Question about taxes

[chasingdreams85]

Hey I am new here but I just started getting into online poker about a month ago and lately have been doing well. Is this enough info for taxes when they come around next year?

BTW I am considering each day as a "session"

Example:

February 2, 2006
Poker333
Starting: 402.03
Final: 475.40
Profit/Losses: +73.37
February Totals: +73.37
2006 Totals: +594.68

February 3, 2006
Paradise poker
Starting: 284.00
Final: 924.50
Profit/Losses: + 640.50
February Totals: + 713.87
2006 Totals: + 1235.18


February 4, 2006
Paradise poker Deposited 500 to get a bonus
Starting: 1424.50
Final: + 2102.5
Profit/Losses: + 678.00
February Totals: + 1391.87
2006 Totals: + 1913.18

[Nomad84]

You should refer to IRS Publication 529 for more information. According to page 12 of that document, your records should include at least the following:

1. The date and type of your specific wager or wagering activity.

2. The name and address or location of the gambling establishment.

3. The name of other persons present with you at the gambling establishment.

4. The amount(s) won or lost.


My thoughts:

1. I think it would be a good idea to be more specific about what you are wagering on. Just something like "$5/10 Hold'em" or something like that.

2. I do the same as you. Other than the name of the site, I don't think it's necessary to record anything else. The other information is readily available and can be provided if necessary. In the future, I will probably add a section to my gambling diary that includes slightly more information on each site so that it can be referenced by looking up the name I record.

3. There isn't a lot you can do here. You are playing at home by yourself, more than likely. If friends of mine enter tournaments that I enter, I record that. Otherwise, I think PT records all of the info that you might need for this.

4. Pretty straightforward. The only complication here relates to how you account for bonuses and rakeback. I think that as long as you account for it and you are consistent, you should be fine. Personally, I break it down by what I earned specifically by the hands played in that session. If I clear half of a bonus today and half tomorrow, I add half of the value to each session. Adding it all when it is released is probably just as good, but I think you should pick one method and stick to it. Adding it all when it clears is obviously easier, but it isn't my method of choice.

I don't know what has been written regarding the definition of a session, but I'd be careful using each day as a session. Of course, it's not too likely that it will ever even matter. Even so, I don't like the idea of playing for a couple of hours in the morning, then a couple of hours at night, and considering them the same session.

Obviously, this post comes with the standard disclaimers. I am also trying to learn to make sure I record everything correctly. I didn't last year, so now things are a lot tougher to figure correctly for 2005.

[chasingdreams85]

Thank you very much Nomad.

[Nomad84]

[ QUOTE ]
Thank you very much Nomad.

[/ QUOTE ]

No problem. While I am keeping records as described above, you would still be well advised to speak with a tax professional.

[MrBrightside]

do other people consider each tourney a session? that's what I did last year? I don't play ring. I play sng's and multis.

[Nomad84]

I'm not the person to ask. I don't play tourneys, other than the occasional cheap SNGs with friends when I'm just screwing around, and the occasional freeroll. It doesn't matter how I count my freerolls since I don't usually play anything else while I'm playing. If I'm in all four Stars VIP freerolls, it doesn't matter if I count them as one session or four since there is no possibility of incurring a losing session. In fact, as bad as I am at MTTs, it usually works out as a break even session (or four) [img]/images/graemlins/tongue.gif[/img]