The True Cost of Free ThingsOn July 14, 2020 by king.97
So there we were, a bunch of guys in their 40s on a Tuesday night, sitting around a corporate conference room table playing our once-a-month friendly game of Texas Hold ’em.
n the big screen, the Sox were busy beating the Indians, the credenza was overflowing with pizza, Doritos and drinks, Attorney Steve was busy talking about landing a big one for his firm, CPA Rob was talking about his daughter’s birthday and somewhere at the far end of the table I could hear ultra-successful investment banker Brad mumbling about his wife demanding a pit-stop at Publix for a frozen chicken. 사설토토사이트
And there, sitting at the head of table was myself, concentrating on one thing and one thing only: staring down film producer Rod, wondering if he was trying to bluff me out of yet another hand. Believing a third rub of his eye was his tell, I called his “all-in” and heroically managed to beat his two-pair with a straight to the ten.
Although losing the biggest hand of the night wasn’t destined to be his fondest memory, I did manage to give him the bright side of things: technically speaking, the money he just lost could potentially be a tax write-off for him.
Surprising? To many people, it most certainly is. In fact, I find many people aren’t aware of the laws regarding the thing we all look forward to, sometimes referred to as “winning free stuff.”
So, while you may not find yourself hanging out with the Hold ‘Em gang on a Tuesday night, who knows? You may find yourself the proud owner of something for free. And in the event you do land such a thing, when it comes to taxes and other related issues, here’s a few quick things to keep in mind…
1. WINNING THE LOTTERY
Given there’s a better chance for me to win Powerball than for my New York Jets to win another Super Bowl, I suppose I should remind myself of what will happen if I got so lucky to win the biggest lottery in the land.
Generally, all lottery winnings are subject to federal, state and local taxes. An award under $600 dollars is often not reported, however, technically speaking, any amount you win needs to be reported as taxable income. Large winnings are reported on IRS form 5754 and other than swimming to Cuba with cash stuffed up your pants, there’s no way to avoid taxes when winning the big one.
Disappointed? Don’t be. For those that don’t appreciate lengthy swims to foreign lands, you may want to consider not playing the big one at all….. Why?… Well, consider this: Powerball is played twice a week and the odds of winning are roughly 120,000,000 to 1 (which is close to the odds of my Jets winning another Super Bowl). Doing the math, if you lived to be 77, then you would have to buy roughly 15,000 tickets for each drawing (approximately 30,000 tickets each week) to give yourself a 1:1 chance of winning.
That’s not very good odds, and yet another reason why you might want to consider sticking with that nice morning run around the neighborhood instead of training for a swim to Cuba.