 5.8 million, he could have bought a coin Mr. Hansen needed to complete his goal by making an offer its present owner could not resist.
I have read that you should not sign the ticket right away if you want it to remain anonymous. You should first set up a trust and then use that name to claim the winnings. If you already have a trust with an anonymous name, that would work as well. You would also want to contact some legal and financial advisers that have experience with these things so you don't make any mistakes that may cost you down the road. This may be the reason it took so long. Maybe this person wanted to get their ducks in a row so they could keep it completely anonymous and prevent future problems. Many lottery winners go bankrupt after winning because they make stupid decisions.
Just speculation on my part.
Yeah to the tune of over 600 million.
$61 million in state taxes paid on $878 million in lottery winnings is 6.4765. South Carolina state income taxes are much lower than California and other high tax states. Bet the winner is glad he or she does not live in a high tax state.
Fed income taxes on the $878 million will for the most part be at the highest marginal rate which is, to my knowledge 37% in 2019.
37% of $878 million is $324,860,000.00.
Deducting from the lump sum of $878 million the state income taxes of $61 million and the federal income taxes of $324,860,000.00 (a total tax bill of $385,860,000.00) leaves the winner with a lump sum payment of $492,140,000.00 in take home lottery winnings.
$492,140,000.00 in take home winnings is 32.80933% of the $1,500,000,000.00 winning lottery prize.
If the progressive federal income tax rate advocated by some members of Congress topped out at 90% and that 90% rate applied to every dollar in income that exceeds $1,000,000.00, then the approximate income taxes taken by South Carolina and Uncle Sam from the $878,000,000.00 lump sum payment would be about 96-97%, leaving the lottery winner about $34,000,000.00 in take home money.
In any event, it would be way cool if the winner of this lottery was a coin collector who decided to mimic Hansen and other similar collectors in the deep end of the hobby pool.
Congratulations to the winner !!!
He or she probably doesn't care. Money is no longer a concern.
Wow!
Income taxes in SC are fairly low, but the property taxes are pretty high in many districts.
Actually, California has no income tax on lottery winnings.
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 700
That's just the state's share, the Feds get much, much, much more.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
My kid was postulating that the ticket was the most valuable item in terms of dollars per unit weight in the world.
That was my first thought. Unbelievable.
The limp sum is always the way to go based on the many articles I've seen written by advisors on the subject.
Thank You!
Interesting.
Taking the lump sum and investing it into tax free and insured municipal bonds could result in having one’s cake and eating it too. The tax free periodic payout from the bond interest could provide a future income stream that would likely otherwise have been taxable by taking the over time payout offered by the lottery.
I preferred to remain anonymous.
BHNC #203
So... who took the $622 million?
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
That is a lot of discipline. Holding on to a $1.5B winner for so long. Or maybe he/she had to find it in their hoard like a few coin collectors around here.
Practice makes perfect & nobody is perfect. So, practice being nobody and be perfect !
South Carolina had already anticipated the large windfall and allocated the money out in raises and such. Its a good thing the person came forward. Otherwise SC would have some serious debt..
The winner will be well set for life.... I would say he/she spent the past months preparing financially for such a large sum of money. One does not simply go to the local bank and cash the check....
Cheers, RickO
.
maybe the person wanted to wait until 2019 tax year, and start collecting losing tickets to make their net winnings lower
FYI. The winning retailer received 50 grand. I know at one point people were wondering what the retailer received
I was under the impression that the lump sum payout was after taxes had been deducted for state and federal.
Anybody know his name?
I think he may be my long lost uncle who i always liked.
If not, then he may be my long lost friend who i always liked.
That depends on your state lottery rules. In California, 25% of the payout will be withheld as Federal taxes. But you're more likely to owe about 37% in Fed tax at the end of the day so you have to pay in that extra 12% on your own as part of your tax return. So you better not spend it all right away!
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 700
You'd have to be a real muppet to immediately cash in a ticket worth the GDP of a small country. I'd get a large team of lawyers, financial advisors and tax experts before I cashed in to make sure nothing goes wrong. Heck, you can afford the best staff money can buy, so its not an issue.
Depends upon your age for one. A COF like me wouldn't likely live long enough to collect it all and even if i did what fun could someone 100 years old really have?
The $878 mil invested in an annuity would return the $622 million over the 29/30 years, thus resulting in the $1,500 million jackpot.
Why not just pay the 12% right away instead of waiting? Also 90% of your tax obligation is due by 12/31 or you are subject to a penalty on the shortage. If you file by 01/31 of the following year you can pay without penalty.
It's all direct deposit.
I heard on the news that it is a woman that doe not want to be known. more power to here and I wish her/him well
That was already in effect as of 01/01/2018, no?
I missed out on 450,000$ Monday at my gas station......Hopefully someone I know. For some reason I didn’t play.....just checked some old tickets.
I was getting really worried for the person.
Despite the loss of interest income for 5 months, I reckon they saved themselves a lot of money by taking the time to cash the ticket 'the right way' (trusts, lawyers, etc.) and by putting off taxes on the sum until the following year (2019) so they can collect interest income on the larger sum until the taxes are due.
Former CoFounder of Choice Numismatics
All of my collection is in a safe deposit box!