wat?

Not sure, but you are definitely correct that you can be taxed on monies in your accounts (that is if you have gained them from this years profits).

So you're saying all poker sites will be reporting balances to the govt.

FWIW I'm almost positive you can't be taxed on money that isn't obtainable bc it isn't income if it isn't obtainable. You wouldn't be taxed in '09 for a paycheck you earned in December '09 but were unable to get until January '10

But wtf are you talking about?

Clearly he's asking if everyone's going to go Christmas Shopping with their poker rolls.

But seriously...wtf is going on. A law passing or whaaa?

 

Originally Posted by bef99hwk

Weird question...but I"ll prolly lose it all before then. And I pay taxes on what I withdrawal during the year, not what's left in my acct for that simple reason.

your actually taxed on whats in your accounts at midnight dec 31st.

You may want to research the UIGEA a little more. I don't think anything monumental will be happening in December.

And no, you aren't taxed on what is in your account at year end. You should contact a tax professional for more specific advice or get a new one if you're being told that by one.

 

Originally Posted by periferel

your actually taxed on whats in your accounts at midnight dec 31st.

I'm hoping this is a level, because this is not true.

I'm pretty sure most tax professionals advise that you are in fact taxed on money in your account at year end(assuming it is profit). If you reported that you had $5K online year end 2008, then if you have $5k online year end 2009 you obviously don't owe taxes on that $5k as you should have paid any appropriate taxes the previous year.

Cash out before June 2012 too amirite?

 

Originally Posted by Hughes4

Cash out before June 2012 too amirite?

Correct.

 

Originally Posted by EddieO

I'm pretty sure most tax professionals advise that you are in fact taxed on money in your account at year end(assuming it is profit). If you reported that you had $5K online year end 2008, then if you have $5k online year end 2009 you obviously don't owe taxes on that $5k as you should have paid any appropriate taxes the previous year.

What is in bold. And also assuming it is your money.

Otherwise, no you aren't taxed on what is in your account balances. And tell your accountant he needs to read some books if he told you that it is strictly just your account balances that need to be reported as income because it isn't true, although I highly doubt your accountant just told you need to report your account balances as income straight up.

edit: I'm just assuming you were speaking generally and don't really know the significance of being that specific when it comes to taxes.

double edit:

 

Originally Posted by Jennifear

How much you deposit or withdraw, or how much you have in your poker accounts at any time have no bearing whatsoever on what you owe in taxes.

The Banks at that time are supposed to enforce the UIGEA regs about funding from internet gambling sites. See the engineer posts for clarification. He does a damn fine job or keeping us updated on the status of this law and pending lesislation. This was one of Bush's last minute midnite laws he put into effect. Possible Obama could overturn them as 1 whole entity. There is a loophole that allows him to do that. Kat

 

Originally Posted by periferel

well your right your wins-losses = net income. however part of this income may be tied up if you cant withdraw it. you will still be taxed on it bc it is income.

Again, not necessarily. There are very specific tax laws and rules regarding when income is considered income. If you have earned it, but do not have access to it, money is not always considered income until you can actually receive it. The term used in tax law/accounting is constructive receipt.

"For income to be constructively received, the funds must be made available to the taxpayer without substantial limitations." Now I'm sure you could get really technical about this on a case-by-case basis, but if you are blocked from withdrawing money, I'd be pretty certain that would not be considered constructive receipt.

All the OP is saying is the banks are forced to comply with the UIEGA by December. So, I think it is a very good idea to cashout quite a bit before then just to be safe. Since they are forced to comply, the banks might start to look more carefully, thats all.

His tax thing was way off and cleared up by Jennifear. But don't start flaming people for no reason kids. He has obv done a little research on the UIEGA to know that banks must comply with it by then, unlike some people in this thread.