Re: Collection Thread #2 for \"Granny Goes To Vegas!\"
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How do taxes work in a group buy type of deal? I really have no idea. Another question, say that a group wins the lottery for an estimated 10 million before taxes. Will the total taxes on this buy be more if there is 1 person in the group versus 10 million people in the group? Or will it be the same?
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the answer to the tax part is something that is still being worked on and will be finalized with all of the investors if this goes off.
i can say this as a generalization. investors will probably have the choice of me paying the taxes for them and them getting the actual net, or me issuing them a 1099 after the event.
for each individual investor, they would simply decide which route they want to go *before* the tourney.
i'll be sending a private letter to all shareholders once the kitty is "closed" that will explain it all. each person will be responsible for their own taxes. if they want me to pay them and send them a net check i will. however, if i get lucky and cash BIG, my tax bracket will be higher than yours so you may want to go the 1099 route as it may net you a bit more.
as i said, all will be 100% kosher, and all will be explained privately to you guys.
hope that helps some
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