poker tournaments may be a thing of the past

[DonkStrike]

With the IRS ruling that properties must hold 25% of poker tournament winnings over $5,000, who will have any money left to play?

I can't wait to see the revolt from all of the players who put up $10,000 plus juice, get in the money, go collect their $16,000 and find the casino only gives them $12,000. As the 25% held back for taxes is on the entire amount won, not the net (as I understand it).

Of course, you can't carry forward loses, so this puts anyone playing tournament poker so far behind the "eight ball", that there is no way to come out ahead.

[rafiki]

this thread exists already right below.

lol cantreadaments

[ravenfan1733]

[ QUOTE ]
With the IRS ruling that properties must hold 25% of poker tournament winnings over $5,000, who will have any money left to play?

I can't wait to see the revolt from all of the players who put up $10,000 plus juice, get in the money, go collect their $16,000 and find the casino only gives them $12,000. As the 25% held back for taxes is on the entire amount won, not the net (as I understand it).

Of course, you can't carry forward loses, so this puts anyone playing tournament poker so far behind the "eight ball", that there is no way to come out ahead.

[/ QUOTE ]

I do not think you are correct. The casino must take into account the buy-in for the tournament so in your example, the "winnings" would be $6,000 (minus juice over $10K) so the tax withheld would be $1,500.

I do hate the IRS tho.

[DonkStrike]

I'm not sure the casino has to deduct the buy-in as those are expenses. If they deduct the buy-in, then they would, also, need to collect additional money from sat winners.

Play a sat for $1,000...win a $10,000 seat. Get taxed 25% on $9,000 or $2250? That will go over like a led zepplin.

[WoodPaneling]

Isn't this just withholding though, like money that comes out of your paycheck every week? Like if someone works a regular job and happens to have like $10k in taxed tournament winnings in a year, doesn't he just square that all up when he files his 1040 and get a larger tax refund because too much was withheld from his poker income?

[Apathy]

[ QUOTE ]
[ QUOTE ]
With the IRS ruling that properties must hold 25% of poker tournament winnings over $5,000, who will have any money left to play?

I can't wait to see the revolt from all of the players who put up $10,000 plus juice, get in the money, go collect their $16,000 and find the casino only gives them $12,000. As the 25% held back for taxes is on the entire amount won, not the net (as I understand it).

Of course, you can't carry forward loses, so this puts anyone playing tournament poker so far behind the "eight ball", that there is no way to come out ahead.

[/ QUOTE ]

I do not think you are correct. The casino must take into account the buy-in for the tournament so in your example, the "winnings" would be $6,000 (minus juice over $10K) so the tax withheld would be $1,500.

I do hate the IRS tho.

[/ QUOTE ]


No you would get taxed on the full cash most likely, thats what the IRS withholds for canadians.

[Franchise 60]

[ QUOTE ]
I'm not sure the casino has to deduct the buy-in as those are expenses. If they deduct the buy-in, then they would, also, need to collect additional money from sat winners.

Play a sat for $1,000...win a $10,000 seat. Get taxed 25% on $9,000 or $2250? That will go over like a led zepplin.

[/ QUOTE ]

Why would they deduct additional money from sat winners? Sat winners are still paying 10k, if they choose to they could pocket that money.

[nineinchal]

[ QUOTE ]
With the IRS ruling that properties must hold 25% of poker tournament winnings over $5,000, who will have any money left to play?

I can't wait to see the revolt from all of the players who put up $10,000 plus juice, get in the money, go collect their $16,000 and find the casino only gives them $12,000. As the 25% held back for taxes is on the entire amount won, not the net (as I understand it).

Of course, you can't carry forward loses, so this puts anyone playing tournament poker so far behind the "eight ball", that there is no way to come out ahead.

[/ QUOTE ]

Its a withholding, so they just withhold it, for the IRS. If you have a loss at the end of the year, it gets refunded. If you are a net winner, then you pay tax on the net winnings for the year, and any tax withheld is credited against your total tax liability.

[sethypooh21]

These threads indirectly demonstrate that games are still good.

[Franchise 60]

[ QUOTE ]
These threads indirectly demonstrate that games are still good.

[/ QUOTE ]

lol, so true.