LOL Taxaments (This is terrible...)

[Todd Terry]

According to the article at least, this new rule affects only withholding, and not the tax ultimately owed. It will probably have some negative effect on bankrolls during the year, since assuming an ROI of 100%, 25% of the gross = 50% of the net, which is higher than anyone's ultimate tax rate. As a result, we'll all be providing interest free loans to Uncle Sam during the year. It may have a beneficial effect on those who would immediately lose all of their winnings in the pits, however.

[Abbaddabba]

That could single handedly soften up the entire tournament circuit. Meanwhile, us canadians can hop in and recoup the taxes that are withheld later on the down the road.

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I have a question. If you win 1 million in a tourney, have 250k taken out, then go on to lose like 300 or 400k in tourney buyins the rest of the year, do you get refunded some of that money back?


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Pretty sure the tax laws dont accomodate gambling winnings to the extent that they do 'legitimate' businesses.

It would be cool if we could merge/acquire broke high stakes donaters for token amounts in order to count their losses against our wins when declaring taxes.

[ravenfan1733]

[ QUOTE ]
I have a question. If you win 1 million in a tourney, have 250k taken out, then go on to lose like 300 or 400k in tourney buyins the rest of the year, do you get refunded some of that money back?

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The way I understand this, casinos will report your winnings on a W2-G, like they always have; the difference is that they will be withholding 25% "up front" from your winnings. You are able to deduct gaming losses to the extent of your gaming wins so in your example above, you would get the entire $250K back.

[Quanah Parker]

So, are we going to see more satellite type structures where the top X players get flat payouts just under 5K?

That is unless I'm reading the law wrong. It's based on the payout, not the prize pool, correct?

[Franchise 60]

[ QUOTE ]
[ QUOTE ]
I have a question. If you win 1 million in a tourney, have 250k taken out, then go on to lose like 300 or 400k in tourney buyins the rest of the year, do you get refunded some of that money back?

[/ QUOTE ]

The way I understand this, casinos will report your winnings on a W2-G, like they always have; the difference is that they will be withholding 25% "up front" from your winnings. You are able to deduct gaming losses to the extent of your gaming wins so in your example above, you would get the entire $250K back.

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K thats what I figured, thanks.

[T-God]

[ QUOTE ]
Starting March 4, 2008, casinos and cardrooms are supposed to start withholding 25 percent of any poker tournament winnings of $5,000 or more. This will particularly affect the poker hobbyists who go deep in tournaments with buy-ins that range from $100 to $550, and of course those who make their living humping the tournament poker trail.

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...Brandi?

[xker17x]

roflmao

[1p0kerboy]

lol donkaments?

[philfan05]

I think I remember hearing MM say that Bellagio pays its tournament winnings in poker chips and therefore you are not taxed on it. Can anyone confirm this and could local casinos do this too?

[technologic]

[ QUOTE ]
I think I remember hearing MM say that Bellagio pays its tournament winnings in poker chips and therefore you are not taxed on it. Can anyone confirm this and could local casinos do this too?

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lol