Question: Dieter won the lottery this year which means that he
Dieter won the lottery this year, which means that he will receive $ 400,000 per year for the next 30 years. The present value of Dieter’s prize is about $ 3.75 million. Conscious of the tax benefits of income shifting, Dieter irrevocably assigned one-fifth of every annuity payment to his daughter Heidi. What are the effects of these events on Dieter’s taxable income?
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