[SlightlyMad]

I did not pay taxes on my winnings last year (since employment income from a full-time job >> poker income from hobby play), but my financial planner/tax accountant explained what I would have to do if I did.

If you want to treat your poker playing not as a hobby but as an occupation with an expectation of profit, you are taxed on the profit over the course of the year. Think of yourself as a self-employed consultant as far as the tax law goes. To show the net profit you've earned, you must be able to prove expenses. For example, if you paid $100000 in tournament fees, and won $500000, you should only be paying tax on the net profit ($400000), but Revenue Canada may ask you to pay $500000 if you can't prove the tournament expenses (through receipts et cetera). Reasonable travel expenses (if travel is required to attend tournaments) are deductable as well, but don't think you can deduct the cost of food while sitting in your parents' basement, or the rent on your apartment/condo (unless you have a part of the house set up strictly for business with a door et cetera ... assume you will be audited the first year you attempt to deduct that, and don't attempt that without professional advice)

A PokerTracker database, or a series of itemized transactions through Neteller would be of help for the Internet pro. Remember that Revenue Canada will have access to every deposit to your bank, and ask you where the money has come from (if they're interested in auditing you).

Hope that helps and congratulations on your big score from poker this year.