I had the same idea the other night while deep in thought regarding my lotto winnings. I'd rather win 9 million than 900 million. Then about 30 seconds later...nah I'll take me chances.

"One less thing to worry about."

"One less thing".

Somebody in New Jersey won the mega millions to the tune of $1.13 Billion.

$865MM Powerball tonight, $416MM cash value. About $262MM after taxes in Texas.

LostInLA07 said:

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I imagine you'd have to somehow tie the yacht to a business and maybe there's a way to take a huge deduction to offset a bunch of income?

I always thought this strategy worked best with cash flow producing and fast depreciation schedule assets though. No clue where a yacht falls. I think you still get bonus depreciation on jets though…so maybe you start a jet charter business, buy a $250MM jet, bonus depreciate the whole thing, and then borrow against it. Charter the jet out to cover the (deductible) interest expense and convert $250MM in taxable income to tax free income with the lease or charter fees covering the loan?

I do know you can use bonus depreciation to wipe out a bunch of taxable income when using a loan to purchase…because you can bonus depreciate based on the full eligible purchase price or cost, not the amount of equity you inject. So you basically get a big write off using the banks money.

Of course that's recaptured whenever you sell, but I suspect you can just use a 1031 exchange perpetually?

Surely some wise CPA can give us the 30,000ft explanation of something like this.

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100% bonus depreciation is getting phased downward each year. For 2023 it is limited to 80% of the cost of the asset, then 60% in 2024, etc. There was a bill passed in the House restoring it to 100%, but don't think it has passed the Senate.

In your scenario, you charter the jet to pay the interest on the loan. At some point though, you have to pay off the loan. You will need $250 million for that.

Section 1031 treatment is no longer available for personal property (for the most part), only real estate. I think I read where boats that are permanently affixed to a dock might qualify, and some have opined that a charter yacht might as well. A private yacht would not. I don't think the charter yacht would fly though under examination and if dealing with a $250 million boat I would think you would be on the audit radar.

I would begin the process of deferred giving trust to private placement life insurance.

I would also probably move to Aspen.

How about this coming Saturday?

$935MM now, $450MM cash value, $283.5MM after taxes.

With that much cash I am going dark for a month or more. Only telling my wife. Telling my boss I'm taking a leave of absence but will check email periodically. Set up a trust and foundation to handle charitable requests. Decide on amounts to gift a select number of friends and family.

Set up trust for the kids (can't access until adulthood; hide how much they'll receive).
Pay off houses.
Buy house in Telluride, CO.
Buy Corvette Z06 and whatever ride my wife wants.

Move the F out of Colorado
Slow travel and volunteer globally
Will the rest to charities.

Spaceship said:

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Stat Monitor Repairman said:

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Somebody in New Jersey won the mega millions to the tune of $1.13 Billion.

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Cash payout of $537.5 million
After tax deposit of $338.6 million
Earn 4% per year and that's $13 million per year to live off and never touch the principal.
Pretty crazy.

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Funny that it's advertised everywhere as 1.13 billion and you end up with less than a third of that in the bank.

Take care of extended family
Buy race horses
Get a Net Jets subscription