My new CPA says I should file as a corporation???

[Russ Fox]

[ QUOTE ]
Say for '07 all of my non-poker income was passive, would the fact that all my active income change how the IRS determined my need to file as a pro? Yes I am a winning player. Personally I do not think the amount of winnings makes it reasonable, but I could not get the IRS to give me any idea even in the most broad terms of dollar amounts what is the threshold, if there is any.

[/ QUOTE ]

The rule is that if you are gambling "full time" and "for your livelihood," you are a professional. Without knowing the full facts of your situation--reviewing your numbers--I can't tell you whether or not you should file as a professional.

-- Russ Fox

[chesterboy]

Hey Russ if I have sizeable income from poker (60k+) but I am a full time student, do I still have to do the self employed thing?

[DeadMoneyDad]

[ QUOTE ]
[ QUOTE ]
Say for '07 all of my non-poker income was passive, would the fact that all my active income change how the IRS determined my need to file as a pro? Yes I am a winning player. Personally I do not think the amount of winnings makes it reasonable, but I could not get the IRS to give me any idea even in the most broad terms of dollar amounts what is the threshold, if there is any.

[/ QUOTE ]

The rule is that if you are gambling "full time" and "for your livelihood," you are a professional. Without knowing the full facts of your situation--reviewing your numbers--I can't tell you whether or not you should file as a professional.

-- Russ Fox

[/ QUOTE ]

Well for '07 so far it is my only "active" income, even paying the SE bite is pretty minimal.

What is or can you direct me to any info on deductibility of educational and industry related materials, along the lines of say Union, or for example as a broker I used to be able to deduct "continuing educational" expenses, as well as most all publications involving my "profession"?

I guess for fun I could file a quarterly estimated payment now and not have to await 4/15, well the extension date (I'm one of those) to see where I stand on this issue. That might allow me to get a "ruling" now and not complicate other issues.

Or not?


D$D

[JuntMonkey]

[ QUOTE ]
Vote for Ron Paul

[/ QUOTE ]

[kahntrutahn]

I file under an s-corp and I pay myself 6 figures as CEO + a fat yearly bonus. My CPA tells me its pretty important to pay more than 6 figures so that I pay full medicare taxes and some other stuff... this makes the IRS happy b/c most people try to circumvent these taxes by paying a paltry salary... which is cheating and a red flag.

Pay yourself a proper salary is the point..........

[DEAD ON IMPACT]

kahntrutahn..do you pay your taxes quartely or just once a year?

[Russ Fox]

[ QUOTE ]
if I have sizeable income from poker (60k+) but I am a full time student, do I still have to do the self employed thing?

[/ QUOTE ]

Without knowing the full details of your situation all I can do is speculate. I will say that a full-time student can be an amateur player (gross wins as other income, gross losses as an itemized deduction on Schedule A). Whether that's the best way to handle your situation, though, is something you and your professional tax adviser will have to determine.

-- Russ Fox

[Russ Fox]

[ QUOTE ]
What is or can you direct me to any info on deductibility of educational and industry related materials, along the lines of say Union, or for example as a broker I used to be able to deduct "continuing educational" expenses, as well as most all publications involving my "profession"?


[/ QUOTE ]

The IRS website has a wealth of information. The deductions you ask about are miscellaneous itemized deductions. The IRS has a page devoted to these deductions, with links to other related topics.

As to whether or not you should (or need to) make an estimated payment, you should discuss this with your own professional tax adviser. He or she can run the numbers and see what's right for your situation.

-- Russ Fox

[depokerstar]

I file as an S corp, but it is not poker/gambling related nor do I do it to try and dodge taxes, hide income, etc. I own a legit business.

I just received the following letter from my CPA this morning...

"Dear S Corporation Shareholder:

Due to the completion of the special IRS audit program on 5,000 S Corporation returns, it is anticipated that S corporations will be coming under more intense scrutinty by the IRS. Approximately 95% of the returns audited were found to have compliance problems. The Service is now armed with a lost of potential problem areas, and they will be on the lookout for returns that don't appear to comply. So what issues we believe they will be looking at?

Inadequate Compensation - not taking a salary or taking an unreasonably low salary.
Health Insurance - paid by the company
Loans - to and from your business
Employee Bonuses
Unreimbursed shareholder business expenses"

3 additional pages discussing the points above

[DeadMoneyDad]

[ QUOTE ]

The IRS website has a wealth of information. The deductions you ask about are miscellaneous itemized deductions. The IRS has a page devoted to these deductions, with links to other related topics.

As to whether or not you should (or need to) make an estimated payment, you should discuss this with your own professional tax adviser. He or she can run the numbers and see what's right for your situation.

-- Russ Fox

[/ QUOTE ]

Russ,

Thank you. You are very modest in that you never post your own URL. The wealth of information therein and listed in the many links are a fantasic resource.

Reading tax information is not everyones cup of tea, but the link to the The Bozo Criminal of the Day alone is worth possibly breaking any rule against me posting a dot com url.

The link to Recording for the Blind and Dyslexic was especially important to me personally, but not for the most likely imagined reasons. [img]/images/graemlins/grin.gif[/img]

So for what it is worth even the potential harm of my personal endoresment I think a note of thanks for your "volunteer" work here deserves a free commercial plug.


D$D<-- possibly granting an early Christmas wish to many by self causing a forced "vacation" for possible forum rules violations.