Re: poker tournaments may be a thing of the past
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With the IRS ruling that properties must hold 25% of poker tournament winnings over $5,000, who will have any money left to play?
I can't wait to see the revolt from all of the players who put up $10,000 plus juice, get in the money, go collect their $16,000 and find the casino only gives them $12,000. As the 25% held back for taxes is on the entire amount won, not the net (as I understand it).
Of course, you can't carry forward loses, so this puts anyone playing tournament poker so far behind the "eight ball", that there is no way to come out ahead.
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Its a withholding, so they just withhold it, for the IRS. If you have a loss at the end of the year, it gets refunded. If you are a net winner, then you pay tax on the net winnings for the year, and any tax withheld is credited against your total tax liability.
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