Poker coaching = tax write-off?

[DMoogle]

I'm 18 years old and have never paid taxes before, as I've never had a job. So I know next to nothing about them. However, this year, I'm going to have to pay taxes as I've made a substantial amount of income playing poker online.

There's a thread in the MSNL forum about poker coaches. Someone mentioned in that thread that poker coaching can be a a tax write-off. Is this true? I've been planning on hiring a poker coach soon, and this would be a nice bonus, considering how expensive coaches can be.

Thanks

[SlowHabit]

If you file as a pro, yes.

It is deduct as a business expense.

[ike]

This is a legit writeoff for sure. Any time you spend some money now with the expectation of making more money later because of what you're buying, its a business expense. Books/dvds/cardrunner's subscriptions all fall into this category as well.

Edit: This is assuming you file as a professional gambler. Poker lessons are not a write-off if you play "recreationally".

[Ron Burgundy]

If you're a pro, you can deduct poker lessons, poker books/magazines/DVDs whatever. If you paid money for something to help you learn how to improve your business, then you can deduct it.

[Kurn, son of Mogh]

The problem here is that the IRS has traditionally required that to file as a Professional Gambler, you need to demonstrate a reasonable expectation of success, which they have historically defined as 3 trailing years of profit as a gambler.

If OP hasn never filed taxes, that will be very difficult for him to do.

edit: not to mention that OP will then owe self-employment tax.

[Ron Burgundy]

The 3-year of profit thing is bogus.

[Kurn, son of Mogh]

[ QUOTE ]
The 3-year of profit thing is bogus.

[/ QUOTE ]

Of course it is, but that doesn't stop the IRS from denying people the use of schedule C.

[Poker CPA]

Kurn

Where is this "3 year" thing in the rules and regulations, or if you like, their publications?

[ifckladyluck]

correct me if im wrong, but arent students exempt from paying taxes?

[NickMPK]

[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

Yeah, you're wrong. Where did you get this idea?

There are certain tuition tax deductions that some students are eligible for, but you still need to file and report everything even if you end up owing no income tax as a result of the deductions.

[Kurn, son of Mogh]

[ QUOTE ]
Kurn

Where is this "3 year" thing in the rules and regulations, or if you like, their publications?

[/ QUOTE ]

I've never seen the exact reg if there is one, but it has been my understanding that the IRS has regularly denied people who have other income from using Schedule C (self-employment) to report gambling wins/losses. Now, I also recall reading somewhere of a case where someone appealed the ruling and won, but I'm not sure if that amounts to case law on the topic. OP needs to ask more questions of someone more knowledgeable than I.

Sorry, but I'm not able to give a more definitive answer than "my friend the CPA told me..." /images/graemlins/shocked.gif /images/graemlins/confused.gif /images/graemlins/cool.gif

[Kurn, son of Mogh]

[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

If you earn money, you must file a tax return. Now there's a threshhold level below which you won't owe any federal taxes, but you still have to file.

If you are a student *and* your parents still claim you as a dependent, they have to claim your income along with theirs.

[crashjr]

[ QUOTE ]
[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

If you are a student *and* your parents still claim you as a dependent, they have to claim your income along with theirs.

[/ QUOTE ]

False. You must file your own separate return. You will need to claim zero dependents if your parents claim you as a dependent.

[Kurn, son of Mogh]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

If you are a student *and* your parents still claim you as a dependent, they have to claim your income along with theirs.

[/ QUOTE ]

False. You must file your own separate return. You will need to claim zero dependents if your parents claim you as a dependent.

[/ QUOTE ]

Thank you. I wasn't sure about that one but figured if I was wrong someone would set me right.

[DMoogle]

Well the main question was answered. I can only write it off if I file as a pro. Which I may or may not (looks like probably not) be able to do.

My step-father to-be is claiming me as a dependent, and we're going to be speaking to a tax consultant, so I guess we'll figure everything out then.

[SlowHabit]

[ QUOTE ]
[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

Yeah, you're wrong. Where did you get this idea?

[/ QUOTE ]
Maybe not. In Canada, students are exempt [not 100% sure].

[Rainbow Warrior]

[ QUOTE ]
In Canada, students are exempt [not 100% sure].

[/ QUOTE ]

Exempt??
wrong

[DavidNB]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

Yeah, you're wrong. Where did you get this idea?

[/ QUOTE ]
Maybe not. In Canada, students are exempt [not 100% sure].

[/ QUOTE ]

In Canada students pay taxes

[Rainbow Warrior]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
correct me if im wrong, but arent students exempt from paying taxes?

[/ QUOTE ]

Yeah, you're wrong. Where did you get this idea?

[/ QUOTE ]
Maybe not. In Canada, students are exempt [not 100% sure].

[/ QUOTE ]


In Canada students pay taxes

[/ QUOTE ]

or we'd all be students...