Canadian Online Poker Tax Thread

[Mr. Sask]

Bump

[vin17]

Sorry for digging this up guys, but I have a question...If I'm in University and online poker is my sole source of income should I go ahead and declare it? I have a feeling I will anyways. How do I go about declaring it to the CRA.

Thanks.

[chapstick]

Vin17,

As far as I understand, the only way to claim it is as self-employed income (that requires a T2124 form). I may be completely wrong about this, though. It takes some work though, and you have to worry about GST (seriously).

You can always just not claim it, since gambling winnings can be considered tax-free under most circumstances.

If you want to claim it, there are lots of things you can write-off (rent, internet, computer, etc.)

I can maybe provide more information. Contact me by PM.
If you are in the Toronto area, I may be able to get you in touch with an accountant (who is also plays some micro-stakes poker) who can provide you more info. She is trying to understand the issue better herself, so she is willing to give out free info. No worries, I ain't shilling, she'd only want remuneration if you need her to do your taxes for you.

[junkanoo]

Has anyone investigated the CCPC option (creating a corporation) commented on by TorontoCFE? What are you guys doing these days about claiming?

I'm considering quitting my job and going pro in which case I'd claim wins and deductions.

[pokerkai]

Ive had this case bookmarked for a while.

http://decision.tcc-cci.gc.ca/cgi-bin/si...g&langue=en

Its a 2002 case about a Ontario businessman whos business was audited. He was audited because although his business claimed a loss for certain years, his assets grew in those same years because of his poker winnings. Thus Revenue Canada tried to come after his poker winnings.

[PatInTheHat]

Question:
How do I declare poker income that is still in US funds?

[teddyFBI]

[ QUOTE ]
Question:
How do I declare poker income that is still in US funds?

[/ QUOTE ]
uh....convert it?

[posh]

I don't want to crash the whole positive vibe of the thread, but what are the ways to not have any paper trail?

If I make 300k this year is it possible for me to just declare lets say 60k and get the rest cash through neteller card?

Thanks for any help and if its already in the thread scream at me, I skimmed through it at work.

~p

[PatInTheHat]

[ QUOTE ]
[ QUOTE ]
Question:
How do I declare poker income that is still in US funds?

[/ QUOTE ]
uh....convert it?

[/ QUOTE ]

The rate is constantly changing though.... Just randomly pick a day and convert it? So lets say I file my return today and convert it at a rate of 1.18. Now when I actually cash it out the rate is 1.10 or something, I loose out no?

I'm curious because I wonder if you could get away with treating money on a site like an investment that you have not yet cashed.

[TorontoCFE]

You use the Bank of Canada average rate for 2006 that is found on their website or the CRA site.