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#111
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Chigger
"Edit: Another thought: How is this any different than Poker site X sending me a check I haven't cashed yet? Lets say they take 2 weeks to process it and another 3 weeks to snail mail it. Until I know I'm not getting the money this year its taxable. No one has said that we are never getting this money and its gone forever, and even then its a 2007 tax year issue." Excellent point Chigger. This would work if on or about January 1st you requested your 2006 YTD winnings to be mailed to you ASAP and these funds became part of the Neteller problem. But it would have to overcome two tax accounting issues. 1. Do you consistently do this every year and 2. You did not play with these funds between December 31st midnight and the day you requested the check. This is what I do for my gambling clients who have online activities. First I establish a business "tax year", for online activities, of Dec 22nd to Dec 21st. For example, December 22, 2005 to December 21, 2006 is the tax period used for the tax year 2006. This allows YTD winnings to be sent and cashed on or about December 31, 2006, thus staying staying within the cash basis rules. My client's investment or basis is always the same each year (or at least we try to do this). Now if my client wants to leave YTD winnings in, fine, but a check has to be requested on Dec 22st. This is to maintain a consistent patten for the using this tax year and for establishing a proper cutoff. What this does is postpones taxes on the winnings from Dec 22nd to the 31st each year, this is what accountants refer to as a "permenant difference". This has been audited and accepted by the one IRS auditor. My argument is that my client rarely plays during the holidays, it conforms to the cash basis rules and its applied on a consistent basis. |
#112
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Just a quick question. If I am understanding this correctly, you are probably both in agreement that if the Neteller funds are lost indefinitely it goes down as a gambling loss for this year, correct?
So say you had 100k lost, you owe around 30k, of which you have no money to pay.... |
#113
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Russ the entension is not my idea. My thoughts were generally about covering my ass, not my clients, because during an audit you're fighting for yourself, not the client. Hopefully the client benefits.
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#114
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Bossplayer please ask the question agin using the years 2006 and 2007 as a reference. "this year" means 2006 or 2007?
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#115
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Does the loss go down in 2007? That is what I am guessing. It is a profit in 2006.
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#116
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Yes but send a PM about your situation And BTW do you use the neteller ATM card to withdraw cash?
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#117
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[ QUOTE ]
[ QUOTE ] ding-dong yowned. [/ QUOTE ] if only I could just get drunk and ban people for no reason, then I could really get out line. [/ QUOTE ] luckily i don't do either |
#118
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[ QUOTE ]
if the Neteller funds are lost indefinitely it goes down as a gambling loss for this year, correct? [/ QUOTE ] For most (not Self Employed) filers, I have yet to see a convincing argument for why money not retrieved from Neteller would be included as a Gambling Loss in 2007... it is more likely a Theft Loss. That said, hopefully, funds will be returned prior to the end of 2007. |
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