JSA wrote:
DavHamm wrote:
JSA wrote:
Something similar has been done in multiple states. In 2017, in North Carolina, a $50k lottery winner sold his ticket for something like $21k. The reasoning - the lottery winner owed back child support and back taxes, both of which would have been claimed from his winnings. So, he pulled an end-run and sold the ticket, then pocketed the cash. He was eventually caught, but, the North Carolina DOR says these private sales happen frequently with "smaller" amounts. This is legal in NC, but, it is a crime in some states to sell a winning lottery ticket. So, one would have to check one's state prior to pulling this stunt. I have no idea what MI law says on the subject.
Cool some facts.. Interesting.
So now this raises 2 questions. If I win now, and Move to Florida in Dec and claim the ticket next Sept. Would I owe Michigan income tax?
Yes. The "income" was "earned" in Michigan. So, you will owe Michigan income tax on the lottery winning.
DavHamm wrote:
Same story but auction it next oct? would this avoid the income tax? I doubt it I am sure they have some law that I would need to go back and amend my tax return, you never can escape the man.I think there is a time limit on claiming the prize. I thought it was a pretty tight window - under 90 days. Might be shorter than that. Not certain, but, I do not think you could wait that long.
But, let's assume you can. The proceeds from the auction would be taxable income on the federal level. So, you would be required to report the proceeds as earnings. But, if you were a FL resident and held the auction in FL and received the proceeds in FL, you might be able to avoid MI tax. I am guessing there is something that would prohibit this, but, I can see an argument for avoiding MI income tax.
1 yr to claim your prize ... quick google
"How long do you have to claim the prize? Depending on where you bought the ticket, prize winners have between 180 days and one year from the date of the drawing to claim their prize. Check the back of your ticket."
Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.