Live tourneys not worth it anymore because of tax and juice?

[THAY3R]

My point was that OP nearly explicitly states that he doesn't pay taxes and is wondering if it's worth playing live tourneys now that he will have to pay taxes.

[Sherman]

Isn't the whole issue here opportunity cost?

I mean, if I have to pay 25% up front rather than later, I have lost out on many investment opportunities with the 25%. During the time I had it and before my taxes were due, I could have invested a great deal of that money. If the govt. takes it up front, I have lost that opportunity. An opportunity cost. No?

Sherman

[BadgerPro]

[ QUOTE ]
Isn't the whole issue here opportunity cost?

I mean, if I have to pay 25% up front rather than later, I have lost out on many investment opportunities with the 25%. During the time I had it and before my taxes were due, I could have invested a great deal of that money. If the govt. takes it up front, I have lost that opportunity. An opportunity cost. No?

Sherman

[/ QUOTE ]

The thing here is that you already get taxes taken out of your big wins by casinos. So this will only have an effect on your smaller winnings. I guess if you're a live tourney pro and have a lot of cashes between 5-10k that wouldn't have normally been taxed right away AND you always take that money and invest it before having to pay it into the government then this will have an impact on you.

[Todd Terry]

[ QUOTE ]
[ QUOTE ]
Isn't the whole issue here opportunity cost?

I mean, if I have to pay 25% up front rather than later, I have lost out on many investment opportunities with the 25%. During the time I had it and before my taxes were due, I could have invested a great deal of that money. If the govt. takes it up front, I have lost that opportunity. An opportunity cost. No?

Sherman

[/ QUOTE ]

The thing here is that you already get taxes taken out of your big wins by casinos. So this will only have an effect on your smaller winnings. I guess if you're a live tourney pro and have a lot of cashes between 5-10k that wouldn't have normally been taxed right away AND you always take that money and invest it before having to pay it into the government then this will have an impact on you.

[/ QUOTE ]

This is wrong - I've never had taxes withheld on a substantial cash (at the WSOP/Rio, Harrah's AC, Taj Mahal, Borgata). There may be casinos in the US that do it, but I'm not aware of any.

[Exitonly]

http://www.pocketfives.com/5B6F3624-...696DB2C48.aspx

[ QUOTE ]

What is a verifiable social?

There is a form called a Form W-9 where you are writing down your name, address and social. You sign the form stating that under penalties of perjury, you have written down the correct social. If you do not put the correct number, this would be fraud.

So, if I sign this form, the casino will not take out the 25%?

According to my source at the IRS, they say that if the casino or tournament sponsor has this form in place, then they do not have to withhold the 25%. If you refuse to sign this form, then they will take out the 25%.

[/ QUOTE ]

[MatteyA28]

[ QUOTE ]
http://www.pocketfives.com/5B6F3624-...696DB2C48.aspx

[ QUOTE ]

What is a verifiable social?

There is a form called a Form W-9 where you are writing down your name, address and social. You sign the form stating that under penalties of perjury, you have written down the correct social. If you do not put the correct number, this would be fraud.

So, if I sign this form, the casino will not take out the 25%?

According to my source at the IRS, they say that if the casino or tournament sponsor has this form in place, then they do not have to withhold the 25%. If you refuse to sign this form, then they will take out the 25%.

[/ QUOTE ]

[/ QUOTE ]

Wow I'm happy to read something from pocket fives!