F
fullmore
Guest
my father-in-law recently won over 1 million dollars in an indian casino and he opted for the lump sum cash instead of annual payments. He got appx. 45% of the original jackpot and still has to pay taxes on it. Of the $500,000 the taxes are estimated at 38%, leaving him a paltry quarter of his initial jackpot.
Upon consulted his tax person, he asked if he could gift $10,000 to each of his children and not pay taxes on that amount. He and I had read of this credit of up to $10,000 per year per person, and were shocked when the tax person said gambling winnings can't be gifted this way without taxation. Does anyone know why this is? And if there are any loopholes to this? Any info would be appreciated. BTW we are both in california, in case laws differ for each state.
thanks
Upon consulted his tax person, he asked if he could gift $10,000 to each of his children and not pay taxes on that amount. He and I had read of this credit of up to $10,000 per year per person, and were shocked when the tax person said gambling winnings can't be gifted this way without taxation. Does anyone know why this is? And if there are any loopholes to this? Any info would be appreciated. BTW we are both in california, in case laws differ for each state.
thanks