Finding a good CPA

[snoop01]

How would you suggest that I go about finding a good CPA? I have been making big deposits and big withdrawls with my personal banking account seeing as much as 10K in and 10K out almost every month. I'm a newer player still learning the game, but I enjoy the bigger stakes just learning to maintain the BR.

[1p0kerboy]

/images/graemlins/spade.gifweb search
/images/graemlins/spade.gifphonebook

I have a meeting with a CPA today. I'm gonna talk to her and see how familiar she is with gambling taxes.

[snoop01]

Good luck, i guess i will just have to set up meetings and talk to them about gambling taxes.

Thanks

[1p0kerboy]

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Good luck, i guess i will just have to set up meetings and talk to them about gambling taxes.

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All CPAs should be pretty familiar with this stuff.

You could just ask them over the phone about their experience handling these types of taxes.

[grizy]

do what i did... marry one.

.... actually, don't.

[Easy17]

For your personal US tax return as far as gambling goes, you are required to report your gambling winnings (all of them from any source) and you get a deduction for your gambling losses (up to the amount of winnings but not over)

So try to keep track of this information. In the event you get audited, one thing the IRS may do is look at your banking records and attempt to reconcile your cash receipts with your reported income.

[1p0kerboy]

My meeting today wasn't too great.

CPA didn't know much about gambling.

Wife liked her though so I might have to walk her through the steps.

[Berge20]

IMO, if you are going to hire a CPA...why would you want to have to "walk her through the steps"?

If I'm paying someone, they're going to know what's going on.

[1p0kerboy]

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IMO, if you are going to hire a CPA...why would you want to have to "walk her through the steps"?


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You married?

[CPAEvil]

I am the CPA, guys. I specialize in Poker Players and wrote the book on "How To Turn Your Poker Playing Into a Business". I write poker/tax articles for CardPlayer and Bluff and have many pros, such as Chris Moneymaker, Jeff Williams (pokestars Monte Carlo). I am also a poker player so I understand all the "special" things going on out there. Check out my Tax Q&A on pocketfives.com and see my website at pokerdeductions.com

[Berge20]

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IMO, if you are going to hire a CPA...why would you want to have to "walk her through the steps"?


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You married?

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No, you raise an excellent point. /images/graemlins/grin.gif

[1p0kerboy]

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No, you raise an excellent point.

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Actually my wife did. She told me to type that in there. J/K

[*grendel*]

I'm a CPA, and no CPA knows it all. We do something called "research" on issues we are unfamiliar with. That is why we charge the fees we do. We can find the answer, and any CPA who says he "doesn't know" without adding, "but I can find out," either isn't worth a crap or doesn't want your business. Also, let me add that many CPAs are notoriouly conservative and risk averse.

Just my two cents worth...

[I_C_ALL]

I finally sat down with a CPA last weekend. He told me many things I knew(recreational on a 1040 with top line adding winnings on to and taking losses on itemized deduction page while as a professional, using a schedule C to show the "business" income and "business" losses(winnings and losses) and then the net number goes on the 1040.) A poker site once mentioned forming a corporation to better prove to the IRS that your intent is to be treated as a professional and flow the winnings, losses and all related expenses through the corporation. The corporation would accomplish two things:

1. With a subchapter S corporation, you would "pay" yourself a salary of 1/4 to 1/2(flexible, your CPA will recommend an appropriate salary) of the total net income of the company. This would be your winnings minus your losses minus your expenses. You only pay self employment taxes (15.3%) on your "salary". You would pay normal federal income tax on the balance of net income, but wouldn't have to pay self employment taxes on it.
2. THE MOST IMPORTANT ASPECT... According to this CPA, 1 in 10 1040'S with schedule C's are audited. I said, not bad that's 90% likely not to get audited. He then said only 1 in 800,000 sub S returns(1120s) get audited.

This accountant isn't too knowledgable with the specifics of our business, but he knows his business. As someone else mentioned, he can take the information I give him and find the answers because he'll know the questions to ask. That is the most important thing.

In the end, I told him I didn't mind getting audited because I don't plan on hiding anything. He said that's only because I've never been audited. Not sure if that was a little "puffing" on his part, but I'm taking his advice either way.

I found him through a family member. I heard he was married to an IRS agent and liked him immediately. I spoke to another family CPA in my neighborhood and he told me he wasn't comfortable with the gambling income. If you are told this, don't be offended. Say thank you and move on. My new CPA has absolutely no problem with it and even seemed a little interested when I was done explaining.

Last thing, definitely get one. Don't go on your own. When you get audited, they don't look at just one year. You want someone who knows what they're doing. Expect to pay a couple to a few hundred dollars an hour for this advice. If you're not, you're probably not getting the advice you need.