So I called a CPA..

ginko · #1 04-02-2006, 08:09 PM

She says to file under "other" to avoid the 15% self employment tax. If I go this route, how do I calculate how much I owe?

If I file as professional(which I can do), I just use my net. But I have no clue on the other way. Any ideas? Guys?

Ron Burgundy · #2 04-02-2006, 09:01 PM

Call the CPA back and tell her that you want her to actually prepare your taxes for you.

ginko · #3 04-02-2006, 10:54 PM

Yea but I was wondering what files I need to bring? If I go her route, don't I need to add up each session or something? That would require me to print out every hand history.

Thats my confusion. Thanks for your time Ron.

Ron Burgundy · #4 04-03-2006, 01:16 AM

You should be recording the results of every session. If you play online, days can count as sessions. What the CPA needs to know is the total of all winning sessions and the total of all losing sessions.

Niediam · #5 04-03-2006, 03:59 AM

[ QUOTE ]
session. If you play online, days can count as sessions.

[/ QUOTE ]

You really should say something along the lines of... "Some people here believe the IRS may accept a day as a session even though there is no precident either way." as opposed to claiming it as if it were a fact. [img]/images/graemlins/smile.gif[/img]

Megenoita · #6 04-03-2006, 11:12 AM

Isn't filing under "other" technically illegal? Am I wrong here?

MatthewRyan · #7 04-03-2006, 01:29 PM

There is a specific spot for gambeling winnings, so it is probably illegal to not do so.

DING-DONG YO · #8 04-03-2006, 01:46 PM

Alright, I don't know how many times we have to go over this same question. You guys are looking for some iron clad, 100% answer to this question. Sorry, but you're not going to find it. Some people have made some great posts about taxes on this board. Here is one of the mediocre ones (Ding-Dong's post). Do a search and find some of the others.

You have just about all the information that is out there. Use it and make a decision. Just like poker.

And just one last thought. You're not going to jail for reporting net in other income. I (CPA) have said it, and every other CPA you talk to will agree with me. Maybe they all tell you to net in other income because (gasp), they know what they're talking about.

bobbyi · #9 04-03-2006, 02:46 PM

[ QUOTE ]
If you play online, days can count as sessions.

[/ QUOTE ]
That's only true if you actually play one session per day. If you play everyday from 10AM until noon and then again from 9PM to 11PM, I don't think any reasonable person (or court) would agree with you that that was exactly one session per day.

broiler · #10 04-03-2006, 02:47 PM

It is time for some professional disagreement.

The reason that any CPA tells someone to net is solely based upon the likelihood of getting caught. No CPA that deals with IRS auditors on a regular basis would advise to net.

Are you familiar with the IRS circular on knowingly giving incorrect advice? My office has had the local IRS examiners in our office to audit gamblers, so they know that we know better than to net. Our local IRS office has cracked down on firms caught giving bad/fradulaent tax advice.

Just because a tax program will let you put the information in any way that you want, doesn't make it correct according to the law/tax court rulings.

To repeat: netting is always incorrect, but the decision to do so is up to the person preparing and signing the tax return.