Just in case you are planning ahead, the federal tax on $496,000,000 is not $124,000,000 or 25% as the press often reports. In fact, federal taxes are 39.6% so you will net $299,584,000, but you may not be done yet if you owe state or local taxes too. It’s hardly worth winning is it? 😎
But wait, it gets better. I hope you are planning on living a long time after you win because your good fortune will be subject to the estate tax that will take another 40% in taxes (less your standard deduction of $5 million or so).
There is a lesson here. If you are planning to share the money with family, make them co-winners from the start or you may give more to government than relatives.
Categories: Observations on life