[oldbookguy]

Posted in the "Was This To Be Expected" Thread as well with additions highlighted.


<Addition>
This is also in keeping with the online method used by all the ‘skill’ gaming sites.

On those, you deposit and with draw, redeposit and so on. If you hit big and the withdraw reached $600.00 BEFORE you can withdraw more, you must fill out the W2G form and taxes are withheld then on amounts above the $600.00 level.
<End Addition>


I have watched and read posts on this subject for sometime now.

The reality for business is the same for pro poker players.

Small business pays taxes by the quarter. If, when I was running mine I had a great quarter, I paid taxes on it. Later, if the next two were bad, I paid less.
At the year-end, taxes are then refigured on the total year, if I paid too much for that great quarter, I got it back.

Same in poker. Taxes are figured and paid per tournament / quarter.
At the year-end they are recalculated for the ENTIRE year, any over payment is refunded.

As a note, if a business ends up in the negative that is NOT carried over to the next year you start all over again at zero.

The ONLY difference is say I had OTHER income from stocks / bonds / rentals or whatever. IF my business lost money I could apply that loss to my other income.

With Poker / Gambling you cannot. Fair, no; the small business model is used by many to ‘lose’ some money to offset other income.

With that in mind, let me tell you, there are many ways to ‘lose’ money while actually making money.

obg