can i file as a non-professional if i have no other job?

[schwza]

and would i even want to? i definitely fit any reasonable definition of a pro, no question. i have no other job, i play more or less full-time, and i support myself with poker. but my cpa asked why i was filing as a professional, when i just assumed the answer was that i had to. i guess the advantage would be to avoid self-employment tax.

i live in mass. if that matters.

[Sniper]

The first thing you should do is calculate it both ways and see which results in less taxes, in your specific situation.

In many cases, you'll find that filing as a pro has advantages. Including extra deductions and retirement benefits, that offset the SE tax.

[pokerstudAA]

You can certainly file as a non-pro. If later the IRS decides that you must file as a pro because the majority of your income came from gambling they will let you know, you will need to amend your return, and might owe a small penalty on the amount you underpaid.

I have never heard of this happening to anyone.

[BigAlK]

[ QUOTE ]
I have never heard of this happening to anyone.

[/ QUOTE ]

I've seen at least 1 or 2 threads (believe it was in this forum) where it did happen.

[pokerstudAA]

[ QUOTE ]
[ QUOTE ]
I have never heard of this happening to anyone.

[/ QUOTE ]

I've seen at least 1 or 2 threads (believe it was in this forum) where it did happen.

[/ QUOTE ]

My mistake then. Actually, I seem to remember the thread about that. Didn't the guy send a letter explaining to the IRS why poker was a hobby and not a profession (or something like that). Any idea what happend/results?

[BigAlK]

[ QUOTE ]
My mistake then. Actually, I seem to remember the thread about that. Didn't the guy send a letter explaining to the IRS why poker was a hobby and not a profession (or something like that). Any idea what happend/results?

[/ QUOTE ]

IIRC he convinced the IRS that he shouldn't be considered a professional. The OP could probably find this thread (or threads) with a search to get more details as to why the IRS thought he should be considered a pro and his counter arguments. I believe in his case he was a student who's only visible income was from poker winnings, but the majority of his living expenses were from grants and student loans.

I'm no expert on this, but (assuming adequate record keeping) I'd think that for most people who are truly living on their poker winnings that filing as a pro might be the best way due to wins/losses getting netted on schedule C rather than wins counting as income and losses having to be itemized. For someone who has enough deductions to itemize without the poker loses this might not be true. If OP is truly in an area where either way might work the poster who suggested trying it both ways and seeing how they are different nailed the best solution.

[bottomset]

[ QUOTE ]
[ QUOTE ]
I have never heard of this happening to anyone.

[/ QUOTE ]

I've seen at least 1 or 2 threads (believe it was in this forum) where it did happen.

[/ QUOTE ]

I'm pretty sure the poster here won the appeal of sorts and was able to stay non-pro as intended, in the only thread I remember on the subject

[Zele]

I think it was geormiet that you guys are thinking of and I believe he was some sort of student during the tax year in question, which was part of his argument against being pro. I haven't heard of anyone that has fought for non-pro status without having a job or being a student, and I've heard all sorts of different opinions from different tax experts about how this would end up.

[Chamonyx]

"i have no other job, i play more or less full-time, and i support myself with poker"
+
"i live in mass"

This is fiscally irresponsible. Move to NH.

[schwza]

[ QUOTE ]
"i have no other job, i play more or less full-time, and i support myself with poker"
+
"i live in mass"

This is fiscally irresponsible. Move to NH.

[/ QUOTE ]

i'd much rather spend my money to live in a place that i'll actually enjoy. when i do move next it's hopefully going to be to san fran, not to a place that has lamer cities and colder weather.