PDA

View Full Version : Taxes on transfers?

MasterLJ
06-27-2007, 12:20 PM
I'm taking $4k FTP money for a $3500 check overnighted to a friend who is playing some WSOP events.

The $3500 put a big sizable dent in my checking account, so I'm withdrawing the $4k straight away.

What are my tax liabilities on said transaction? Just the $500?
WhiteWolf
06-27-2007, 12:42 PM
Your tax liability is incurred when you win the money at the tables. Your withdraw will incur no further tax liability. Speak to an accountant about this.
Rainbow Warrior
06-27-2007, 12:59 PM
[ QUOTE ]
so I'm withdrawing the $4k straight away.

[/ QUOTE ]

Full Tilt Poker - Your Internet Banker

Let us know how this goes...
AzDesertRat
06-27-2007, 01:06 PM
[ QUOTE ]
Your tax liability is incurred when you win the money at the tables. Your withdraw will incur no further tax liability. Speak to an accountant about this.

[/ QUOTE ]

+1
MasterLJ
06-27-2007, 01:06 PM
[ QUOTE ]
[ QUOTE ]
so I'm withdrawing the $4k straight away.

[/ QUOTE ]

Full Tilt Poker - Your Internet Banker

Let us know how this goes...

[/ QUOTE ]

I've withdrawn $5k checks before and received them in the 5-10 day range. I've had nothing but good experiences.
muxplust
06-27-2007, 01:55 PM
the $3500 would be taxed as winnings
and the $500 should be taxed on the "your-buddy-is-an-idiot" tax

thats a huge vig
MasterLJ
06-27-2007, 04:14 PM
[ QUOTE ]
the $3500 would be taxed as winnings
and the $500 should be taxed on the "your-buddy-is-an-idiot" tax

thats a huge vig

[/ QUOTE ]

FWIW, the $500 was volunteered as thanks for hooking him up on short notice. (He's up $30k+ in the last month, and I've sweated a few of his tournies).

So... I have two conflicting answers.
Legislurker
06-27-2007, 04:24 PM
If you're audited or penalized, documentation counts a lot.
Should have put a comment on the check, get a receipt, etc. Lol, only problem is you might have violated some obscure usury law in your state.
PokeReader
06-28-2007, 07:27 AM
The 500 is income of some type. I am not sure how an accountant would want to classify it on a pro gambling tax return. You could call it a gift, you do get a one time exemption for gifts. You should really talk to an accountant as to how to classify this to minimize your tax liability. I do not think you want to call it a transfer fee, as that if not your business, and there may be limits on the fees permissible in your state. The important thing is that since it went into your bank account you should itemize it in case you are audited.