2016 McDonalds Monopoly Mega-Pool

Not really simple at all. But if we use your scenario then you have Person A who is claiming the winnings and Person B who is not and will just get his portion after all the taxes are taken care of. So A wins 10k and they are in the 25% tax bracket for Federal. So they would pay 2500 in taxes and still be left with 7500, except what about the state? Depending on what state they live in they would also have state tax to pay on those winnings, well what if B doesn't have state tax but A does? For simplicity sake let's say they live in Florida and there's only federal taxes, so now A pays 2500 and splits the 7500 with B. All is well right they paid the taxes and split the money so it must be ok. Well now B gets audited and they see a large deposit from those winnings, well now that money that was already taxed is going to be taxed again. So you see it's not that simple, now if B is never audited and they don't catch it then that's a different story. But your scenario would not be the legal way to claim the winnings.

The only way this makes sense is for them to split it initially and each pay the taxes on each half when they file income taxes, or send in estimated payments to offset the gain. I guess it's just trusting a complete stranger you met on the interent to actually give you your half, I mean only one can claim it so who gets to be the one to do so.

 

I agree it's a lot to trust a stranger, but I would trust someone of TW a lot more than I would if this same scenario popped up on Craigslist casual encounters

But, in that scenario, why not person A just pay taxes out of the winnings and once that is all said and done(federal and any of their own state taxes) "gift" the remaining portion that they split to the other(s). That is legal and I don't think gifted money is taxed to the person receiving? Which would be enough for the auditor if that happened.

But, the real question is...how do we split the Big Macs?

 

Cash is king.

 

@Sub_Par do you have something to announce?

 

No, just the accountant in me coming out. And yes you can gift up to 14k to an individual in one tax year and the recipient does not pay taxes on that money. IRS would have to prove it really was a gift and not just a way to get around paying taxes.

@FreidTaco cash is king but once it goes into your bank account it's now traceable, and can be seen by the IRS.

 

we could abolish the IRS and the income tax.... and everyone could also not have the 15 damn pieces ive already got/found (found 6 pieces on the side of the road)

 

I'm lovin' it!

 

You know, cash or various other forms of tender can be safely stored long term in non-bank locations.

 

Right but like I said if you deposit said cash into your bank account is when it can be seen by the IRS. Obviously you can store it wherever you like if you don't want to pay taxes on it.

 

Bingo! Oh wait, i mean monopoly.

 

Won a quarter pounder w/ cheese or buttermilk chicken when I got done with jury duty today.

 

picked up Connecticut, States(rpt),Atlantic (rpt), and Park Place