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Swap agreements, What is Standard?

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  1. Spaceh0g Spaceh0g is offline

    United States

    Posts: 348
    Joined: Feb 07

    May 23rd, 2011 (5/23/2011 6:50am)

    When agreeing to swap % with another player in a live tournament, what is the general arrangement? Do you get a % of the gross or the profit? Should they include taxes that they have to pay before figuring out dollar amount they owe you or should they just give you your money and let you worry about taxes. Thanks for the info all!
  2. C_Bomb C_Bomb is offline

    Croydon
    Australia

    Posts: 755
    Joined: Jun 09

    May 23rd, 2011 (5/23/2011 7:51am) in reply to Spaceh0g

    There is no standard.

    You just need to be clear before you agree and both accept it.

    I usually swap with a buddy of mine and we do 10% of the total profit to a max figure (that changes depending on the payouts)

    Our last one was 10% up to $2k after stakeback/share. So if he cashed for $7k and it was a $200 tourney and I whiffed, I'd get $680.

    If I won $25k He'd get $2k.

    We also called off the deal if we both FT'd the same tourney.

    We set a max to ensure that if one of us cashed big, that player would still get a significant pay day.

    When it boils down, just layout all of the things that could happen and if you're not happy before you start just say no thanks.
  3. Gags30 Gags30 is offline

    Posts: 6,696
    Joined: Aug 07

    May 23rd, 2011 (5/23/2011 7:58am) in reply to C_Bomb

     
    Originally Posted by C_Bomb View Post

    There is no standard.

    You just need to be clear before you agree and both accept it.

    I usually swap with a buddy of mine and we do 10% of the total profit to a max figure (that changes depending on the payouts)

    Our last one was 10% up to $2k after stakeback/share. So if he cashed for $7k and it was a $200 tourney and I whiffed, I'd get $680.

    If I won $25k He'd get $2k.

    We also called off the deal if we both FT'd the same tourney.

    We set a max to ensure that if one of us cashed big, that player would still get a significant pay day.

    When it boils down, just layout all of the things that could happen and if you're not happy before you start just say no thanks.


    this is not entirely accurate

    it's always best to specify before you agree to anything...but in general, swaps are on the total cash...if you swap 10% and you cashes for 25k, you owe 2500. as far as taxes...give them their 10%, let them pay their own taxes, fill out the appropriate irs forms telling them that you gave the money to someone else (casino should ahve tehse, i forget what it is...it's a 54something...like 5493 or something)
    170 2 

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  4. Appst08 Appst08 is offline

    Posts: 5,543
    Joined: Sep 07

    May 23rd, 2011 (5/23/2011 5:17pm) in reply to Gags30

     
    Originally Posted by Gags30 View Post

    this is not entirely accurate

    it's always best to specify before you agree to anything...but in general, swaps are on the total cash...if you swap 10% and you cashes for 25k, you owe 2500. as far as taxes...give them their 10%, let them pay their own taxes, fill out the appropriate irs forms telling them that you gave the money to someone else (casino should ahve tehse, i forget what it is...it's a 54something...like 5493 or something)

    it's a 5754. Which iirc isn't accepted at the rio.

    You will have to give your friend a 1099 i think.
     
  5. yarbles yarbles is offline

    Montreal
    Canada

    Posts: 792
    Joined: Sep 09

    May 23rd, 2011 (5/23/2011 5:29pm) in reply to Spaceh0g

     
    Originally Posted by Spaceh0g View Post

    When agreeing to swap % with another player in a live tournament, what is the general arrangement? Do you get a % of the gross or the profit? Should they include taxes that they have to pay before figuring out dollar amount they owe you or should they just give you your money and let you worry about taxes. Thanks for the info all!

    swapping is different then buying a piece so imo it should be consistent with whatever u choose to do... i mean if u both swapping 5 percent then just do it gross its easier that way... ur not losing anything by taxes cause he would of paid u the same if he won but when buying a piece of someone taxes have to be brought into consideration for the obv reasons.
    439 
  6. Moonlight Graham Moonlight Graham is offline

    PA
    United States

    Posts: 6,442
    Joined: Mar 09

    May 23rd, 2011 (5/23/2011 7:15pm) in reply to yarbles

    I always specify gross, or accept the counter offer of "after buy-ins back".
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