Canadian Tax Question, unusual
Hi guys,
This is a question about Canadian taxes in regards to poker - not the usual 'do i qualify' post, but a different one.
Say that I start with a 10k online bankroll. At the start of the first month of the fiscal year (whatever it may be), I lose $500. Month 2 the same, another $500 loss, same for all the months except for the final month. At the final month I've lost $500 * 11 previous months for a total loss of $5500 so far, leaving my BR down to $4500 (I don't deposit). However on that final month I make a monthly profit of $10.5k, bringing my bankroll up to $15k at the end of the fiscal year.
Filing my taxes my poker playing is considered taxable and so on, but what amount do I pay taxes on? Do I pay taxes on my NET WINNINGS OVER THE ENTIRE FISCAL YEAR, which would be 5k (I went from 10k in the first month to a final BR total of $15k at the end of the year), or do I have to pay taxes by the month, so I don't pay taxes on my losses in the first 11 months (or do I?), but I have to pay taxes on my $10.5k final month profit?
Basically the question is: Are my taxable poker winnings determined as the sum profit over the entire year, or over each month, each week, or each session? If it's over anything but the entire year, then swings will kill me. Ie I lose $5000, then gain $5000 the next month. But the $5000 in my positive swing is taxed down to $2500, so I in fact lose over the sum of those two sessions, instead of breaking even?
People who have actually paid taxes on their poker winnings in Canada, hopefully with the help of clarification of a tax attorney, are preferred as responders, so I know that your response is actually valid and not just 'my opinion' or 'I think this is how it is, but I'm not sure'.
Additional notes: I'm 20, live in Ontario, Canada. Assume I am considered taxable for poker winnings.
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