Awful WSOP news from PokerStars - Page 14

Lord Bodak · #**131** 05-07-2007, 06:44 PM

From the legal tax standpoint, it doesn't matter. If you satellite in you won $10,000 and you are required to pay taxes on it. It doesn't matter if you get cash or an entry into the main event, you won $10,000.

The only way this would make a difference is if someone is planning on not reporting the $10,000 winnings from the satellite.

bav · #**132** 05-08-2007, 08:27 AM

[ QUOTE ]
From the legal tax standpoint, it doesn't matter. If you satellite in you won $10,000 and you are required to pay taxes on it. It doesn't matter if you get cash or an entry into the main event, you won $10,000.

[/ QUOTE ]
If you win a seat that has no cash value, cannot be sold, and cannot be transfered is that true? Rio and Harrah's freerolls give out main event seats, which the winner MUST use to play the main event. So if you cannot play, it has 0 value to you. As well, since you cannot get anything out of it without playing the main event, sure seems like it should be treated just like the first of a 2-stage bet. Until you play the main event, the gambling "event" isn't over.

Also seems like Harrah's must believe this as well since they don't give the winners any federal paperwork.

Lord Bodak · #**133** 05-08-2007, 08:27 PM

I guess on something like that you're in a big gray area. That's the problem with the tax laws on gambling, they're still a lot of gray.

However, if you claim it as $10k income and then $10k loss for the entry fee (if you don't cash), it should be a wash from a tax standpoint, unless itemizing your deductions costs you.

THAT is the biggest thing that is idiotic about gambling tax laws. They should be treated like capital gains & losses, rather than the stupid deduction method they require.