Poker Legislation
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CarbonPoker · Full Tilt · Cake Poker · PokerStars · Ultimate Bet · Players Only · Bodog
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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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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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Red flag over what??
You are going to pay taxes, correct? If so, red flag shouldn't bother you
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 JamesNguyen: | |
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.
If you're simply trying to get your $20K withdrawn, you really can do it all at once.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!
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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.
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| jbjustblaze2: | |
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.
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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.
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| WhatsWildAgn: | |
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
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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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