New Tax Law - Witholding

[unconscious]

God bless.....Canada....

[shaniac]

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Yes, Canadians already pay a witholding tax (which is why I rarely go to US tourneys)

Ryan

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but you get the money that was withheld back at the end of the year from your own government, right? I don't see how it negatively impacts you.

[LearnedfromTV]

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also, this really really sucks. i need to speak to an accountant about wtf im supposed to do moving forward.

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What's the issue "moving forward" if you intended to pay your taxes, anyway?

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Not the end of the world if you pay your taxes but:

- The money from people who weren't going to pay taxes leaves the poker economy.

- Government doesn't immediately refund the same percentage from tournaments in which you don't cash, which hurts cash flow.

- Makes backing situations more confusing.

[BigAlK]

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Yes, Canadians already pay a witholding tax (which is why I rarely go to US tourneys)

Ryan

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but you get the money that was withheld back at the end of the year from your own government, right? I don't see how it negatively impacts you.

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Sure, If you've been playing straight on your taxes then you'll end up the same as you would have otherwise. (If we don't mention that you're making an interest free loan to the government with money that might have been earning you interest elsewhere.) But that assumes you're a winning player with an unlimited bankroll. Take away the unlimited bankroll and a winning player trying to exercise good bankroll management will be negatively impacted much more by a losing streak. The 25% you didn't get from that big win at the start of the year could make a big difference by the end of the year.

Take away both assumptions and it matters even more. The 25% withheld from the losing player is money he won't have to lose until sometime the next year.

[woodguy]

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but you get the money that was withheld back at the end of the year from your own government, right? I don't see how it negatively impacts you.

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No. The tax withheld by the US gov is an "income" tax on me for my winnings in the US, the Canadian gov has nothing to do with it.

The only way to get any $$$ back to to file in the US and prove gambling losses, and get your $$$ back from the US gov.

For $$$ won in Canada, they are tax free as the Canadian gov doesn't view lottery or gambling winnings as "income".

Regards,
Canadian Woodguy

[Valentyno]

Right.

Caveat is that investment income from gambling is taxed. It's just as well sports books are run by goverments in Canada anyway and redirected to charities.

Wanderin' Toranna/Newf. We always get the next joke, and we don't know where the hell it goes either.

Cheers.

[bigballz]

man I read through this whole thread before reading the article and got all worried, then realized its only for live poker. Whatever

[NoahSD]

Is dmk's interpretation correct that nobody's going to be paying extra taxes, they're just gonna be paying them sooner (and losing interest I guess)?

[MatteyA28]

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Is dmk's interpretation correct that nobody's going to be paying extra taxes, they're just gonna be paying them sooner (and losing interest I guess)?

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Yes. It is the same as getting a paycheck at your job and getting money withheld for federal income taxes, then getting a refund check when you file in April. Also nuts to losing interest, people need that money to gambooooool.

[shaniac]

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Is dmk's interpretation correct that nobody's going to be paying extra taxes, they're just gonna be paying them sooner (and losing interest I guess)?

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That seems to be the correct interpretation, although it hasn't stopped several people from proclaiming their love for cash games, online poker and for being a non-US citizen. The new system, if it gets adopted by casinos, will be bad for people who don't file taxes and it will complicate some backing arrangements, but it should not change the total amount of one's tax liability.