In Dickerson v. Comm., TC Memo 2012-60, The Tax Court has held that a taxpayer’s transfer of her interest in a winning lottery ticket to a corporation 49% owned by her and 51% owned by family members resulted in a taxable gift because there was no enforceable contract to share the lottery prize with her family.
Tonda Dickerson worked as a waitress in an Alabama restaurant frequented by a customer who often made gifts of Florida lottery tickets to the workers of the establishment. On Mar. 7, 1999, a customer gave Tonda a winning lottery ticket with a cash payout amount of $5 million (over $10 million if paid out over 30 years). As with many families, Tonda’s family was close-knit and generally had a sharing attitude. It had a tradition of buying lottery tickets and often talked about sharing a jackpot if a family member won “the big one.” In Tonda’s case, however, there was no written sharing agreement to share lottery winnings and she had no documentation to support its existence or terms...
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.