Awful WSOP news from PokerStars

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LOL @ OP upset because he can't cheat on his taxes now.

FTW your entry is deductable as a gamling loss anyways.

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So you are definitely itemizing your concierge purchases on your '07 return, correct?
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What about any t-shirts or books you've earned through various poker sites?


If I were to estimate the % of players who used the concierge service but didn't report, i'd probably go with 95%.

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You're probably right but they are still cheating on their taxes. The tax system isn't fair but it's still the law.

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You don't pay taxes on FPP purchases, it is not taxable income. If you have a credit card that gives you back 3% cash rebate on all your purchases, you don't pay taxes on that cash payment from the credit card company either. If you get a free airline ticket thru frequent flyer miles, that is not income, and you don't pay taxes on the value of the ticket.

A rebate received from the party to whom the buyer directly or indirectly paid the purchase price for an item is a reduction in the purchase price of the item; it is not an accession to wealth and is not includible in the buyer's gross income. Rev. Rul. 76-96, 1976-1 C.B. 23; Rev. Rul. 84-41, 1984-1 C.B. 130.

Some credit card companies allow you to gift your rebate to a charitable organization. In this case, you would have a charitable contribution that's deductible if you itemize on Schedule A, and you don't have to recognize the income from the rebate.

Of course if you use the credit card for business, your rebate is a recovery of a tax benefit item so that would be considered income. For example, if you had $10,000 in business purchases and the credit card company refunded you 1 percent or $100, the $100 would be considered income of the business or an adjustment to the cost of the purchases.