LOL Taxaments (This is terrible...)

[coltranedog]

What Mike said was sort of true. If you are paid in tourney chips, your tax burden did not begin until you redeemed the chips for cash.

In years past you could win 1-2 million in chips and lock em away in your box and not pay taxes until those chips are cashed.

[Todd Terry]

[ QUOTE ]
What Mike said was sort of true. If you are paid in tourney chips, your tax burden did not begin until you redeemed the chips for cash.

In years past you could win 1-2 million in chips and lock em away in your box and not pay taxes until those chips are cashed.

[/ QUOTE ]

Although I've heard this said by some of the top known tournament pros, this is absolutely, positively dead wrong. While keeping income in places other than your bank account may help you illegally evade taxes, it does not change your tax liability, which is due whenever the income is earned.

[coltranedog]

Is the income earned when you win the tournament or when you cash the chips?

[sethypooh21]

[ QUOTE ]
Is the income earned when you win the tournament or when you cash the chips?

[/ QUOTE ]

When you win.

Same as it's income when you leave the table up online, not when you cash out.

[Todd Terry]

[ QUOTE ]
Is the income earned when you win the tournament or when you cash the chips?

[/ QUOTE ]

Win the tournament. It's when you have dominion and control over the winnings. If you have the ability to cash the chips, then you have dominion and control.