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#1
08-31-2007, 03:17 PM
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LOL Taxaments (This is terrible...)
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#3
08-31-2007, 05:44 PM
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Re: LOL Taxaments (This is terrible...)
U make a money finish of 12k$ ina 10k$ event. But U have sold 50% of ur action to friends, gambling partners & regulars of the poker-room ur playing in.
-So the tourny cost U 5k$ only. -12k$ less 25% make 9k$. -U owe them 6k$ & have 3k$ left only -U are down 2000$ in the process. How does it work with the IRS in such a situation one year later: IRS- Mr. X U have a money finish of 12k$ but declare only 6k$ Mr. X- I have sold 50% of my action IRS- To who ? Mr. X- To Bill, but I dont know his last name. Actually they all call him Bill, but it might be not he's real 1st name. He's a regular in the 10-20 HENL at the casino XYZ. I have sold the other part to this chinese guy named Chang, or maybe Chung, im not sure neither. So my point is that Mr. X'story could be 100% accurate & he's not triing to lie to IRS, but when U make swap or sell action of a tourny with other peoples, U don't ask them their social security number's & other personal infos. - jpp PS I'm canadian & don't have to pay taxes on poker winning, but i'm curious about how it works.
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#4
08-31-2007, 05:59 PM
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Re: LOL Taxaments (This is terrible...)
there are tax forms available chops to formalize the transaction and make it legal for tax reasons
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#5
08-31-2007, 06:44 PM
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Re: LOL Taxaments (This is terrible...)
[ QUOTE ]
there are tax forms available chops to formalize the transaction and make it legal for tax reasons [/ QUOTE ] Harrahs refused to cooperate this year with these, nor did Mandalay Bay.
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#6
08-31-2007, 06:47 PM
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Re: LOL Taxaments (This is terrible...)
[ QUOTE ]
[ QUOTE ] there are tax forms available chops to formalize the transaction and make it legal for tax reasons [/ QUOTE ] Harrahs refused to cooperate this year with these, nor did Mandalay Bay. [/ QUOTE ] In that case, you need to get a signed, written contract, which is what I (we all) did this year. If it's just a 5% action swap or whatever, you can do it informally for small sums/hold large ones until you get the other guy to put his signature on a one paragraph acknowledgment. You should have been doing this all along, anyway, but this will protect you in case of audit.
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#8
08-31-2007, 03:25 PM
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Re: LOL Taxaments (This is terrible...)
well, as long as that withholding means that it goes towards credits later (ie, you pay only 10% more for filing if you owed 35% total for tax) then it doesn't really change much
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#9
08-31-2007, 04:38 PM
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Re: LOL Taxaments (This is terrible...)
The article is a little misleading.
...snip... Here’s an example of how much money the government will be making off of poker tournaments after March 4, 2008. If the law was in effect earlier this month, the top seven finishers of the $500 event that took place Aug. 7, at the Legends of Poker would have paid a total of $40,221 in taxes. ...snip... The government isn't "making" any more than it otherwise would off the tournament. It's collecting the tax that is due under a different structure. This is no different then withholding tax on any other income. The income has always been reported, tax has always been due. Expenses fall under the same structure that they have in the past. It does effect cash flow for folks that are on the tournament circuit for sure. I'm sure that is taking a little money off the ol' craps table.
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#10
09-01-2007, 12:08 AM
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Re: LOL Taxaments (This is terrible...)
[ QUOTE ]
The article is a little misleading. ...snip... Here’s an example of how much money the government will be making off of poker tournaments after March 4, 2008. If the law was in effect earlier this month, the top seven finishers of the $500 event that took place Aug. 7, at the Legends of Poker would have paid a total of $40,221 in taxes. ...snip... The government isn't "making" any more than it otherwise would off the tournament. It's collecting the tax that is due under a different structure. This is no different then withholding tax on any other income. The income has always been reported, tax has always been due. Expenses fall under the same structure that they have in the past. It does effect cash flow for folks that are on the tournament circuit for sure. I'm sure that is taking a little money off the ol' craps table. [/ QUOTE ] Well, this isn't entirely true, as they'll now make more money off of the float interest, but yeah, basically it doesnt' affect too much other than the fact that you're no longer taking a quarterly interest free loan from the government equivalent to 25 percent of your tournament win every time you cash in a tournament.
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