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Cashout question...

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  1. JamesNguyen JamesNguyen is offline

    Portland, ME
    United States

    Posts: 71
    Joined: Oct 08

    Nov 3rd, 2009 (11/3/2009 2:05pm)

    Well I've recently won 20k and was wondering if there would be any red flags if I were to cashout 5k a week..

    I have no history of large cash deposits no more 1.5k so any advice.

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  2. JamesNguyen JamesNguyen is offline

    Portland, ME
    United States

    Posts: 71
    Joined: Oct 08

    Nov 3rd, 2009 (11/3/2009 2:10pm) in reply to JamesNguyen

    I've read anything over 5k is a red flag so I was thinking of cashing out for a weird amount of like 4875.43 or something..

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  3. GraAlaMat77 GraAlaMat77 is offline

    Aiken, SC
    United States

    Posts: 305
    Joined: Jun 08

    Nov 4th, 2009 (11/4/2009 10:35pm) in reply to JamesNguyen

    Red flag over what??

    You are going to pay taxes, correct? If so, red flag shouldn't bother you
  4. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

    KY
    United States

    Posts: 2,832
    Joined: Nov 07

    Nov 8th, 2009 (11/8/2009 2:44pm) in reply to JamesNguyen

     
    Originally Posted by JamesNguyen View Post

    Well I've recently won 20k and was wondering if there would be any red flags if I were to cashout 5k a week..

    I have no history of large cash deposits no more 1.5k so any advice.

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    If you're simply trying to get your $20K withdrawn, you really can do it all at once. There's no reason to divide it up.

    There can be red flags for CASH transactions that total over $10K but structured such that each individual transaction is below $10K (that is illegal if done for tax avoidance), but for a check or wire there is no such issue.

    If you divide it up because you don't need it all now and wish to have some available to play, that's fine as well.

    Congrats on the win!
     
  5. jbjustblaze2 jbjustblaze2 is offline

    Posts: 5
    Joined: Nov 09

    Nov 9th, 2009 (11/9/2009 10:10am) in reply to TheEngineer

    I am in a similar position, just had my first big month of poker, looking to cash out a bit over 15k. Except I am a student and don't want to pay taxes... I was thinking about taking out five 2.5k in echecks and leaving the rest on to play. Is this going to get me in trouble? I have cashed out 2.5k before with no worries, but never more than once in a month.
  6. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

    KY
    United States

    Posts: 2,832
    Joined: Nov 07

    Nov 9th, 2009 (11/9/2009 8:11pm) in reply to jbjustblaze2

     
    Originally Posted by jbjustblaze2 View Post

    I am in a similar position, just had my first big month of poker, looking to cash out a bit over 15k. Except I am a student and don't want to pay taxes... I was thinking about taking out five 2.5k in echecks and leaving the rest on to play. Is this going to get me in trouble? I have cashed out 2.5k before with no worries, but never more than once in a month.

    I don't think you'll get much help for tax evasion here.
     
  7. WhatsWildAgn WhatsWildAgn is offline

    Henderson, NV
    United States

    Posts: 502
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    Nov 11th, 2009 (11/11/2009 2:29am) in reply to JamesNguyen

    Whatever you do, don't cash out amounts like 4934.67...

    That would be the most conspicuous thing you could possibly do.

    I would say that if you withdraw it from stars or whatever, you need to pay the tax on it. If you don't withdraw it from the stars account you could argue it hasn't really been "made" yet. So I would say if possible withdraw an amount lower than the lowest tax bracket and call that your winnings for this calendar year. then withdraw the rest after January 1st and you will pay the least taxes possible. Like cashing in stocks.
  8. Skallagrim Skallagrim is offline

    Portsmouth, NH
    United States

    Posts: 90
    Joined: May 07

    Nov 12th, 2009 (11/12/2009 10:22pm) in reply to WhatsWildAgn

     
    Originally Posted by WhatsWildAgn View Post

    Whatever you do, don't cash out amounts like 4934.67...

    That would be the most conspicuous thing you could possibly do.

    I would say that if you withdraw it from stars or whatever, you need to pay the tax on it. If you don't withdraw it from the stars account you could argue it hasn't really been "made" yet. So I would say if possible withdraw an amount lower than the lowest tax bracket and call that your winnings for this calendar year. then withdraw the rest after January 1st and you will pay the least taxes possible. Like cashing in stocks.

    Sorry, but this is not correct tax information. The IRS clearly considers the money as yours the moment you have won it, never the moment you withdraw it. To do your taxes accurately you need to keep track of the results of each of your playing "sessions." The total of your winning sessions is income, the total of you losing sessions is an itemized deduction up to the amount of winnings.

    The rules are slightly but significantly different if you file as pro-player; but you should not be doing that without a personal tax adviser.

    Skallagrim
  9. kasilof kasilof is offline

    Northridge, CA
    United States

    Posts: 864
    Joined: Jun 06

    Nov 18th, 2009 (11/18/2009 10:13pm) in reply to JamesNguyen

    I vaguely remember one site or transfer agency if you cashed out over a certain amount they wanted to see 2 forms of id.
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