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Question about income tax


jesseps
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I've been wondering for a bit, how it works for people who win the lotto.

 

Lets say you win like $20 million. Do you get taxed once if you made that in one year, or will they tax you every year?

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how would you use it as an income.

 

Let say you win 5M$, when you'll get it, it won't be taxed.

 

But say, you invest it and get 100K$ a year, well that 100K$ will be taxed as a revenue.

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Lottery winnings in Canada are not taxable. However, any interest you make on those winnings, ARE taxable.

 

Let's say you win 10 million $, and let's say that you put it all in the bank, and you get a 3.5% return on it. Well, at the end of your first year, you will have made 350,000$ in interest. This 350,000$ is taxable as income!

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Lottery winnings in Canada are not taxable. However, any interest you make on those winnings, ARE taxable.

 

Let's say you win 10 million $, and let's say that you put it all in the bank, and you get a 3.5% return on it. Well, at the end of your first year, you will have made 350,000$ in interest. This 350,000$ is taxable as income!

 

Ahh okay. Makes sense.

 

Guess if someone wins the lotto they better go to the Caymans or something right LOL

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