Taxes question - what is the definition of a session?

spino1i · #1 01-25-2006, 04:20 PM

It seems like how much you pay in taxes is dependant on how you can declare your sessions..

If I played poker for a while then stop for 5 mins to take a cigarette break, then come back and play, would that be considered two sessions?

How long do you have to stop playing for it to be considered another session when you start up again?

RED_RAIN · #2 01-25-2006, 04:24 PM

i consider a full day regardless of breaks, time whatever.

maybe not right, but it's what i'm going to do regardless

BigPoppa · #3 01-25-2006, 04:26 PM

That's a place where the tax code doesn't keep up with the internet age. The rules were in place for B&M gambling where a session started when you got there and ended when you left. I doubt they would consider taking a smoke break to be starting a new session.

If I'm multitabling at one site and move multiple times when tables break, I consider that all one big session.

But what if I have multiple sites open?

What if I play multiple times at one site throughout the day?

jman220 · #4 01-25-2006, 04:28 PM

[ QUOTE ]
That's a place where the tax code doesn't keep up with the internet age. The rules were in place for B&M gambling where a session started when you got there and ended when you left. I doubt they would consider taking a smoke break to be starting a new session.

If I'm multitabling at one site and move multiple times when tables break, I consider that all one big session.

But what if I have multiple sites open?

What if I play multiple times at one site throughout the day?

[/ QUOTE ]

What if you leave the site's software open overnight? I'm thinking about testing this theory.

Dave H. · #5 01-25-2006, 04:41 PM

FWIW, I have a CPA whom I happen to believe is excellent. I have read the tax laws regarding this at length, and so has he. He has assured me that, although not "spot on", tracking wins and losses BY DAY (as Red Rain does) is fine as long as your "tracking" calendar can be produced if necessary. He has lots of clients (and I've checked this out) who claim B&M and Internet wins/losses. Very few have been audited and my CPA's claim is, once again, that the IRS has no problem with one day as one session.

He does emphasize, once again, that this is not "spot on", but a good faith attempt is what counts.

Niediam · #6 01-25-2006, 04:56 PM

That is definately not the definition of a B&M session See this link to start even though there several IRS rulings on the subject which would contradict your statement:

http://www.gambling-law-us.com/Artic...ng-Session.htm

It also seems clear to me that the 'one day for online play' is clearly not a session based upon IRS rulings... but the real question is if they are going to try and nail people for it or just say 'well, that's close enough.'

iceman5 · #7 01-25-2006, 05:16 PM

I love all these tax questions. Heres what I want to know.
Lets assume Im a casual poker player like most non 2+2 ers.

I dont have pokertracker. I dont keep records. I dont get a W-2G from anyone. All I know is that at the end of the year I won $XXX.

What is the IRS going to do when I report that number? Audit me? They need records to audit you and the only records I may have is my bank statement showing withdrawals from Neteller and those withdrawals are going to match the number that I report as income.

spino1i · #8 01-25-2006, 05:36 PM

[ QUOTE ]
I love all these tax questions. Heres what I want to know.
Lets assume Im a casual poker player like most non 2+2 ers.

I dont have pokertracker. I dont keep records. I dont get a W-2G from anyone. All I know is that at the end of the year I won $XXX.

What is the IRS going to do when I report that number? Audit me? They need records to audit you and the only records I may have is my bank statement showing withdrawals from Neteller and those withdrawals are going to match the number that I report as income.

[/ QUOTE ]

I am just going to conviently claim that I never made any large amounts of money and if neccessary produce records that show I broke even every session by conviently defining the session as whatever length of time I want.

Yes the 1 day session makes sense, but if I could make it whatever time length I want, the IRS would have a hard time collecting much money from me.

Legally it doesn't say what a session is online, so what are they going to say?

cardcounter0 · #9 01-25-2006, 05:42 PM

The link you site is not an IRS ruling or opinion. It is the opinion of probably the most conservative CPA you can find in regards to gambling.

And even he says: The common-sense definition, though, of playing the same game continuously should stand up to IRS scrutiny.

So the one day-one session definition is most likely acceptable, unless you have some incredible extra-ordinary circumstances (like playing in multiple B&M tournaments in multiple locations on the same day).

cardcounter0 · #10 01-25-2006, 05:49 PM

[ QUOTE ]
Legally it doesn't say what a session is online, so what are they going to say?

[/ QUOTE ]

They are going to say "You owe us $X dollars, prove that you don't." (where X is a ridiculously large amount).

Since you won't have the necessary detailed records to prove the real actual $X that you owe, they will seize your assets, freeze your bank accounts, garnish your wages, etc. until they get the $X (plus interest, penalities, and extra fees).