Re: FPP porsche- taxable?
 

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do ppl pay income tax on health insurance paid for by their employer?

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This is a bizarre exception to a fairly straightforward rule.

Re: FPP porsche- taxable?
 

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D$D,

So the argument would be that FFP redemptions are the same as someone getting a comped room or a free dinner at a B&M casino. Hmmmmm.......very interesting indeed.........

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practical reasoning and the decision of an IRS audit do not always go hand in hand

as much as this logic makes sense i don't think this is going to fly, you weren't given a porche, you ordered one

Re: FPP porsche- taxable?
 

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D$D,

So the argument would be that FFP redemptions are the same as someone getting a comped room or a free dinner at a B&M casino. Hmmmmm.......very interesting indeed.........

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practical reasoning and the decision of an IRS audit do not always go hand in hand

as much as this logic makes sense i don't think this is going to fly, you weren't given a porche, you ordered one

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you also order your food or free drink at a casino from a variety of options

I'm really interested in a legal opinion on this issue

Re: FPP porsche- taxable?
 

I don't know the answer. I just wish PokerStars would clarify it for us.

Re: FPP porsche- taxable?
 

The credit card argument is comparing apples and oranges. In order to have a valid argument, you need to have an expense that was deductible for tax purposes that is not taxable when you receive a refund of that expense. Your personal credit card that gives cash back or some other point system is not taxable because the expenses on the card were never deducted.

Libutti v Commissioner holds that automobiles that were comped are income as gains from wagering transactions. The idea that the car is a comp is usually the other argument against treating the car as income.

The exclusion of the car as income needs an argument that is better than either of these two scenarios. The gift argument is even worse since the car is chosen by the player with the condition of playing. When cars are given to people with no play or expectation of play, then the gift argument could be revisited.

Re: FPP porsche- taxable?
 

I found an article put out by the IRS that frequent flyer miles are not taxable. Stars FFP program seems analogous.

Linky

Re: FPP porsche- taxable?
 

The article does not say that frequent flyer miles are not taxable. The paragraph merely says that the IRS will not assert that a taxpayer has understated their personal taxes for the personal use of miles related to a business.

In an example for taxability, private letter ruling 9746048 required mutual fund buyers to reduce the basis of their shares by the FMV of the frequent flyer miles received.

Re: FPP porsche- taxable?
 

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So the argument would be that FFP redemptions are the same as someone getting a comped room or a free dinner at a B&M casino. Hmmmmm.......very interesting indeed.........


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Pretty sure these are also taxable in the USA.

Jimbo

Re: FPP porsche- taxable?
 

Minimally, if you try to register the car in the US, a state is going to ask for a license tax registration and sales tax. They will most likely not issue plates until you pay the sales tax, and will charge you based on current Kelly Blue Book value. I believe Pokerstars has a disclaimer on their website that says they are not responsible for tax and license fees. Oh yes, I would not drive a Porsche without current tags.

Re: FPP porsche- taxable?
 

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Minimally, if you try to register the car in the US, a state is going to ask for a license tax registration and sales tax. They will most likely not issue plates until you pay the sales tax, and will charge you based on current Kelly Blue Book value. I believe Pokerstars has a disclaimer on their website that says they are not responsible for tax and license fees. Oh yes, I would not drive a Porsche without current tags.

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I think the question is not fees associated with the car itself but the 80k or so paid for the car as taxable income.