man wins home irs wont let him have it.. (1 Viewer)

[dtc]

What are the odds that if he owns a house, that he would have enough equity in it to even pay off the taxes on the new one? The tax system in this country is so ridiculous it is sickening.

It takes taxes to keep the lights on and the streets clean and levees from caving in. Why on earth would you think winnings should be treated more favorably than your salary? For that matter, I completely agree with Boone Pickens and find it mentally challenged that capitol gains are taxed at less than other earnings.

Earnings are earnings.

 

[PurpleBlack&Gold]

It takes taxes to keep the lights on and the streets clean and levees from caving in. Why on earth would you think winnings should be treated more favorably than your salary? For that matter, I completely agree with Boone Pickens and find it mentally challenged that capitol gains are taxed at less than other earnings.

Earnings are earnings.

I don't think we should be tax free, thats just silly. But the fact that you will be taxed for anything and everything that you use and/or acquire in your life is ridiculous. The obvious example is buying a car, when its bought new taxes are paid on it, and every time its resold taxes are paid on it. I just think its a scam. Especially with the awesome job the government does of keeping the levees from caving in and filling potholes. You have income tax, great. Then you have sales tax. Sounds like double dipping to me.

 

[dtc]

I don't think we should be tax free, thats just silly. But the fact that you will be taxed for anything and everything that you use and/or acquire in your life is ridiculous. The obvious example is buying a car, when its bought new taxes are paid on it, and every time its resold taxes are paid on it. I just think its a scam. Especially with the awesome job the government does of keeping the levees from caving in and filling potholes. You have income tax, great. Then you have sales tax. Sounds like double dipping to me.

It is double dipping. There's double, triple, quadruple and brazillion dipping. I agree govt spends too much, but as it stands we tax too little. The increase in federal and state and local debt is going to be a problem in the future to an even greater extent that it is now. So, we can whine and moan about semantics of how its collected, but if you don't want to pay gift, estate, windfall taxes, then we'll just have to agree on 65% for federal income tax. One way of the other, its going to get paid or we'll borrow ourselves into the next Great Depression.

 

[bearsfanforever]

The roadblock here would be if an individual has a poor credit history. This will either prohibit them from taking out a loan that large, and if approved, the interest rate would be ridiculous. To me, it would make the most sense to take out a loan to pay the taxes, if the person can do so.

Not if the house is paid for and worth more than the loan amount....

 

[DaveXA]

Not if the house is paid for and worth more than the loan amount....

This isn't necessarily true. Someone's income/credit might be too bad to get even a collateralized loan unless the bank makes a loan the homeowner obviously can't pay and then the bank taking posession of the house in a fairly short period of time. It's unethical to write a loan you know a person obviously cannot pay, even if it's just taxes.

The solution is simple though. Sell the house without taking posession of it and pay taxes based on the sale rather than on the assessed value when actually won. I'm not 100% sure if that can be done, but in today's market, there's no way the house is worth more than the value stated.

After the taxes are taken care of, use the remaining winnings to pay down debt and save any that's left and live in a home that is affordable.

 

[bigdaddysaints]

Maybe this guy already owes back taxes, thats why they will not let him have it.

 

[Det. Brees]

i read the back of the tickets and it say. the irs will tax all prizes over 5k and before anyone can take possession of the prize they must pay the tax as if its a cash prize....

 

[DaveXA]

Well, then there really are only two options. Sell the house and pocket the difference or borrow enough to pay the taxes using the house as collateral and pay the monthly note. As bad as housing is right now, unless the house is in a healthy area, it will be hard to justify the note for the taxes unless the winner has decent credit. I don't much care for property winning stuff. If I were to win something, I'd much rather it be cash. Liquidity is king these days.