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#2
04-15-2006, 08:13 PM
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Re: Are T$ taxable if you don\'t sell them ??
Possibly to the extent of the fair market value of the T$.
There are a couple of reasonable approaches on this. The most favorable is to use an open-transaction methodology. Until the T$ are sold or used in a tourney, the T$ would not be taxable. 
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#3
04-16-2006, 02:21 AM
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Re: Are T$ taxable if you don\'t sell them ??
I'm going to go with 'probably not'.
Winning a satilite for entry into another tournament is not taxable*. It's a little different here as you are not winning entry into a specific tournament. But even if it is taxable you would be able to deduct your entry fees used with the T$. *Things won in the satilite besides the actual entry fee - such as airfare, hotel, food money, etc - are taxable though.
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#4
04-16-2006, 10:05 PM
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Re: Are T$ taxable if you don\'t sell them ??
[ QUOTE ]
I'm going to go with 'probably not'. Winning a satilite for entry into another tournament is not taxable*. It's a little different here as you are not winning entry into a specific tournament. But even if it is taxable you would be able to deduct your entry fees used with the T$. *Things won in the satilite besides the actual entry fee - such as airfare, hotel, food money, etc - are taxable though. [/ QUOTE ] Why do you believe a Satellite win to not be taxable at value? Source?
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#5
04-16-2006, 10:16 PM
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Re: Are T$ taxable if you don\'t sell them ??
There have been multiple threads about this in the past year or so... I don't have the links to the threads though. But it became accepted that they were not taxable as there were some links to relevent information and one person even contacted the IRS and they said it was not taxable.
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#7
04-17-2006, 07:22 PM
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Re: Are T$ taxable if you don\'t sell them ??
[ QUOTE ]
[ QUOTE ] I'm going to go with 'probably not'. Winning a satilite for entry into another tournament is not taxable*. It's a little different here as you are not winning entry into a specific tournament. But even if it is taxable you would be able to deduct your entry fees used with the T$. *Things won in the satilite besides the actual entry fee - such as airfare, hotel, food money, etc - are taxable though. [/ QUOTE ] Why do you believe a Satellite win to not be taxable at value? Source? [/ QUOTE ] The answer I've heard in the past is that if you can convert it into cash then it is taxable. I.e., if you win a satellite that will either pay you $10,000 or a WSOP main event entry then even if you choose the WSOP main event entry you owe taxes on the satellite win. If however you win a satellite that is only a seat to the main event and can't be traded for cash you don't owe tax because it is one big event (I.e., if you win nothing from the WSOP main event then you have a single session that you've lost the satellite entry fee, if you win a cash prize at the main event then you've won prize-satellite entry fee). If the site will give you cash for T$ then they are definitely taxable. If the site will not give you cash for it, but there is a secondary market for them I'm not sure. If there is no way for you to use your T$ for anything but tournament entries then it should not be taxable. This information was from reading a bunch of online articles on tax treatment by various CPA/tax lawyers who have interest in gambling law, but like anything in this space may or may not be acceptable to the IRS.
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