Quote Originally Posted by skinmypig:
lol you guys are funny if its a matter of getting in or not getting in and you cant fly out, wel lthe 3rd party agreement is a good choice, Legal paperwork is signed detailing who the entry is under and who is actually belongs to ,,,, And if they cash like one of our guys got 3rd, all went smooth, he paid the taxes that needed to be paid UNDER HIS NAME ....etc..... I understand what your saying, but its not as complicated as you might think as long as you do your due diligence with a notary and the proper paperwork is done.
Simply it gives you a viable option if you can't fly out and really want to get in, thats it
Look - I have been patient with you pimping your services in my thread.
A notary? Huh? Do you realize the cost of a lawsuit if something goes wrong?
Do you also realize that the IRS would consider the transfer of the funds from the "proxy" to the real winner as a secondary taxable event? Let me explain this to you....
1. A person wins 750k under a proxy name and SS#. The proxy collects the money, and hopefully still agrees to turn over the proceeds. If he does, you have to sit down with this guy (in January) to determine what HIS personal taxes will look like in April of the following year (15 months later). Only this will possibly determine the tax rate.
2. Once the proceeds have transferred from the proxy to the real winner - THIS IS ALSO A TAXABLE EVENT. You cant just hand somebody 500k without it being taxable. It could be considered a gift, and therefore anything above the gift tax exemption (about 13k) would be taxable. OR, this might be considered income, and taxed at income rates. Either way - there is no way to hand somebody 500k without it being taxable.
So you might want to get your story straight here.
Worst case scenario is that this proxy decides to take the money and move to Mexico. Or maybe even worse than him moving to Mexico is him just simply saying he isnt going to honor the contract. Then you are hiring lawyers - and by the time it is done - the money is all chewed up - or worse - you are in the hole.
Best case scenario is that he pays the taxes, then you pay the taxes - and you are left with less than 50% of the payout.
Sounds terrific! Sign me up.
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So make the trip. Plus you feel like a badass throughout the process. I dunno why that is lol.
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