Awful WSOP news from PokerStars

[davebreal]

summary: now we will have to pay full taxes on our WSOP entries, as we are essentially "buying" an entry via PokerStars. Also, our hotels will be entirely up to us.

[ QUOTE ]
I understand there is nothing PokerStars can do about this situation,
however now we the players are getting a much worse value for our
FPPs. Is this conversion fair to us?

Now we are also all going to get taxed directly on the $10,000
entrance fee, which will be coming directly out of our pockets. Since
gambling income in the US is taxed at approximately 40%, we will now
actually be paying $14,000 individually to play a $10,000 event?

Have the mathematics of this situation been fully reviewed by
PokerStars Management?
_____________________________
original email from PS
____________________________



On 5/3/07, WSOP at PokerStars <wsop@pokerstars.com> wrote:
> Dear PokerStars Supernova Player davebreal,
>
> First and foremost, congratulations on winning a seat to the 2007 World Series of Poker* on PokerStars! Simply winning your buy-in is a tremendous accomplishment. This e-mail contains very important information regarding World Series buy-in procedures. Please read this e-mail carefully.
>
> PokerStars staff members have worked tirelessly for several months in an attempt to directly buy-in PokerStars' World Series qualifiers to the Main Event. Unfortunately, Harrah's policy refuses third-party registrations. With that in mind, by tomorrow morning we will deposit your $10,000 buy-in into your PokerStars account.
>
> When you wish to cash out the $10,000 please email wsoppayments@pokerstars.com. We have set up this email specifically to expedite the cash out requests for all World Series qualifiers.
>
> With regards to the buy-in here are your options:
>
> 1. Pre-register for the WSOP* Main Event
>
> - Go to http://www.worldseriesofpoker.com/registration/2007/
> - Click on Pre-register now for the 2007 World Series of Poker!
> - Fill in your player information and tick Event 55
> - Tick which day you prefer to start
> - Tick the method of payment you want to use for the deposit of the buy-in amount
> - After completing the pre-registration form, you will be contacted directly by Harrah's.
>
> 2. Register directly at the Rio
>
> - Go to the Rio Conference Center where the World Series Events are taking place
> - Go to the Cashier with proof of ID and $10,000 cash for the buy-in
>
> While it was our intention to arrange hotel accommodations for all qualifiers as we have in the past, we are now unable to handle these arrangements. However, we will still pay you the $1,000 in lieu of accommodation if you wear PokerStars clothing. We will send you an email nearer the time with instructions on how to pick up your player bag, where after the $1,000 towards accommodation will be deposited in your PokerStars account. If you're still playing in the main event on July 11th, we'll deposit another $1,000 towards your additional expenses.
>
> We are pleased to inform you however, that we have secured a limited number of rooms at Treasure Island exclusively for our Supernova members. Supernovas can use Frequent Player Points to purchase their hotel room at Treasure Island until the the supply lasts. If you wish to do so please email us at wsop@pokerstars.com.
>
> Harrah's is also offering special room rates to all players that pre-register for the World Series Events. You'll get special pre-entrant rates starting at $85 per night. When you officially register and pay your entry fee for the Main Event, the hotel will automatically convert your rate to the exclusive entrant rate. These pre-entrant rates are available at Bally's Las Vegas, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas, Paris Las Vegas, and Rio All-Suite Hotel & Casino. For more details please go to http://www.worldseriesofpoker.com/reservations/
>
> In addition, we have added a page on our website with Las Vegas hotel details at http://www.pokerstars.com/wsop/hotels/ to help you make accommodation arrangements.
>
> While we recognize these changes might inconvenience you, there is simply nothing we can do to remedy the situation. It is now your responsibility to buy-in for the Main Event and arrange for your own travel and accommodations. All of us at PokerStars sincerely regret any inconvenience that this may cause.
>
> Thank you for your understanding and your continued loyalty to PokerStars.
>
> If you have any questions or problems, please do not hesitate to contact us at wsop@pokerstars.com
>
> Sincerely,
> The PokerStars WSOP* Team
>
> * World Series of Poker and WSOP are trademarks of Harrah's License Company, LLC ("Harrah's"). Harrah's does not sponsor or endorse, and is not associated or affiliated with, PokerStars or its products, services, promotions or tournaments.

[/ QUOTE ]

[DrSavage]

I really don't think this changes the tax situation in any way, if you won a satellite you should pay taxes on that 10k win and then deduct it as a loss for entering the WSOP, same way as it always was. You can deduct the 1k for accommodations and such too if you're filing as a pro i believe.

[adanthar]

[ QUOTE ]
I really don't think this changes the tax situation in any way, if you won a satellite you should pay taxes on that 10k win and then deduct it as a loss for entering the WSOP, same way as it always was. You can deduct the 1k for accommodations and such too if you're filing as a pro i believe.

[/ QUOTE ]

absolutely.

[FlyWf]

Also it seems like they are giving cash in lieu of hotel rooms, which is pretty much a fantastic thing.

summary: Now slightly harder to evade taxes on WSOP entries.

[davebreal]

[ QUOTE ]
I really don't think this changes the tax situation in any way, if you won a satellite you should pay taxes on that 10k win and then deduct it as a loss for entering the WSOP, same way as it always was. You can deduct the 1k for accommodations and such too if you're filing as a pro i believe.

[/ QUOTE ]

Do you pay taxes on your online poker store purchases???

Do you honestly think that making these deductions are going to offset the tax costs to us? Shouldn't we just be buying our own entries out of our own pockets now to avoid paying the taxes on this $10,000 "income credit" to our PokerStars accounts?

[MicroBob]

dr savage - i agree.

[davebreal]

[ QUOTE ]
Also it seems like they are giving cash in lieu of hotel rooms, which is pretty much a fantastic thing.

[/ QUOTE ]

Hi, I'm Earth.

PokerStars has been offering $1,000 in lieu of accomodations for years now.

Thanks.

[kyleb]

[ QUOTE ]
[ QUOTE ]
I really don't think this changes the tax situation in any way, if you won a satellite you should pay taxes on that 10k win and then deduct it as a loss for entering the WSOP, same way as it always was. You can deduct the 1k for accommodations and such too if you're filing as a pro i believe.

[/ QUOTE ]

Do you pay taxes on your online poker store purchases???

Do you honestly think that making these deductions are going to offset the tax costs to us? Shouldn't we just be buying our own entries out of our own pockets now to avoid paying the taxes on this $10,000 "income credit" to our PokerStars accounts?

[/ QUOTE ]

It's not whether or not you DO it, but it's whether or not you SHOULD.

And you should have been paying taxes.

[DrSavage]

[ QUOTE ]


Do you pay taxes on your online poker store purchases???


[/ QUOTE ]

You are supposed to, yes.

[ QUOTE ]

Do you honestly think that making these deductions are going to offset the tax costs to us?


[/ QUOTE ]

Somewhat. I didn't make those laws.

[davebreal]

[ QUOTE ]
It's not whether or not you DO it, but it's whether or not you SHOULD.

And you should have been paying taxes.

[/ QUOTE ]

Ok, nobody is getting the point... million dollar question:
Would you rather "buy" $10,000 from the FPP store, or would you rather write a $10,000 check from your personal account for WSOP entrance.