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

SgtJake · #1 11-13-2007, 04:08 PM

So I'm going pro in 2008 and will have no income from any source other than pokah. The CPA I met with today said I should file as a corporation. Something along the lines of "sub chapter S while you incorporate - earnings from S corps are not subject to self employment tax".

This does not jive with anything I've previously read on 2+2.

I suck ass at the search feature. Can someone please describe the basics of filing as a professional (or linky).

Bishop22 · #2 11-13-2007, 04:48 PM

You can't incorporate as a professional gambler, your accountant is an idiot, or at the very least, making reckless assumptions about a topic he hasn't come across yet.

DING-DONG YO · #3 11-13-2007, 05:20 PM

considering his advice is appropriate for just about any other money making venture, I wouldn't quite say he's reckless or an idiot, just ill-informed about this specific topic.

SgtJake · #4 11-13-2007, 06:22 PM

Ok so if all my income comes from online poker, then I .....

- File as a professional gambler/poker player
- Keep accurate records of wins/losses
- Net wins/losses to come up with net income
- Deduct portion of utilities, mortgage, internet, computer, office furniture, garbage, lawn? snow plowing? etc

What am I missing? Is there anything else I can do to reduce my tax burden?

Artsemis · #5 11-13-2007, 06:29 PM

Vote for Ron Paul

poorolrich · #6 11-13-2007, 08:54 PM

Claiming your house will set off a red flag, especially for first time filers using their home as a work place. When I used my home as a write off(partial) I had a small room that I only used as an office. They did audit and I passed as soon as he saw my office. When you combine work and pleasure in the same room that is what usually trips people up. Remember, you are quilty and will have to prove your innocence. Good luck

ikestoys · #7 11-13-2007, 10:09 PM

[ QUOTE ]
You can't incorporate as a professional gambler

[/ QUOTE ]

Ummmm... yes you can

permafrost · #8 11-13-2007, 10:16 PM

[ QUOTE ]
Is there anything else I can do to reduce my tax burden?

[/ QUOTE ]

Retirement funds, charity, home mortgage, other tax, spouse, kids....

There is a tax matters link in the IG forum faq.

SgtJake · #9 11-14-2007, 01:51 AM

[ QUOTE ]
[ QUOTE ]
You can't incorporate as a professional gambler

[/ QUOTE ]

Ummmm... yes you can

[/ QUOTE ]

Please elaborate Ike.

Legislurker · #10 11-14-2007, 04:18 AM

You can do it, what happens if they decide to audit you is a different matter. Im not aware of a court case where an online pro who used a corporation in an OFC without income taxes has been audited. Im not sure it would fly in a particular state. Esepcially if you have one where gambling as a business is defined as a crime.