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#81
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Its a graduated rate starting at about 16 to 45 % depending on total taxable income and deductions.
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#82
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They would take your word for it. You could have your wife demonstrate her poker skill and, assuming you seem more knowledgeable, you would be ok. Don't forget bonuses can be treated differently than poker earnings (just like tournament winnings can be nontaxable even if your cash game earnings are). I would think that all bonuses are technically taxable - you go after thme essentially because you think you will at worse break even on play so that you earn the bonus. That said, most bonuses aren't significant enough to be worth claiming. [/ QUOTE ] This seems reasonable. Having given it some more thought, I would also have ample records showing playing time while my wife was at work. As to your remarks on bonuses...I'm assuming that if one is earning 5 figures in bonuses, that would change your opinion on claiming? |
#83
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Once bonuses become significant, you should be more inclined to declare them.
If you were lookad at, they would likely start at your total withdrawals so it really doesn't matter if it comes from playing, rakeback or bonuses. |
#84
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I used to think there was no way they would change how online poker was handled. Now I think it is something like 10% they legalize/regulate it, 40% they keep things the way they are and 50% they total ban it. [/ QUOTE ] Wow. CFE, you're usually pretty well-informed about these things...you really give our current gov a 50/50 shot of going the same route as the US (or worse)? |
#85
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I think there are 3 camps.
The smallest group (mostly the bureaucrats and low level politicians) wants it regulated so tax can be collected, etc. The second group, made up of most of the middle tier politicians, want no changes. The third group, made up of the higher level decision makers want it banned and action taken like the US. It all depends on how the middle guys go, whether they cave to political pressure or listen to the public. I don't think anything is immenient, but 6 months from now it wouldn't surprise me if something was done. It's not a must-do item on anyones's agenda but may come up. |
#86
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Hi TorontoCFE,
My poker profits from last year were in the 7 figure range, about half online, and half from live tourneys. I just got an opinion from a 2nd tax lawyer here in Ottawa, and they have both said after reviewing all of my facts, and making many comparisons to past cases, that I should not be taxed. Also, since I have their written opinions, I can never be charged with negligence. But you seem to be an expert in the field. Say they did try to tax me in the future, would they come back through all of the years? (2006 was my first big year as a pro). What do you suggest I do? This has been bugging me for a few months now. |
#87
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[ QUOTE ]
Hi TorontoCFE, My poker profits from last year were in the 7 figure range, about half online, and half from live tourneys. I just got an opinion from a 2nd tax lawyer here in Ottawa, and they have both said after reviewing all of my facts, and making many comparisons to past cases, that I should not be taxed. Also, since I have their written opinions, I can never be charged with negligence. But you seem to be an expert in the field. Say they did try to tax me in the future, would they come back through all of the years? (2006 was my first big year as a pro). What do you suggest I do? This has been bugging me for a few months now. [/ QUOTE ] Hey myst, Would you mind telling us the reasoning as to why these two tax professionals don't think that you need to pay taxes on your poker winnings? Are all of your winnings from tournamanets or are some of them from cash games too? I would be interested in hearing the logic they used to determine that your winnings are tax exempt even though you're playing poker as a professional and obviously winning huge. |
#88
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If say I made 50k a year playing online, and say I had to pay about 10k in taxes, how much can I write off ? Say if I had 4k in writeoffs, would that come directly off the 10k so now I would only owe 6k ? Or would it somehow come off the 50k and now I may owe something like 8-9k in taxes ? If I go to the dentist is that also a writeoff as well ? Thx, also is there anyone in the Vancouver region who could suggest a good accountant who specializes in this area ? I took a quick browse through the yellow pages but saw nothing in their that said they specialize in this area.
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#89
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1 other thing as well. Say I made 50k playing online, then claim I make another 2k playing live and maybe playing a few days a week. Can I write a complete vehicle off with gas/insurance ? Or can I only write off up to that 2k of live play ? I'm so confused because every other accountant I have spoke to says I don't have to pay. Is there a way to get that in writing from them so that if I don't pay and get audited that I can always fall back on that so I don't get charged with income tax evasion ?
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#90
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[ QUOTE ]
If say I made 50k a year playing online, and say I had to pay about 10k in taxes, how much can I write off ? Say if I had 4k in writeoffs, would that come directly off the 10k so now I would only owe 6k ? Or would it somehow come off the 50k and now I may owe something like 8-9k in taxes ? If I go to the dentist is that also a writeoff as well ? Thx, also is there anyone in the Vancouver region who could suggest a good accountant who specializes in this area ? I took a quick browse through the yellow pages but saw nothing in their that said they specialize in this area. [/ QUOTE ] I am absolutley NOT an authority on these matters in any way, but I think your questions can be answered quite simply. When you are writing off expenses, they come off your income, NOT your taxes. The idea being that you pay taxes on your actual profit. IE if you brought in $50,000 and had expenses of $10,000, you pay taxes on your $40,000 profit. You can't calculate the taxes on your revenue and then deduct your expenses from your taxes. There are a few tax credits that work that way I believe, but that doesn't apply here. As far as what you can write off, expenses would have to be related to your revenues. For example, I would think you could write off things like poker books and software. If your computer is used exclusively for poker, I think you could write off computer expenses...more likely you use it for other things as well, in which case I think you can write off the portion you use for poker. IE if it is used 50% for poker, you can write off 50% of the expenses. Again, I'm NOT an expert on these matters. I'm fairly sure I have the basic facts correct, if not the exact details. Hopefully someone with more expertise can chime in. |
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