Tue. Jul 16th, 2024

LAFAYETTE — An Indiana county may not see its share of a $435.3 million Powerball jackpot because the anonymous winner claimed his winnings under a limited liability company.

The winner is from Tippecanoe County, but county Treasurer Jennifer Weston told the Lafayette Journal & Courier (http://on.jconline.com/2nnMeeM ) that it’s unlikely the county will see its 1.1 percent income tax because the winner formed an LLC.

The winner walked away with $189.1 million, which Weston said would’ve earned the county more than $2 million.

“What I am guessing is that we won’t see that money,” she said. “He indicated giving to charities, however, so the adjusted gross income is going to decline based on what is done with the charities.”

Purdue University economist Larry DeBoer said forming an LLC is a way to protect the winner and avoid income tax.

“What this is, is sophisticated tax stuff,” DeBoer said. “The money would go into a fund the winner doesn’t touch, but then draws income out of.”

Indiana secretary of state’s office records show the money is being paid to Bohemian Financial LLC, which was established March 1 and lists a Lafayette attorney as its registered agent.

DeBoer said ultimately all of the taxes will have to be paid, whether it’s to his current county or another.

“With the LLC, he might find himself in a lower tax bracket as a corporation,” he said. “This could be a way of putting it into an account to draw interest, but it will all be accounted for in the end.”

Article from http://www.whio.com/news/local/tippecanoe-county-may-not-see-income-tax-from-lottery-win/p2iMpMDN9t31Hw1catMoeO/

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