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Tax Questions

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  1. Colombo18 Colombo18 is offline

    Weymouth, MA
    United States

    Posts: 44
    Joined: May 06

    Jun 6th, 2007 (6/6/2007 11:01pm)

    Move this to a different forum if this is the wrong one.

    Anyway, I have been playing poker now for 3 years, and I've never paid taxes. In 2005/2006 I cashed out 30k (I can find exact total for each year) and in 07 60k.

    Now heres my question. My dad talked to a CPA and the guy said that he wants proof of all my winnings and all of my losses. My dad is under the impression (from his research) that this means that I should have a record of every session I play, which would include about 1,000 sessions per year. This just doesn't seem right to me.

    In my opinion, what needs to be taxed is simply what I've cashed out. I don't see it being any different. I mean, whatever I cash out is my winnings minus my losses (assuming I never lost $ before).

    Another question we pondered was that say a person wins 100k in 2005 but doesn't cash out. Is the government going to want a piece of this? If so, what if he proceeds to lose all of that money in 2006. Does that mean that the government wants him to pay taxes on the 100k even though it never left his poker account?

    In short - I just don't see why you can't say "I cashed out 'x' amount of money, tax it." Please educate me.
  2. sammyg11 sammyg11 is offline

    Berkley, MI
    United States

    Posts: 82
    Joined: Oct 06

    Jun 6th, 2007 (6/6/2007 11:11pm) in reply to Colombo18

    Obv. brag post
  3. DSKekaha DSKekaha is offline

    Puyallup, WA
    United States

    Posts: 583
    Joined: May 07

    Jun 6th, 2007 (6/6/2007 11:19pm) in reply to Colombo18

    Um,
    http://www.pocketfives.com/DD6E4B33-...BE6A8AF8C.aspx ?
  4. Colombo18 Colombo18 is offline

    Weymouth, MA
    United States

    Posts: 44
    Joined: May 06

    Jun 6th, 2007 (6/6/2007 11:23pm) in reply to DSKekaha

    DSKekaha,

    Thanks. Where did you find that?
    Thread Starter
  5. sammyg11 sammyg11 is offline

    Berkley, MI
    United States

    Posts: 82
    Joined: Oct 06

    Jun 6th, 2007 (6/6/2007 11:35pm) in reply to Colombo18

    Its on the left side of the page under the "Content" section just under Strategy Archives.
  6. tkeat1653 tkeat1653 is online now

    Philadelphia, PA
    United States

    Posts: 6,347
    Joined: Jun 06

    Jun 6th, 2007 (6/6/2007 11:50pm) in reply to Colombo18

    I'm a tax accountant so I'll put it as simply as I can:
    Income is income. You are taxed on the money you "earn", regardless of where the money is. Ex: If you have a regular job and throughout the year the money is issued through direct deposit straight to your bank account and you have money at the end of the year that isnt taken out, then what your saying is all that money isn't taxed? The poker money you earn is technically income and therefore per the tax law, you should report it.
  7. irunBAD irunBAD is offline

    Santa Cruz, CA
    United States

    Posts: 411
    Joined: Oct 06

    Jun 6th, 2007 (6/6/2007 11:56pm) in reply to Colombo18

    I'm confused...does this mean you are going to pay taxes on the 05/06 winnings as well, or can you even do that/is it necessary?
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