No Promises here!
From the associated press:
“BOSTON — What was supposed to be a festive New England Christmas tradition has turned sour for two former friends who are taking their fight over a $200,000 winning lottery ticket to court.
Brenda White, 55, of Plaistow, N.H., won the $200,000 on a Massachusetts State Lottery $5 scratch ticket appropriately called “Bah Hum Bucks” during a Yankee swap party on Dec. 15 in Haverhill.
In a Yankee swap, participants have the option of either keeping a gift they choose, or swapping for a gift selected by someone who preceded them.
White swapped for the lottery ticket originally selected by Franco Sapia, 39, of Derry, N.H.
Before scratching the ticket, she promised to split any winnings with Sapia, according to a complaint Sapia filed in Essex Superior Court. She didn’t, and Sapia is claiming half the jackpot in his lawsuit, saying there were several witnesses to the promise.
A judge has agreed to freeze the jackpot until the matter is resolved.”
Seriously? You can’t make off-the-cuff comments to anyone anymore! After they pay between 28-39.6% in federal taxes, plus any applicable state taxes and probable penalties for failure to make estimated tax payments during the year, they’ll spend a good portion of their after-tax earnings going to court.
Depending on how the judge rules, even if they are ordered to split the earnings, each could end up paying taxes on the ENTIRE amount (the IRS sees “sharing” as your choice and therefore can tax you on the entire amount even if you’re giving a portion to someone else).
After all is said and done, they’ll be lucky if they walk away with $30,000/piece.
