Pay on withdraws or earnings?

aba20 · #1 12-19-2006, 04:00 PM

I just spoke with a my tax guy ( refered to me by a poker player) and he said that I don't have to pay taxes on my winnings just what I withdraw. So If I won $100 dollars at pokerstars and withdrew $25 to my bank account I would just pay taxes on the $25 and the remaining $75 would remain untaxed until withdrawn. This dindn't seem right to me since your world wide income is taxed but he assured me this is what he does for all the poker clients he has (he has about 5 well known clients). Does anyone know the rule or where I could look this up.

Sniper · #2 12-19-2006, 04:06 PM

You can review the proper treatment of gambling income in the IRS documents yourself... the tax guy you spoke with is giving you BAD advice.

You cannot "defer" income (and taxes due on it) by keeping it on a poker site...

aba20 · #3 12-19-2006, 04:14 PM

Sniper not just bad illegal, correct?

straate · #4 12-19-2006, 05:34 PM

Sniper is right, however your tax guy told you that probably because there is no way your winnings that you keep online (and do not withdrawl) can be tracked, whereas money you withdrawl CAN be tracked.

IWEARGOGGLES · #5 12-19-2006, 05:57 PM

[ QUOTE ]
Sniper not just bad illegal, correct?

[/ QUOTE ]

Yah don't be Wesley Snipes.

NoMeansYes_ · #6 12-19-2006, 08:21 PM

[ QUOTE ]
[ QUOTE ]
Sniper not just bad illegal, correct?

[/ QUOTE ]

Yah don't be Wesley Snipes.

[/ QUOTE ]

he plays poker?

EMc · #7 12-20-2006, 02:51 AM

constructive receipt (or something like that)

Once the money is conditionally and knowingly available to you it is income.

wpr101 · #8 12-21-2006, 10:52 PM

This thread sucks. It just leaves the same question in place as posed.

BvlyHls90210 · #9 12-22-2006, 01:13 AM

I find it remarkable that a player as successful as aba can be so clueless to have not researched this long ago, and a tax guy can be so bad that he would give out this advice. If I worked for the IRS, I would have a massive boner about auditing successful online poker players, as it would be such a landmine for tax fraud. It just really sucks that a tiny minority of poker players are essentially subsidizing the majority who are frankly cheaters. It really is no surprise the government wants to make this all illegal, afterall online poker players as a whole just seem extremely focused on avoiding paying taxes. And unfortunately for Aba, ignorance isn't an excuse, especially if you are making substantial amounts of money and should known about this stuff cold long ago.

Pog0 · #10 12-22-2006, 05:13 AM

[ QUOTE ]
I find it remarkable that a player as successful as aba can be so clueless to have not researched this long ago, and a tax guy can be so bad that he would give out this advice. If I worked for the IRS, I would have a massive boner about auditing successful online poker players, as it would be such a landmine for tax fraud. It just really sucks that a tiny minority of poker players are essentially subsidizing the majority who are frankly cheaters. It really is no surprise the government wants to make this all illegal, afterall online poker players as a whole just seem extremely focused on avoiding paying taxes. And unfortunately for Aba, ignorance isn't an excuse, especially if you are making substantial amounts of money and should known about this stuff cold long ago.

[/ QUOTE ]

I find it remarkable that you replied to this post by insulting most of the people on these forums and you didn't even answer the OP's question.