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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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what is the tax benefit of selling lottery winnings to a finance

Customer Question

what is the tax benefit of selling lottery winnings to a finance company.List of authorities for your position for using correct citation.
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello cvd,

 

The biggest advantage to doing this is the fact that instead of receiving structured payments each year, you will get a lump sum settlement all at one time. You can then invest that money and let it earn interest or dividends.

 

Also, once the lump sum settlement is received, then in future tax years these structured payments no longer need to be included as part of your taxable income each year. Which will keep any other income you may have from being taxed at a higher rate.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you cvd

 

 

Customer: replied 6 years ago.
Relist: Incomplete answer.

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