Check out our brand new Local Poker Communities! Get updates and interact with poker players in your area.
Visit the United States Poker Community | Visit the California Poker Community | Read more about the Launch of P5s Local

So a couple of guys wanna back me in local events...

Reply to Thread
  1. fenominal fenominal is offline

    Orangevale, CA
    United States

    Posts: 113
    Joined: Sep 06

    Oct 7th, 2009 (10/7/2009 7:28pm)

    They have seen me play and do well in smaller events in a Casino that one of them happens to own. Are the following figures anything close to normal or reasonable?

    They put up the money.
    I play in 5 events.
    I get 40% off top of all winnings.
    They get 60%.
    I am responsible for all tax issues obv.
    With zero makeup. (They dont even know what it is lol)

    I am drafting up some things right now. Did I strike gold or are these types of deals commonplace when dealing with people outside of the game?

    I wanna do the right thing. I want it to be fair. Is it?
  2. Slingtownorbust Slingtownorbust is offline

    Naklo Nad Notecia
    Poland

    Posts: 1,525
    Joined: May 09

    Oct 7th, 2009 (10/7/2009 7:35pm) in reply to fenominal

    you paying all the taxes seems odd to me.
  3. CalBandGreat CalBandGreat is offline

    Irvine, CA
    United States

    Posts: 1,887
    Joined: Dec 06

    Oct 7th, 2009 (10/7/2009 7:35pm) in reply to fenominal

    40/60 with no makeup is actually a better deal for you then the standard 50/50 deal with makeup BUT, you can't do this deal if you are responsible for all of the tax issues. I mean if you cash for a few hundred then it doesn't matter, but if you cash for over $5K (it used to be anything over $600) then you get a W2G and you are responsible for paying tax on all of the winnings, which means that you will basically get nothing after paying the taxes. You have to tell your backers that you can only report only your actual winnings to the IRS and it is their responsibility to report their winnings.
     
  4. doomed222 doomed222 is offline

    Canton, MI
    United States

    Posts: 5,005
    Joined: Aug 05

    Oct 7th, 2009 (10/7/2009 7:37pm) in reply to CalBandGreat

     
    Originally Posted by CalBandGreat View Post

    40/60 with no makeup is actually a better deal for you then the standard 50/50 deal with makeup BUT, you can't do this deal if you are responsible for all of the tax issues. I mean if you cash for a few hundred then it doesn't matter, but if you cashfor over $5K (it used to be anything over $600) then you get aW2G and you are responsible for paying tax on all of the winnings, which means that you will basically get nothing. You have to tell your backers that you will be reporting only your actual winnings to the IRS and it is their responsibility the either report their winnings.

    this
  5. ImaBustYou ImaBustYou is offline

    Milwaukee, WI
    United States

    Posts: 1,794
    Joined: Sep 07

    Oct 7th, 2009 (10/7/2009 7:44pm) in reply to doomed222

    Last year I cashed in a tournament for $8k. I still got $800 in taxes back! I do have a job, but only made like $5.8k last year in working wages. I did report my winnings, too. So in my state (WI), I don't really know how it works.

    Also, is there a difference if the casino pays out in casino chips?
  6. IBGrindin IBGrindin is offline

    Columbus, OH
    United States

    Posts: 3,408
    Joined: Jul 05

    Oct 7th, 2009 (10/7/2009 7:47pm) in reply to ImaBustYou

    why would they back anyone if they own a casino?
     
  7. jsagan77 jsagan77 is offline

    Honolulu, HI
    United States

    Posts: 759
    Joined: Aug 08

    Oct 7th, 2009 (10/7/2009 7:50pm) in reply to Slingtownorbust

    Yeah, do all this AFTER taxes...
  8. fenominal fenominal is offline

    Orangevale, CA
    United States

    Posts: 113
    Joined: Sep 06

    Oct 7th, 2009 (10/7/2009 7:54pm) in reply to CalBandGreat

    OK, a few other things. The 5 events are $340 events each and dont figure to be big turn-outs. Maybe the top two would be the only ones to cash for over 5k if that. Lets assume I did cash for over 5k plus entries in one or more of the tournaments.
    The backers may not be present at the tournaments. How do I then go about cashing out my share and handle W2 forms. Would I then need them both to come to the tournament venue and sign for their share of money and fill out tax papers too? This could be a bitch for two successful business men.
    Thread Starter
  9. fenominal fenominal is offline

    Orangevale, CA
    United States

    Posts: 113
    Joined: Sep 06

    Oct 7th, 2009 (10/7/2009 7:59pm) in reply to IBGrindin

     
    Originally Posted by IBGrindin View Post

    why would they back anyone if they own a casino?

    It is a small casino that opened about a year ago, and these two guys, who are partners in business apparently have a lot of dough. They aren't much for playing poker themselves though. Oh and they think I'm real good. LOL.
    Thread Starter
Reply to Thread