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#52
03-14-2006, 12:19 AM
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Re: My tax story
[ QUOTE ]
Help me out here. How many recreational players who had a decent year at the local casino and won $8k would ever mention it? Why is this different? [/ QUOTE ] If everyone was jumping off a cliff, does that make it right? 
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#53
03-14-2006, 12:28 AM
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Re: My tax story
[ QUOTE ]
[ QUOTE ] Help me out here. How many recreational players who had a decent year at the local casino and won $8k would ever mention it? Why is this different? [/ QUOTE ] If everyone was jumping off a cliff, does that make it right? [/ QUOTE ] With proper safety precautions.
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#54
03-14-2006, 12:31 AM
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Re: My tax story
[ QUOTE ]
Help me out here. How many recreational players who had a decent year at the local casino and won $8k would ever mention it? Why is this different? [/ QUOTE ] Ethical concerns aside, it's just because there is a paper trail online. If the IRS ever audited you, they could find movements of money that are suspicious.
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#55
03-14-2006, 02:02 AM
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Re: My tax story
[ QUOTE ]
[ QUOTE ] Help me out here. How many recreational players who had a decent year at the local casino and won $8k would ever mention it? Why is this different? [/ QUOTE ] If everyone was jumping off a cliff, does that make it right? [/ QUOTE ] I assume this means if you go down to the local casino and win $50, it dilligently gets reported to the IRS right?
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#56
03-14-2006, 02:47 AM
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Re: My tax story
[ QUOTE ]
[ QUOTE ] [ QUOTE ] Help me out here. How many recreational players who had a decent year at the local casino and won $8k would ever mention it? Why is this different? [/ QUOTE ] If everyone was jumping off a cliff, does that make it right? [/ QUOTE ] I assume this means if you go down to the local casino and win $50, it dilligently gets reported to the IRS right? [/ QUOTE ] If there is an electronic paper trail, yes.
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#57
03-14-2006, 03:08 AM
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Re: My tax story
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I don't know where the hell you got those methods, but your poker gains should quite simply be: Balance of all poker accounts as of 12/31/2005 - Balance of all poker accounts as of 01/01/2005 - Applicable expenses [/ QUOTE ] sourbeaver, While that is logical, that is definitely not the way to figure it for the IRS. You can't net losses against wins. You have to take all of the wins as income, then deduct the losses as itemized deductions. [/ QUOTE ] Unless you file as a pro, then this is the way it is done. [/ QUOTE ] Is there some kind of authority for how a "session" is supposed to be defined? Does the IRS have a regulation on this? I think if you net your online wins and losses for the year, you are very unlikely to be challenged by the IRS. Additionally, if they do challenge you, I don't think they can just make up estimates for your session wins and losses. They would probably have to get records from Party which I'm not even sure Party would have at the time of the audit. I've done a little research on this and as near as I can tell the session thing is so that those who receive W-2gs have to report all that as income. So if someone has ten winning sessions at a B&M casino and receives 10 W-2gs, the taxpayer has to report all of those W-2gs as income. The IRS can obviously verify if these are underreported. However, if you net out your online wins and losses over the entire year, the IRS does not have the equivalent of a W-2g to verify your online income and it seems like it would be awfully tough for the IRS to figure out what your online "session" wins and losses were.
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#58
03-14-2006, 07:04 AM
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Re: My tax story
The thing I don't get about presenting a Poker Tracker database for all your play is that it's basically a work of art. Anyone could tailor their 'results' how they wish, and doctor it up. You're telling me the government just accepts whatever you hand over to them as sufficient data?
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#59
03-14-2006, 09:38 AM
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Re: My tax story
[ QUOTE ]
I am curious...why not just leave the $$ in Neteller. Open bank account in Caymans while on holidays/ Or if only 10g then use Neteller debit card to withdraw? You work to hard for that 10g to send 1/2 for gov to squandor. You pay lots tax on your legitimate job to keep paving the highways. [/ QUOTE ] Some of the money, I need for life expenses. So, occasionaly I'll withdraw a grand to checking.
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#60
03-14-2006, 09:40 AM
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Re: My tax story
[ QUOTE ]
[ QUOTE ] I am curious...why not just leave the $$ in Neteller. Open bank account in Caymans while on holidays/ Or if only 10g then use Neteller debit card to withdraw? You work to hard for that 10g to send 1/2 for gov to squandor. You pay lots tax on your legitimate job to keep paving the highways. [/ QUOTE ] A future brain surgeon? I suggest manual labor as a career instead. Risk paying the taxes, interests and penalities on $8000?? You must not be thinking too clearly. Beisdes the poker winnings are considered income as soon as your "session" ends. To the OP, be sure you are taking the recently added option to deduct State sales tax, there is an income based chart if you did not keep records. This can be used as an either/or deduction as compared to any State income tax you may owe. If you live in one of the 8 States with no income tax be sure to utilize the sales tax deduction. Jimbo [/ QUOTE ] I live in Florida, where they don't tax income. Please give me some more information about the sales tax deduction. I don't know about that.
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