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#11
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He can't file as a professional gambler when it's clear that the major source of his income is from a job. Hobby income is treated very unfavorably under U.S. tax law. Many hobbyists who show even a tiny profit (think artist or flea market bead stringer) can do better filing a C or C-EZ for the business income instead of reporting it as miscellaneous hobby income. However, for some reason, if the hobby is gambling, you are not allowed to file as a business. The majority of your earned income needs to be from the gambling. I don't think it's fair either, but the answer won't change, so I don't know if I'd advise him to hire a tax attorney just to contest this, since the answer is not going to change.
[ QUOTE ] Filing as a professional would probably be cheaper (Regular taxes + 15% self-employment). Why not do this? [/ QUOTE ] |
#12
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what do you consider a "session", one day?
EDIT: If i have a full time job, what % of my salary would I have to make in order to be able to file as a pro? Double Edit: Basically I don't make that much at my job and make more playing poker. My concern is that my office wants to know if I have a 2nd job and I have to file if I have one. Anyone have any experience with this? I feel like saying, "yes I have a 2nd job and it is pro gambler" will look really bad. |
#13
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Yup, that sucks but it sounds about right. If you're single your standard deduction is $5,150. I'm not sure of your marginal tax bracket, but we'll say 25%. Based on your poker situation, you effectively increase your income by $2,600 but lost your ability to claim the standard deduction. Thus you're getting screwed on your first $5,150 of deductions. You'll lose something like 0.25 * $5,150 = $1,288 plus you have to pay taxes of 25% on the $2,600 profit for an increase of about ~$1,900. Sorry dude.
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#14
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What if OP didn't claim the losses and just took the std. deduction of $5150? Would he have been worse off?
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#15
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Don't you buy Girl Scout Cookies, go to church, visit Goodwill, pay for internet services, have a computer, dinners with other poker players, postage and bank fees, go to the dentist, have medical insurance, girlfriend problems, buy books and tapes, computer items, chairs, use coffee, eat doughnuts, credit card interest and fees, buy Playboy for research
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#16
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[ QUOTE ]
Don't you buy Girl Scout Cookies, go to church, visit Goodwill, pay for internet services, have a computer, dinners with other poker players, postage and bank fees, go to the dentist, have medical insurance, girlfriend problems, buy books and tapes, computer items, chairs, use coffee, eat doughnuts, credit card interest and fees, buy Playboy for research [/ QUOTE ] UM? surely YOU ARE NOT SUGGESTING THAT HE USE PERSONAL EXPENSES AS BUSINESS DEDUCTIONS CAUSE YOU GO TO FPMITA FOR THAT WHICH IS WHY NOBODY DOES IT!!!!!!!!!!!!!!!!!!! |
#17
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[ QUOTE ]
What if OP didn't claim the losses and just took the std. deduction of $5150? Would he have been worse off? [/ QUOTE ] [ QUOTE ] Online Sessions Losses: $17040 [/ QUOTE ] 17040 > 5150, so no. |
#18
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So, it cost you $1600 in taxes--from $600 refund to owing $1000-- on $2600 profit. Wow, you need to get a tax expert or change tax experts. That's just plain wrong. [/ QUOTE ] The tax guy just does the calculations....it's not his fault what the numbers come out to. |
#19
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"The tax guy just does the calculations....it's not his fault what the numbers come out to."
WOW no more lawsuits. Goodbye AMT problems. |
#20
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PM Master, I have a 1,000 bucks for you.
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