Poker Discussion
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CarbonPoker · Full Tilt · Cake Poker · PokerStars · Ultimate Bet · Players Only · Bodog
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TAXES
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kiro15
(United States)
133
Posts.
Joined
12-23-2005.
10-08-2008 12:36 AM
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I know this has been beaten to death and i know there is a link on this site but i still cannot find a specific answer. Say i buy in into a tourney for 10 dollars and cash for 100, i know i have to report the 100 as income. but can i use 10 buyin as a loss of it itemize? or can you only deduct buy-ins as losses in which you didint cash?
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so what if you have a backer? wouldn't you basically have to go back to what some people are saying and just go by what you cash out? can you file as a professional gambler AND have another job? so young, so confused
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 lockdownpokah: | |
so what if you have a backer? wouldn't you basically have to go back to what some people are saying and just go by what you cash out? can you file as a professional gambler AND have another job? so young, so confused
If you filed as a pro your winnings would be listed on Sched. C as gross earnings and your makeup and percentages given back to the backers would be deductible expenses.
If you don't file pro, you would likely deduct that portion that you had to pay backers from the amount of winnings, BUT you would also report to the IRS the amounts you paid and who you paid it to. In normal business it would be done on a 1099 misc. income statement, for gambling, I don't know the correct form but there is one.
If you are being backed, you and the backers are likely pros and you both need a CPA. If someone just backed you for a few games, don't worry about it unless you win a major score. (nobody reports going to the casino and winning $200 on the craps table)
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| r1tony: | |
Why would I pay taxes if I never gave the sites I play on a social security number?!
how do you cash out?
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| Duffy08: | |
| BerkeleyBoss: | |
its pretty rediculous to itemize each and every tournament you cash in....just pay taxes on whatever you cash out
thissssssssss everyone that disects everything baffles me as long as the government is getting a chunk of what's flowing into ur bank accounts/u are spending and have records of you paying taxes...I really don't think they care
well, the reason people dissect everything is in case they get audited and need to show documentation of the income they claimed. large transfers and gross increases from one year to the next will increase your chances of being audited.
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| bassmaster: | |
| r1tony: | |
Why would I pay taxes if I never gave the sites I play on a social security number?!
how do you cash out?
I am assuming he doesn't.
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Just come to France, every income from gambling games are completely tax free, you can cash several millions declare them and will not have to pay a single cent in taxe ;-)
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Duffy how can you not file as a pro? Do you have another source of income that exceeds your poker winnings in terms of money you live off of? I was just at my CPA's office the other day and one of the things he told me to do was to file quarterly and use tax time (April) as a time to "balance the books" instead of just shipping them one massive lump sum then.
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But I'd have to live in France...
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The initial advice in this thread was really bad, but by page two, it started to get more accurate. How the IRS wants it reported and what seems right or makes sense are two totally different issues.
All tournament winnings add up towards your gross income. If you entered into a 100 dollar tourney and won 110, guess what? Your gross income just went up 110.00. And this can definitely impact your taxes. An exception to this is live events at casinos in which they issue a tax form (can't remember the number) for which they report your winnings. You can then just use this number towards your gross income, as they have already subtracted the entry fee. Cash games must be tracked as sessions, which you can obtain from the sites. All the winning sessions go towards gross income. This "gambling" income is listed under other income. If you don't think this is a big deal, my gross income was impacted 250K last year.
All tourney fees, losing cash sessions and other gambling losses are listed as expenses. They do impact your net income, unfortunately, not your gross. If you are a recreational player, you CAN deduct these losses. Only professional players can deduct expenses.
Also, income earned is income earned. It doesn't matter if it is sitting on a site or not. So just because you didn't withdraw it, doesn't mean you didn't make it.
Last year, I used Site records, OPR and Pokerdb and my accountant was more than satisfied with the results. Keep in mind, most of your winnings are public record.
I am not a CPA, and this may not be the most accurate, but it is pretty close.
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| bassmaster: | |
| r1tony: | |
Why would I pay taxes if I never gave the sites I play on a social security number?!
how do you cash out?
Full Tilt never asked me for a social. I withdrawl at least once a month.
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| bassmaster: | |
| r1tony: | |
Why would I pay taxes if I never gave the sites I play on a social security number?!
how do you cash out?
Umm ya I do.. and check.
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| dills2214: | |
| holdplz: | |
if you dont file as a professional gambler, you cannot deduct losses
This is NOT true. (as far as I am aware) You don't have to pay taxes on all your earnings, regardless of how you got them. You can reduce the amount of money the IRS will tax by reporting your losses as part of your overall itemized deductions. Check out line 28, Other Miscellaneous Deductions, on Schedule A. That's where you report any gambling losses. You can claim up to the total amount of winnings you entered on your 1040, effectively wiping out any taxable gambling income. If you do not file as a professional gambler, you are unable to claim travel/lodge/food etc as deductions however.
This is 100% correct
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is there a self-employment tax?
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