Paying taxes overseas in lieu of paying taxes at home.

[MiltonFriedman]

Next time it comes up in Tax Court, someone could argue the Humphreys case, but will likely lose because that was a different statute than the tax code.

The interesting thing about Tschetschot v. Commissioner is that even it puts the "betting" activity at the player level, not the poker tournament sponsor level. ... a point somewhat relevant under UIGEA.

[BrassMonkey]

[ QUOTE ]
Berge is correct, you would need to pass residency tests, not just source of income tests to qualify for any foreign earned income exclusion.

If you stay/live in the US, forget it. You would not qualify.

[/ QUOTE ]

I believe that I'm set, in that I will have spent 330 out of a 365 day window out of the United States, which is what is required to pass the "residency test". I don't think that it has to be 330 out of 365 of a given tax year, either. Having said that, it probably wouldn't hurt to consult a tax professional the first time I try filing this way.

[Merkle]

Thank you Russ for the acknowledgement. I know quite a few professional chess players and I was under the impression that their tournament winnings were not treated as gambling income. I see no reason why poker income (especially tournaments) should not be treated the same as chess tournament income.

I believe having this acknowledge by the IRS would go a long way to moving it into a skill game category. Or would the inverse be true, if poker is declared a game of skill by the Wexler bill would that change the tax treatment of poker income?