How will part-time players survive a regulated poker site?

[Lottery Larry]

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Unless "professional gambler" is your stated profession, you cannot deduct your losing sessions from your winning sessions, according to tax law.

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ummm.... wrong, in most places.

(were you trying to say that you can't report the net instead? Or that you can't deduct more losings than you have gained in winning sessions?)

[Lottery Larry]

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Another good reason why I am against regulated online poker. Does anyone think that any government will change its tax laws to fairly tax online poker profits?

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As opposed to how they tax any other gambling profits?

[Lottery Larry]

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Guys, get a grip, you will pay taxes on what you net, I've won lots playing live and online. I have an accountant, and all we do in april is figure out, roughly how much did i net?, ok can i roughly prove it?, fine. Then there is like one line on the tax for where i write , gambling winnings = 100k. End of story. chill out.

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Your accountant sucks, if he's telling you to net out amounts on your federal tax form.

[Lottery Larry]

Good post, SS

[Lottery Larry]

Good luck with that thought.

It seems as if you're trying to make it HARDER for things to work out, as you'd like them to.

Get the online play legitimized first. Deal with the taxes after that is established.

[TheEngineer]

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Tax law would have to be rewritten to make it fair or even worth regulating, otherwise regulation might just kill the industry itself.

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How so? Losses are deductible at the federal level, as was explained. If your state doesn't do this, I guess you'll have to work for change at that level. Besides, these taxes are owed under the current system....the only thing regulation will change is reporting by sites.

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From Barney's bill:
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Licensee...requirements with respect to any Internet bet or wager...all taxes relating to Internet gambling due to Federal and State governments...are collected at the time of any payment of any proceeds of Internet gambling

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After they collect taxes, sites will report; collecting and reporting will change.

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The time of collection (withholding) doesn't affect the amount owed.

No offense, but why do you post here?

[Lottery Larry]

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Do i submit my poker tracker database and show that i have joined about 5000 different online poker tables in 2007 with 3000 winning sessions and 2000 losing sessions, and then do i report that i played 1000 tournaments and lost 200k playing them, but at the same time won 265k playing them, utterly ridiculous guys

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Why? Seems simple enough to me.

First off, most players don't NEED to submit the data, you need to report the gross wins and the gross losses.

Only if audited, or otherwise requested by the IRS or state tax agencies, will non-pros have to provide individual session records.

But, you keep reporting a net gambling win without any gambling losses and see how that works for you. Just don't ever have a losing year....

[Spaded]

I guess we shall see how this plays out, it seems unamerican to pay more in taxes than you actually netted in a year! I think even religious conservatives and friends of the family would be against that [img]/images/graemlins/smile.gif[/img]

[TheEngineer]

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I guess we shall see how this plays out, it seems unamerican to pay more in taxes than you actually netted in a year! I think even religious conservatives and friends of the family would be against that [img]/images/graemlins/smile.gif[/img]

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Not really. They tried to get the gambling loss deduction eliminated a few years ago, calling a massive giveaway to the gambling industry. So, if you made $260,000 and lost $230,000 over many sessions, they think you owe taxes on $260,000 income.

However, that is not the case. You keep writing that losses are not deductible, yet we keep explaining that they are. I'm not sure what point you're trying to make.

[sevencard2003]

i have to report every month to SSI what i win at online poker usually from a negative amount to a win of less than $1000 per month, on average about $200-300 in winnings. and they dont deduct my losses, but thank God they go by what i win or lose in a given month (instead of by the day.) and they also accept my logs at face value btw. id hate it if they said i won $400 and took $400 outta my ssi check, if what happened was i really made $300 at the tables july 24th, and then lost back $125 july 25th lost $100 more back july 26th, lost $200 more july 27th, and then won $100 july 28th, for example.

see in the example above, i would actually be reporting an income of $0 (my $25 loss) and it certainly shouldnt be called $400 income which it aint. truth is i write on my calendar everyday my wins and losses from online poker, thats how i know i made approximately $5000 last year.

im sure u think im foolish to report this anyway because a lot of the time my "WINS" never actually turns into real money (i lose it back before i ever withdraw it from the atm.) and i always use paytru or epassporte and withdraw it that way instead of it touching my bank. my mother when i lived at her house, she disapproved of me gambling online, and when she hooked me up with ssi for my emotional problems, she is the one who told ssi about me gambling online all day every day, and made sure everything got reported. thats why when i won $1200 last Nov in that big tourney on stars, it got reported to ssi and my check was $0 for that month. (one nice thing is it dont decrease my SSI payment for more than that 1 month though.)it is rather complicated and i wouldnt mind hearing from other disabled people on ssi their experiences with ssi laws.