Awful WSOP news from PokerStars - Page 11

LearnedfromTV · #**101** 05-04-2007, 05:02 PM

hmm. very interesting matt.

I had planned to use my fpps to buy lammers via concierge so that I could have the freedom to play whatever events I wanted. Initially (two months ago) they said they could do that. I just emailed to find out what the deal will be. I'd definitely be good with the program they're using for the tv events, but I want to play some not on the list/don't want to play some on the list.

I wonder why they don't do this same thing for the main event winners; credit the last $1500 or $2000 after you play.

MattSuspect · #**102** 05-04-2007, 05:14 PM

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hmm. very interesting matt.

I had planned to use my fpps to buy lammers via concierge so that I could have the freedom to play whatever events I wanted. Initially (two months ago) they said they could do that. I just emailed to find out what the deal will be. I'd definitely be good with the program they're using for the tv events, but I want to play some not on the list/don't want to play some on the list.

I wonder why they don't do this same thing for the main event winners; credit the last $1500 or $2000 after you play.

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Yeah can't say I'm upset about this. As long as a certain huge bank wire go's through I should be fine. [img]/images/graemlins/blush.gif[/img]

LearnedfromTV · #**103** 05-04-2007, 05:19 PM

that's right, congrats!

I don't think I posted in the sweat thread but I was watching.

twobitplayer · #**104** 05-04-2007, 05:21 PM

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LOL @ OP upset because he can't cheat on his taxes now.

FTW your entry is deductable as a gamling loss anyways.

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So you are definitely itemizing your concierge purchases on your '07 return, correct?
link

What about any t-shirts or books you've earned through various poker sites?

If I were to estimate the % of players who used the concierge service but didn't report, i'd probably go with 95%.

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You're probably right but they are still cheating on their taxes. The tax system isn't fair but it's still the law.

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And under it these are not taxable unless you are deducting your rake.

twobitplayer · #**105** 05-04-2007, 05:24 PM

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Do you pay taxes on your online poker store purchases???

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You are supposed to, yes.

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Why refunds and rebates are not taxable. The points and store purchases are a basically a rebate of the rake, and seem like the should be tax free just like my cash back on my credit card which I can also redeem in a 'store' they offer.

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Cash back on your credit card is considered income and should be included on your taxes.

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nope, its not. It is considered a refund of fees.

cardcounter0 · #**106** 05-04-2007, 05:35 PM

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Do you pay taxes on your online poker store purchases???

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You are supposed to, yes.

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Why refunds and rebates are not taxable. The points and store purchases are a basically a rebate of the rake, and seem like the should be tax free just like my cash back on my credit card which I can also redeem in a 'store' they offer.

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Cash back on your credit card is considered income and should be included on your taxes.

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nope, its not. It is considered a refund of fees.

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nope, its not. It is considered an adjustment in purchase price.

JuntMonkey · #**107** 05-04-2007, 05:52 PM

lol @ "tax system is the law and it's therefore your duty to pay"

Niediam · #**108** 05-04-2007, 05:52 PM

2+2 link discussing tax liability of value items given by poker rooms

twobitplayer · #**109** 05-04-2007, 06:37 PM

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You're probably right but they are still cheating on their taxes. The tax system isn't fair but it's still the law.

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You don't pay taxes on FPP purchases, it is not taxable income. If you have a credit card that gives you back 3% cash rebate on all your purchases, you don't pay taxes on that cash payment from the credit card company either. If you get a free airline ticket thru frequent flyer miles, that is not income, and you don't pay taxes on the value of the ticket.

A rebate received from the party to whom the buyer directly or indirectly paid the purchase price for an item is a reduction in the purchase price of the item; it is not an accession to wealth and is not includible in the buyer's gross income. Rev. Rul. 76-96, 1976-1 C.B. 23; Rev. Rul. 84-41, 1984-1 C.B. 130.

Some credit card companies allow you to gift your rebate to a charitable organization. In this case, you would have a charitable contribution that's deductible if you itemize on Schedule A, and you don't have to recognize the income from the rebate.

Of course if you use the credit card for business, your rebate is a recovery of a tax benefit item so that would be considered income. For example, if you had $10,000 in business purchases and the credit card company refunded you 1 percent or $100, the $100 would be considered income of the business or an adjustment to the cost of the purchases.

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This position is aggressive but defensable. It is far from a slam dunk. The service went after frequent flier miles for years before giving up. If you face an audit, I think I would expect an adverse ruling and a trip to tax court. It would probably be cheaper to pay the assessment than to pay a tax lawyer to fight it.

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Actually the air line mile case had a slight wrinkle. What was being contested was business travelers. In this case they did not pay for the ticket but got the points. The IRS wanted to tax this as additional income. Since it was not your money being rebated in some form. They dropped even this though. In the case that you pay for the item and get the rebate/points/rake back it is very clear cut and not in the least aggressive.

But, hey if you guys want to overpay more power to you.

twobitplayer · #**110** 05-04-2007, 06:43 PM

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Cash back on your credit card is considered income and should be included on your taxes.

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nope, its not. It is considered a refund of fees.

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nope, its not. It is considered an adjustment in purchase price.

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Hmm.. the stuff I read ruled it a partial refund of the merchant fees... but adjustment in price seems just as good (actually better as now you don't have to worry about some corner case that has a merchant on a special deal at the time you buy paying less in fees then the cash back) at keeping it non taxable.