[TorontoCFE]

Poker income for the year, strictly speaking, would be
easiest calculated by:

Value of all accounts Dec 31 2004
+ any amounts due you but not yet in your account (rakeback, tourny winnings not paid out yet)
+ withdrawals made during 2004
- deposits made during the year
- account balances Dec 31 2003

Technically, all profits as calculated above should be declared if you were in the "business of poker" and none otherwise.

Profits are considered taxable wehn earned not when converted to another asset (another account) or when received.
Profit is "locked in" when you get up from the table.

Neteller is just another bank account or asset treated no differently than any other account whether it be bank, mutual fund, brokerage or funds on deposit at a casino cage.

What to declare is really based on the formula:

Earnings from the business of poker (not necessarily ALL poker earnings - this is a key point I can elaborate on)
is your start. You then deduct poker expenses - car and travel expenses, internet connection fees, poker books, courses,etc., the portion of your rent or mortgage related to the space you use only for poker - what ever else you can find. This would give you the net taxable income you need to worry about.

You then can work backwards:
If you have no other income ,you have a personal exemption that allows you to make almost 10k a year taxfree.
Deduct that and any other deductions you have (spousal, educational, etc.) andyou have the amount of income sbuject to tax.

You then have some choices depending on your situation - you can put the difference into an RRSP if you have room, etc. so that your income subject to tax is as small as possible.

To answer the question of what you declare, see the above calcualtion. The only flexibility is what portion of your income is "business". Even if you are a true pro player, then winnings from games that are not your "normal" ones may not be taxable. If you get lucky and wina big multitable, then that would likely be taxfree- unless you are in the business of living off of the big tournies.