Canadian Online Poker Tax Thread - Page 8

Bobo Fett · #71 02-10-2007, 01:49 PM

I have a question. I am considering getting my wife involved in bonus whoring. Let's say, oh, maybe I play for her a little bit....you know, when she's busy. [img]/images/graemlins/grin.gif[/img] Is there any way I'm going to be able to declare this on my taxes? It would have to be her Neteller account, although I'm sure we could use a joint bank account to deposit the money into. Unfortunately, I don't see any way to prove to CCRA that I played. Since it would be advantageous to us to have it come under my taxes, I'm concerned CCRA would see this as a tax dodge, even though in this case it wouldn't be...I'd have earned the money. Any ideas?

Dadswell · #72 02-10-2007, 05:10 PM

isn't bonuswhoring playing regular casino games. If so than why is it taxable?

Bobo Fett · #73 02-10-2007, 05:37 PM

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isn't bonuswhoring playing regular casino games. If so than why is it taxable?

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I was actually referring to poker mostly, but casino would come into it.

Actually, that raises an interesting question. I assumed that if you met the threshold for having to pay taxes on your poker winnings, you would also do so for casino winnings. Does the fact that it is truly a -EV game of chance change things? I wouldn't have thought so myself, but it never hurts to check.

cmyr · #74 02-10-2007, 06:21 PM

I would suggest that money you make on a bonus isn't techincally gambling income.

if you're playing -ev games it can be difficult to have 'reaasonable expectation of profit'.

Bobo Fett · #75 02-11-2007, 03:09 AM

[ QUOTE ]
I would suggest that money you make on a bonus isn't techincally gambling income.

if you're playing -ev games it can be difficult to have 'reaasonable expectation of profit'.

[/ QUOTE ]

Perhaps, I'm no expert.

Leaving that aside then, let's assume I'm speaking only in terms of poker bonuses/profits. If a person, for whatever reason, were to have earned money through their own play, but it appeared for all intents and purposes to have been earned by someone else, is there any way for the person who REALLY earned it to claim on their taxes and NOT be entirely screwed in the case of an audit?

Rainbow Warrior · #76 02-11-2007, 03:32 AM

[ QUOTE ]
If a person, for whatever reason, were to have earned money through their own play, but it appeared for all intents and purposes to have been earned by someone else, is there any way for the person who REALLY earned it to claim on their taxes and NOT be entirely screwed in the case of an audit?

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Appearances are only that. The person who "really earned it" is always the one who owes the taxes, no matter how it appears. I can't put my money in someone elses savings account, earn interest and have them claim it if it's MY principal.

And.. regarding bonuses and rakeback, I've always thought of them as being a part of my poker income because, in effect, they are both just a reduction in the rake paid to play poker thereby increasing my poker income.

Bobo Fett · #77 02-11-2007, 03:39 AM

[ QUOTE ]
[ QUOTE ]
If a person, for whatever reason, were to have earned money through their own play, but it appeared for all intents and purposes to have been earned by someone else, is there any way for the person who REALLY earned it to claim on their taxes and NOT be entirely screwed in the case of an audit?

[/ QUOTE ]

Appearances are only that. The person who "really earned it" is always the one who owes the taxes, no matter how it appears. I can't put my money in someone elses savings account, earn interest and have them claim it if it's MY principal.

And.. regarding bonuses and rakeback, I've always thought of them as being a part of my poker income because, in effect, they are both just a reduction in the rake paid to play poker thereby increasing my poker income.

[/ QUOTE ]

Yes, this is exactly what I want. The problem is, the person who REALLY earned it is the one in the lower tax bracket. My concern is that if there were ever an audit it might appear that we are fraudulently filing it under the person in the lower bracket to pay less taxes, when in fact we are actually just doing the right thing. Is there any way to prove who REALLY played?

metallicafan · #78 02-11-2007, 07:01 AM

hey canadians, I wonder something. If I go crazy and want to pay taxes whats the percentage to pay on poker profits?

cmyr · #79 02-11-2007, 01:34 PM

how much income tax you pay depends on how much income you have. Poker is no different then anything else, assuming you fulfill the 'reasonable expectation of profit' rubric. Talk to your CA.

TorontoCFE · #80 02-11-2007, 05:19 PM

They would take your word for it. You could have your wife demonstrate her poker skill and, assuming you seem more knowledgeable, you would be ok.

Don't forget bonuses can be treated differently than poker earnings (just like tournament winnings can be nontaxable even if your cash game earnings are).

I would think that all bonuses are technically taxable - you go after thme essentially because you think you will at worse break even on play so that you earn the bonus. That said, most bonuses aren't significant enough to be worth claiming.