What would the tax bill be on EAA's sweepstakes Cub?

i guess I will have to change the name on all my organizational memberships over to on of my inactive LLCs. Here in Ohio there is no income tax on the first $250k.
 
Clip4 said:
i guess I will have to change the name on all my organizational memberships over to on of my inactive LLCs. Here in Ohio there is no income tax on the first $250k.
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Doesn't help at the federal level.
 
Clip4 said:
i guess I will have to change the name on all my organizational memberships over to on of my inactive LLCs. Here in Ohio there is no income tax on the first $250k.
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bradg33 said:
Doesn't help at the federal level.
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Doesn’t help at any level. Hiding income in an LLC that doesn’t have any expenses and never has any capital withdrawals, especially a single-proprietorship, is usually considered tax fraud once found in an audit, since single-proprietorships are considered “pass-through” for tax purposes by nearly every jurisdiction.
 
So should Oprah be POTUS? Giving stuff away without thinking of the consequences and costs would seem to make her very qualified. At the very least, she should be in Congress.
 
Never paid tax on a aircraft, nor would I, with the nature of aircraft it's not that hard to avoid getting robbed by the government.

Lots of people ether much be very scared or have waaaay more money than me if they can burn XX% in a easily avoided zero ROI government tax
 
James331 said:
Never paid tax on a aircraft, nor would I, with the nature of aircraft it's not that hard to avoid getting robbed by the government.

Lots of people ether much be very scared or have waaaay more money than me if they can burn XX% in a easily avoided zero ROI government tax
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Do tell how you manage that. And do you think it's legal, or are you just ok with doing it illegally?
 
flyingron said:
Eh, no. You only need to pay the tax on when that quarter's estimated tax is due. Even then, unless you have some really bizarre additional stuff going on, the feds aren't going to assess interest/penalties. There are safe harbor provisions.

You figure out what the tax bill is based on your income brackets (after adding in the plane). 28% or so.

Even the states I am familiar with don't whack you until filing time.
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Uh, yea.... welcome to state taxes. I've done it twice in 4 years. I'm well aware of what they will do. Has nothing to do with Feds.
 
Unit74 said:
Uh, yea.... welcome to state taxes. I've done it twice in 4 years. I'm well aware of what they will do. Has nothing to do with Feds.
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So which state? While I've seen states comb the registration records for PROPERTY TAX and SALES TAX how are they going to know a registered plane is income rather than the FAR MORE COMMON instance of you purchasing it?
 
here, you'll get hit with federal income tax, state income tax, and state sales and use tax, as well as county personal property tax.
And there may be something like a windfall tax, or capital gains tax of some sort thrown in for good measure.
 
flyingron said:
So which state? While I've seen states comb the registration records for PROPERTY TAX and SALES TAX how are they going to know a registered plane is income rather than the FAR MORE COMMON instance of you purchasing it?
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Who said anything about income?
 
Salty said:
Do tell how you manage that. And do you think it's legal, or are you just ok with doing it illegally?
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The state the plane is registered in.

And no I'm not ok with illegal, predatory and zero ROI taxes.
 
Well that got off the ground pretty quick! Haven't had a chance to read all the replies, but I want to say the real catch is that you have to pay all taxes and fees up front to take possession. It's stipulated in the rules. So taking possession and selling to pay the taxes isn't an option.

I'm pretty sure this was examined by a tax professional once and the bill was 5 figures. The issue is it was taxed under "windfall tax" or capital gains, or as gambling income - basically a punitive rate - and not just as a normal use tax or sales tax.
 
deonb said:
Yes but you have $60k that you wouldn’t have had otherwise. You’re not worse off. Even if the tax rate you pay on the $60k is 50% - you’re still $30k better off - nothing happens to the rest of your income or taxes you pay.

It just sucks to write a big check to the IRS, but pocketing the rest of it should make up for it.
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So, my point right from the beginning was that there are many people in the sub $100k annual household income range who would really have to stretch in order to be able to keep the $60k prize. I suspect that many would decide to sell and pay the taxes. This what I meant in the original post, before others got wrapped around the axle about how I worded it.

The progressive tax system does mean that the net percentage of taxes you pay does go up as taxable income increases. And, for some a $60k windfall would mean it would go up a significant amount.
 
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