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#1
02-15-2007, 08:07 PM
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Buying a % of a buddy at this year\'s WSOP - some questions
I've never done this, so just wanted to clarify a few things.
I'm considering buying a 1/3 of one of my friends in one of the upcoming $1500 WSOP events this summer. 1. The buy-in published includes the juice for WSOP events, correct? $1500 is the total as I don't see any other fees listed anywhere. 2. If the buy-in was something like $1500+$100, does one usually offer to pay 1/3 of the $100 as well? 3. Say he wins the thing, my cut comes from his profit not including the buy-in, correct? Does this include tip? In other words, say he wins $100k, he subtracts out the buy-in, gives me $500 back and then gives me 1/3 of the rest...before or after tip? 4. I assume it's after tax as well if he chooses to withhold at the time of award. Thanks and my apologies for the newb-like questions! 
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#2
02-15-2007, 09:46 PM
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Re: Buying a % of a buddy at this year\'s WSOP - some questions
[ QUOTE ]
I've never done this, so just wanted to clarify a few things. I'm considering buying a 1/3 of one of my friends in one of the upcoming $1500 WSOP events this summer. 1. The buy-in published includes the juice for WSOP events, correct? $1500 is the total as I don't see any other fees listed anywhere. 2. If the buy-in was something like $1500+$100, does one usually offer to pay 1/3 of the $100 as well? 3. Say he wins the thing, my cut comes from his profit not including the buy-in, correct? Does this include tip? In other words, say he wins $100k, he subtracts out the buy-in, gives me $500 back and then gives me 1/3 of the rest...before or after tip? 4. I assume it's after tax as well if he chooses to withhold at the time of award. Thanks and my apologies for the newb-like questions! [/ QUOTE ] I am doing something similar this year for the $2,500 event. Here is my take. 1. Yes. 2. The $100 fee would be part of the entry fee, so your percentage on a straight dollar for dollar basis is 500/1600, or 31.25%. Alternatively, you could buy 1/3 of his action for 1/3 of the buy-in, or $533. 3. Split is after tip. If you and your buddy have different views on appropriate tip %, then make sure you agree up-front on how much he should tip. 4. You can get forms from Harrah's that allow you to split the tax burden. I think you need to be physically present, however.
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#3
02-15-2007, 10:39 PM
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Re: Buying a % of a buddy at this year\'s WSOP - some questions
1. Yes
2. I it was $1500 + 100 than you would treat the event as a $1600 buyin and go form there. 3. Split is on whatever he cashes for. If he cashes for $1000 he owes you $333. If he cashes for $2000. He owes you $666 not 1/3 of ($2000-buyin) and he gives you the amount before tip. 4. I don't think he gives you the amount after taxes. He just gives you a 1/3 of gives earnings and you deal with the taxes separately. I could be wrong but this is how I'd deal with it.
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#5
02-16-2007, 12:02 AM
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Re: Buying a % of a buddy at this year\'s WSOP - some questions
He can't give you post-tax $ because it becomes a nightmare for both of you tax-wise if he does (he pays way more than he should/may well be unable to give you that much money because gifts over a certain amount (11-12K) are also taxable.)
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#6
02-16-2007, 08:48 PM
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Re: Buying a % of a buddy at this year\'s WSOP - some questions
[ QUOTE ]
Sooo, 2 completely different answers on 2, 3, and maybe 4. Anybody want to break the tie? [img]/images/graemlins/grin.gif[/img] [/ QUOTE ] For the record, Eagles and I agree on #2, and disagree on #3. I think we are just looking at #4 in different ways. Using the forms to split tax liability is the easiest way, IMHO.
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