Tax Question pertaining to Internet Bonuses

[TrendYourFriend]

I'm assuming that all bonuses you receive should be claimed as "other income" on your taxes?

An argument could be made that bonuses are a 'gift' but I don't know what the tax implications of this claim would be.

[kslghost]

Bonuses are taxed, yes. So is rakeback, etc. I am not a CPA or tax expert, but I think this is the consensus.

[UF_Gators]

It's not a gift since you are required to play to 'earn' the bonus. There are usually no 'gifts' in business transactions for tax.

[5thStreetHog]

How do most of you guys keep bonus earnings in your record keeping? I guess its just the fact the you claim it period.But just curious if your add bonus to your session records as you earn it,or add it in one lump some 1st of month?Or whatever,silly question i guess , just curious.

[kslghost]

I just write it down. When its released is when I would care.

[Sand]

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How do most of you guys keep bonus earnings in your record keeping? I guess its just the fact the you claim it period.But just curious if your add bonus to your session records as you earn it,or add it in one lump some 1st of month?Or whatever,silly question i guess , just curious.

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I keep a daily tally (in excel) of daily win/loss and daily bonus. This adds to a total daily win total. This is not only the way I think it is the most correct to report it, but it is very tax advantageous if you are a recreational player (pro player doesn't matter).

Remember you have to report winnings and losses seperately on your taxes. By adding the bonus money in daily you significantly reduce your losses. I keep track of loss total seperately as well for tax purposes.

[Vern]

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How do most of you guys keep bonus earnings in your record keeping? I guess its just the fact the you claim it period.But just curious if your add bonus to your session records as you earn it,or add it in one lump some 1st of month?Or whatever,silly question i guess , just curious.

[/ QUOTE ]

I keep a daily tally (in excel) of daily win/loss and daily bonus. This adds to a total daily win total. This is not only the way I think it is the most correct to report it, but it is very tax advantageous if you are a recreational player (pro player doesn't matter).

Remember you have to report winnings and losses seperately on your taxes. By adding the bonus money in daily you significantly reduce your losses. I keep track of loss total seperately as well for tax purposes.

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Same, I have an excel spreadsheet with a column for each account, I know my winning and losing sessions from PT, so everything else must be the bonuses and I declare it as other income.

[yellowbastard]

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How do most of you guys keep bonus earnings in your record keeping? I guess its just the fact the you claim it period.But just curious if your add bonus to your session records as you earn it,or add it in one lump some 1st of month?Or whatever,silly question i guess , just curious.

[/ QUOTE ]

I keep a daily tally (in excel) of daily win/loss and daily bonus. This adds to a total daily win total. This is not only the way I think it is the most correct to report it, but it is very tax advantageous if you are a recreational player (pro player doesn't matter).

Remember you have to report winnings and losses seperately on your taxes. By adding the bonus money in daily you significantly reduce your losses. I keep track of loss total seperately as well for tax purposes.

[/ QUOTE ]
Same, I have an excel spreadsheet with a column for each account, I know my winning and losing sessions from PT, so everything else must be the bonuses and I declare it as other income.

[/ QUOTE ]

I keep all my financial data from poker in quicken. I have seperate asset accounts for each poker site and make catagories like Poker:Winnings:online:bonus to record the transactions. At the end of the year I can create customized reports that tell me exactly how much I made from bonuses, rakeback, ring games, tournaments, ect...

[Vern]

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How do most of you guys keep bonus earnings in your record keeping? I guess its just the fact the you claim it period.But just curious if your add bonus to your session records as you earn it,or add it in one lump some 1st of month?Or whatever,silly question i guess , just curious.

[/ QUOTE ]

I keep a daily tally (in excel) of daily win/loss and daily bonus. This adds to a total daily win total. This is not only the way I think it is the most correct to report it, but it is very tax advantageous if you are a recreational player (pro player doesn't matter).

Remember you have to report winnings and losses seperately on your taxes. By adding the bonus money in daily you significantly reduce your losses. I keep track of loss total seperately as well for tax purposes.

[/ QUOTE ]
Same, I have an excel spreadsheet with a column for each account, I know my winning and losing sessions from PT, so everything else must be the bonuses and I declare it as other income.

[/ QUOTE ]

I keep all my financial data from poker in quicken. I have seperate asset accounts for each poker site and make catagories like Poker:Winnings:online:bonus to record the transactions. At the end of the year I can create customized reports that tell me exactly how much I made from bonuses, rakeback, ring games, tournaments, ect...

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My wife and I use quicken, the sad part is I never thought of this. The good part is my wife cannot easily look up my bankroll and see it as spendable monies.

[LotteryOrPoker]

Bonus is income, you are required to pay tax on all income.

[TrendYourFriend]

This is the exact same way I track gambling related income.

Unfortnately, this method is incorrect according to the IRS but I seriously doubt there would be any adverse consequence if you were auditted since the net result is the same.

[Sand]

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This is the exact same way I track gambling related income.

Unfortnately, this method is incorrect according to the IRS but I seriously doubt there would be any adverse consequence if you were auditted since the net result is the same.

[/ QUOTE ]

Yep - you are supposed to track by session. Unfortunately for the online multitabler a session is pretty ambiguous. The closest the IRS has come to defining it is "when you sit down to play and then get up" it is a session. This dates back to an opinion in which they ruled that taking a break for lunch caused there to be two sessions.

The rules about playing different levels, two sites at once, etc. are simply not on the map. I just go by when I plunk my butt in the seat and when I get up.

I also track bonii by a daily tally as well, since this seems closest to what the IRS wants (as well as being very tax advantageous).