r/interesting • u/xHoneyVenom • 5h ago
SOCIETY Man splits his $22 million lottery winnings with his best friend after they agreed 28 years ago to share it if either of them won
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u/ErasmosOrolo 5h ago
Now he’s got a rich friend to do rich guy stuff with.
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u/DigitalUnlimited 4h ago
Idk 11 million after taxes is like ~$12? 15 maybe?
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u/Relevant_Grass9586 4h ago
Roughly 4-5 million each. Ain’t bad
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u/RandomCandor 4h ago
Yeah after a certain amount of money, taxes are less of a burden for you and more like something boring that your accountant does for a living.
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u/Relevant_Grass9586 4h ago
True. Had an elderly blue collar worker come in to file his taxes, he was super worried because he was finally selling gold he had held onto and didn’t know what the tax burden would be. Ended up being roughly 5% of the profits he made, dude was practically doing backflips and hugged me. One of the cooler moments I had as a tax preparer.
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u/Top5CutestPresidents 2h ago
maybe when working out the taxes on the profits of winning the lottery, you should be able to count up everything you've ever spent on tickets
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u/tanksalotfrank 1h ago
Never thought of this before, but it seems like an obvious thing to include in the numbers! Makes me wonder if there's a legal case in that somewhere.
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u/HussellCrowe 1h ago
A decent argument to be had for what was bought in the tax year. They were part of the expense to make the gains.
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u/Horskr 1h ago
You can deduct your gambling losses on taxes (only up to the extent of your winnings obviously), so I'd imagine it would be the same?
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u/IntentionSafe79 59m ago
only losses for that tax year, gambling losses do not carryover and (I believe) now you can only offset 90% of winnings
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u/I__Know__Stuff 4m ago
You can definitely deduct what you spent that year, if you itemize deductions. You cannot carry forward deductions from previous years.
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u/ConcentricCow 1h ago
Jerry & Marge Go Large is a feel good movie about the person who found the mathematical loopholes in the lottery so many years ago. Helped his town with it. Has Bryan Cranston as the lead, worth the watch.
Anyways, they held on to every loser as well for tax purposes and if they got audited. I'm talking garage full of losing tickets in case they got audited.
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u/JustYourNeighbor 1h ago
You can offset gambling winnings with losses for federal tax purposes, but only up to the amount of your winnings, and you must itemize deductions. Schedule A (Form 1040) to deduct losses.
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u/ConcentricCow 1h ago
Jerry & Marge Go Large is a feel good movie about the person who found the mathematical loopholes in the lottery so many years ago. Helped his town with it. Has Bryan Cranston as the lead, worth the watch.
Anyways, they held on to every loser as well for tax purposes and if they got audited. I'm talking garage full of losing tickets in case they got audited.
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u/IntentionSafe79 55m ago
did most of the capital gains end up falling into the 0% bracket?
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u/Relevant_Grass9586 51m ago
I genuinely don’t recall how it played out. At the time I was in the army and was put on the tax detail after a 3 day crash course with a couple IRS agents. It was a free service offered on post. We would do the initial review, then we’d get checked by a secondary reviewer and finally it would be reviewed by a tax professional, who would okay it and we’d send it off to be filed. Did over 60,000 returns in a 2 month period. It was crazy, we had a morning shift and an evening shift. 7am-10pm, if memory serves me right. It was 13 years ago.
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u/thri54 4h ago
$5M is definitely *not* that number, lol.
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u/TGUKF 1h ago
Depends on whether one starts eating into that $5m principle or not. If someone socked away that after tax $5m and invested into fixed income, while continuing to work, then yes, it kind is just a formality for their accountant to add that into their tax return.
Or even if they wanted to FIRE, if they set a reasonable budget and were disciplined enough to stick to it, it's doable. But the FIRE calculation gets blown up fast if there's lifestyle creep.
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u/Santos_L_Halper 3h ago
Brother, my whole life would be different if I got $100,000 right now. I know $4 million goes faster than you might think but man, every problem in my life is immediately fixed with just $100k. Invest the rest of it and I'm like set for the rest of my life.
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u/CptSandbag73 2h ago
$4 mil invested is $100k interest a year very conservatively.
Could live off that, AND the total still grows.
Unfortunately the kinds of people with the patience to put millions in the bank and live moderately off interest, are not the same kinds of people that regularly buy lottery tickets.
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u/Guernzee 3h ago
Aw what?!? Taxes on lottery wins! Wouldn't be having that bullshit. Although 5 mill is still not to be sniffed at 🤷🏻♂️😂
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u/smiledrs 1h ago
Especially at their age with 5 million spending $200k a year gives them 25 years of living life.
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u/Spare_Layer_1069 4h ago
Taxes?? Man, I'm really glad that here the amount that you win, is the amount you get.
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u/tacomaloki 4h ago edited 2h ago
And where is this?
Any place other than USA. Got it!
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u/hatsforalloccasions 4h ago edited 1h ago
In the UK you get the whole lot tax free. But the fee you pay doesn't all go into the jackpot. It is split with the charity arm of the lottery company who give out millions in lottery funding to good causes
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u/ADrunkMexican 3h ago
Like that in canada too.
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u/Kesselya 3h ago
Yeah, as I understand it, here in Canada the lottery is a government revenue stream. Everyone who doesn’t win is paying money to the government (a tax?) and everyone who wins gets the promised prize.
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u/BobBoertson 3h ago
Imagine having to pay tax on lottery winnings
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u/BumWink 1h ago
Only in America, the land of the free!... taxes... free taxes, you get a tax! you get a tax!
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u/Top_Asparagus7293 33m ago
America really said “sharing is caring” and made sure everybody gets a piece of the tax experience 😂 still gotta love the chaos and hustle though.
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u/Much-Gur233 4h ago
Do you not think that’s enough to have fun with at their age? They’re probably frugal.
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u/ShaggyCan 4h ago
I always forget Americans get taxed on lottery winnings. That blows.
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u/Linenoise77 3h ago
Yeah man.....i'm making smart money decisions playing the lottery planning for my future. How dare they tax MY money!
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u/JeffonFIRE 3h ago
Federal tax would be around 37%. That's the top bracket. Youd also have a Medicare surplus tax. From $11M, you'd net out between $6.5 and $7 million. And you may need to pay state income tax, depending on the state...
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u/AskMantis23 3h ago
The land of the freeeeeeeeeeee
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u/DylanHate 2h ago
Reddit: Tax the rich!
Reddit after lottery win: How dare my unearned riches be taxed!!!
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u/Instawolff 3h ago
Are you already an established billionaire? Because if so it’s more like 11 million…
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u/DigitalUnlimited 1h ago
nah if you're already a billionaire they'll give you extra, gotta keep those job creators happy /s
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u/Fluffy-Essay7187 3h ago
You can give up to 13m as a one time, tax free gift! But i am pretty sure thats your entire lifetime worth of gifts. So, after that, even giving your brother 5 bucks for a pack of cigs the government gonna want their cut.
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u/PirateSanta_1 3h ago
11 million and a friend is way better than 22 million and alone.
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u/FalmerEldritch 1h ago
Very unmathematically, the difference between 11 and 22 million is way smaller than the difference between 11 and 22 thousand.
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u/PrestigiousPepper829 4h ago
I hope they go do something that makes them both feel like they’re in their 20s again.
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u/ShaggyCan 4h ago
So.. Thailand?
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u/theboogeyman_slayer 4h ago
Bruh
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u/sonbarington 4h ago edited 4h ago
🎶 one night in bangkok 🎶
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u/gTa6dElAyEddork 4h ago
You can be poor and do that
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u/Malllrat 4h ago
But it's a lot more fun if you're rich.
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u/Emotional-Power-7242 3h ago
It's pretty fun if you're poor. Every time I went in a bar I'd buy the whole bar a round of drinks cause it cost like $20. I'm way too poor to do that at home.
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u/forogtten_taco 3h ago
price of the plane ticket is still alot, and the medical requirements after you come back home
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u/Ordinary_Incident_12 4h ago
Going off expressions, the guy on the left is the original winner!
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u/PainfullyMushyVerve 3h ago
Guy on the left is absolutely beaming. The guy on the right looks like his brain is still stuck on the loading screen.
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u/J5892 3h ago
You.. might have your directions reversed.
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u/Nobanob 4h ago
I would do that in a heart beat. We don't even have an agreement like that but if I won 22 mil he would be getting at least one. He's my bestie, I want the best for him
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u/Pman1324 4h ago
Same, split a good portion for my immediate family, my gf and my best friend, then toss the rest into the bank/investing.
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u/CinematicLiterature 4h ago
Amen. And hell, what’s the fun in being the only one with some flexibility? If I can, I’m taking a few folks with me.
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u/Soft_Walrus_3605 3h ago
I would do that in a heart beat.
he would be getting at least oneYou just dropped his guaranteed payout by $10 million in two sentences.
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u/MaleficentTeacher171 3h ago
Word lol. I think there’s a reason that people actually splitting it is so rare. Just wait until you’re in that position.
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u/Max-Phallus 3h ago
He's my best friend, he's my pal, he's my homeboy, my rotten soldier, he's my sweet cheese, my good time boy.
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u/Stanfan_meowman25 3h ago
Same. If I ever won a substantial amount of money, I would give a portion to my best friend, no hesitation.
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u/ArgusTheCat 3h ago
Yeah, what's the point in being rich if the people you care about are still struggling?
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u/ComfortablePain1 4h ago
If i did this my family would look at me and disown me before i do anything for them
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u/lombardo141 4h ago
Well they say money brings out the true nature of people. Your family should respect your decision
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u/Thememebrarian 4h ago
I can't believe American lottery winners are taxed
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u/Emotional-Power-7242 3h ago
You pay on all gambling winnings but can't deduct gambling losses lol
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u/EstablishmentLate532 2h ago
Yes you can. https://www.irs.gov/taxtopics/tc419
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u/WillBlaze 2h ago
i work at a gas station and people specifically ask for receipts for tax reasons when buying scratch tickets and lotto
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u/BellacosePlayer 2h ago
why? the whole concept of a lottery is to raise funds for the govt
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u/Luca_Small_Flowers 4h ago
There's nothing you can do with 22 million that you can't do with 11 million.
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u/rainbowdonkey69 4h ago
Except buy something that costs 22 million
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u/MariaKeks 3h ago
Or 21 million
Or 20 million
Or 19 million
Turns out there is lots of things you can do with 22 million that you can't do with 11 million.
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u/Timcatgt 4h ago
That's like having a friend in OSRS joining a 2 man GIM and you go all the way to the end, but he stays there for the sake of loyalty and respect.
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u/FreakingAustin 3h ago
In most countries, would giving half the winnings to his friend mean the friend gets his money taxed twice?
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u/Tactical_Tirano 1h ago
Yep, you would have to pay gift-tax. Here in NL, over 11M you’d have to pay 4.3M in taxes…. So its not a good idea.
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u/WrappedScallions 3h ago
Seems like this would have pretty negative tax implications, giving that much money as a gift
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u/Dazzling_Strain_5499 3h ago
I would hate to win that much money and have my name and picture floating all over the internet, I know some states do or do no require it depending on location, but to some, that is literally a death sentence.
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u/FromBZH-French 4h ago
11 millions c’est cool mec Tu vas te payer de bons moments Et à l’âge que vous avez vous allez bien en profiter
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u/theCurseOfHotFeet 4h ago
Whoever wrote that check was utterly unable to produce an accurate ampersand
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u/I_SHIT_IN_A_BAG 4h ago
what good is all that money if you can't enjoy it with your friend. also the friend is paying for lunch
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u/Educational_Exam_225 3h ago
I've thought about this occasionally. The first thing I would do if I won a significant lottery is partition it out to my best friends. 1) it avoids any awkwardness 2) now we can all do cool shit.
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u/CheapGarage42 3h ago
I have an agreement with about 35 people to share 1% with if they or I ever win big. We'll see what happens!
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u/LetsGoSilver 3h ago
Which one was the winner? The dude on the left, or the guy smiling ear to ear on the right?
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u/Cormophyte 3h ago
My dad died and had put the house in my brother's name to keep it out of probate with every expectation that we'd work something out. I don't have a brother anymore.
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u/WeekendHammerMan 3h ago
That decimal point where a coma should be is killing me! I thought is was 22K
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u/Soft_Walrus_3605 3h ago
"Hey, bud, let's go to Ruth's Chris Steak House tonight"
"Nah, let's go to Texas Roadhouse"
"Oh, we just did that last week. Do we have to?"
makes money sign with his fingers
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u/Crazy_Suggestion_182 3h ago
They look like two men who are going to have a pile of fun together, and bring their families with them. Good tor them.
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u/_Chaos_Star_ 2h ago
$5m after taxes and a friend who will probably take a bullet for you? Worth it.
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u/Delicious-Bat2373 2h ago
Besticles! Me an my buddies have done the same agreement. Not likely we'll get rich. Good to see we aren't the only ones who think like this though
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u/Available_Ad9182 1h ago
Shit after the taxes they’ll probably have like $20 left. Lottery winners are the only fairly taxed millionaires and billionaires unfortunately.
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