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#1
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Is rakeback income?
Cant find any answers for this, and I dont know where else to post it. I am almost done filing my taxes except I cant finish my poker earnings part. Some say yes, others say no.
My take is no, it is money that was paid that you receive back as a rebate. But to be honest, I have no idea. Thanks for any and all help. |
#2
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Re: Is rakeback income?
Rakeback is Income!
You have already reduced your Income by the amount of the Rake, thus any Rakeback has to be added back into Income. |
#3
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Re: Is rakeback income?
Can you back this up with anything, or is this from personal knowledge of filing in the past?
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#4
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Re: Is rakeback income?
You should check with a tax professional, but I do not believe there are any competent CPAs knowledgable in this area that would tell you otherwise...
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#5
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Re: Is rakeback income?
A rebate or discounted price is not income. When you buy something on sale, you don't pay tax. When you get a rebate from the auto dealership, you don't pay tax. Seems pretty straight forward to me.
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#6
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Re: Is rakeback income?
[ QUOTE ]
A rebate or discounted price is not income. When you buy something on sale, you don't pay tax. When you get a rebate from the auto dealership, you don't pay tax. Seems pretty straight forward to me. [/ QUOTE ] Gambling is not a purchase, and Sales Tax is not Income Tax... You do not account for Rake as an expense. A rebate on purchase is not income because it is an expense reduction, so your reasoning does not apply. |
#7
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Re: Is rakeback income?
Rakeback definately = income. I'd be curious how it is tied to sessions though for tax purposes.
Is a $15 loss (paying $100 rake) really a small gain due to RB? |
#8
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Re: Is rakeback income?
Sniper - isnt there a thread for this from some guy "ads" or something? Rake isn't a "fee" in the traditional sense - its usually a percentage of the pot - you either have gambling winnings/losses - the rake is absorbed in this. Your "winnings" show up AFTER rake - so if you add back its income - right?
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#9
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Re: Is rakeback income?
[ QUOTE ]
Rakeback definately = income. I'd be curious how it is tied to sessions though for tax purposes. Is a $15 loss (paying $100 rake) really a small gain due to RB? [/ QUOTE ] I treat it that way (and think it is the correct way to do it). I keep track daily and estimate my RB daily and add it in. It certainly helps in reducing your swings. |
#10
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Re: Is rakeback income?
WPX is the clearest example of why RB is income..
Rake is a deduction from your income..Rake is netted into the money won.. If RB was not income I would want WPX to take much more money out of my pot and then give it back later..Thus my winning would be that much less or even negative...In an extreme example I could lose 20K on WPX get it all back in RB then NET a WPX 20K loss against my Stars and FTP profits.. If RB was not income it would be the same as a resteraunt getting a refund from there meat supplier at the end of the month but still being able to expense the full amount of the meat expense and make no adjustment for the "refund" recieved at the end of the month... I hope the WPX example makes it clear why RB is taxable as income and there really is no debate.. UGLYOWL has has an interesting question...I have always treated my RB as seperate item the netted with winnings to come up with total income from poker(I file sch C so I do not need to net winning and losing sessions)... |
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