Re: Ship the Cayman!
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I assume u have to pay income taxes on the cash value of the car.
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I was wondering about this too.
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Most definitely has to report the $60k stars gave him as income.
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Not true, its in consideration of the millions of dollars of rake hes paid... thought I'm not 100% sure, but its definately not a traditional free prize.
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The sixty grand is most definitely reportable income in the US. Also, if someone just gives you 60K as a gift, you have to report that, too. (IANAL nor a CPA, but I believe the cap on untaxed gifts is 10K in the US.)
At any rate, I'm sure OP has an accountant who handles his taxes, so there is no need to speculate or take tax advice from BBV. (I am guessing people taking tax advice from BBV would result in some great BBV threads though.)
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Yes I know you have to report gifts as income, but my point is this is not a gift, and is in exchange for mass amounts of rake. Thus therefore it is not something for nothing and could be viewed as a contract in quantum meruit, as in a contract by principal. I have my tax exam tuesday... lets hope thats right.
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no
Look, the rake is already figured into his net income from the STT's, this is above and beyond that. It's not like he is writing a check for rake to the site, and even if he was it would be deducted on his taxes and if they gave him a kick back that would be taken off the deduction, so the net effect is always the same.
Also, congrats to op. I would feel jealous but I played STT's for a while and I can never be jealous of that.
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Sorry to bump this [censored], but you're wrong. I don't know if your a tax guy or whatever, but your analysis is seriously off if you think it is wholly one way or another. He IS writing a basically a check to the site for rake, and he PROBABLY ISNT deducting the rake as a necessary and ordinary business expense. If he was, then yes the car would be income, as if he is writing off the rake, than the car is for free. In your analysis, the rake completely dissapears as part of your income which makes no sense, if its not being deducted anyway.
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Dude, has net earnings on s&g's with rake already figured in. He got a 60k car on top of the net earnings. End of story, not even close. I was pointing out that no matter how you set up your chart of accounts, that 60k is income, period. If you want to record a 215 as a 200 tourney with an additional entry as 15 for rake, fine, but it makes no difference.
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