Federal Income Taxes Payment Plan

federal income taxes payment plan
What is CA state and federal tax liability to $ 2,380,000 in the house raffle win?

I recently launched a lottery in California, for the grand prize is a house worth $ 2,380,000. specified in the terms and conditions "for Time of closing, all federal and state taxes based on the value of $ 2,380,000 is from by the winner. "How much tax should I expect if I win? Is there a way to defer the taxes, or spread them on a payment plan? How much could be written off based on the value of the house?

The value of the house will include as ordinary income, you would pay 35% of the value for federal tax, plus state taxes in the highest bracket. Expect the control in figure came to somewhere around 50% of $ 2,400,000. Sun Figure on $ 1,200,000 in taxes. Since you would own the house free and clear could be a mortgage to take on the house for $ 1,200,000, which would be only a 50% loan to value. Each bank will do, but you'd need a big win for payments of $ 1,200,000 Loan, unless you're a doctor, you would be beaten out on. If you have the income you can make a $ 2,400,000 dollar house with a $ 1,200,000 dollar loan, and the interest received would be tax deductible. The better alternative would be to sell it. Use the money to pay the taxes from the sale to go and you would away with somewhere around a $ 1,000,000 in his pocket. If you're lucky, you should hire an experienced tax lawyer. They talk about one million U.S. dollars worth of taxes in this Situation, spend 10 grand or something for a full inspection by a really good lawyer is worth it. With some good moves, you can save a half a million in taxes, so someone stop doing what they do and they ask that the house within a company.

Ep105: Legality of Income Taxes