tax burden of a poker player

need some help with the tax procedures of a full time poker player. Do you use a schedule c and pay self employment tax? I'm not looking for any angles..just the correct filing procedure. thanks in advance.

Honest,


Below is a helpful link.

I think it is better to use a CPA rather than an EA. They have much more education, and can help with investment planning in conjunction with tax preparation. CPA's are also usually more willing to take an aggressive approach when filing returns.


Honest Tax Payer, there is some dispute over the deductability of expenses in relation to earnings from gambling. That's why you need professional help. And it doesn't hurt to keep looking until you find someone who has an outlook you agree with.


At this late date, you might not be able to find anyone good. Just my personal opinion, not professional, if I was filing myself, I would use schedule C and deduct all business related expenses. Just make sure you have good records, and realize that the IRS might disallow these deductions if you are audited.


Good Luck (you'll need it)

HTP,


I'm a CPA, but no expert on taxable gambling winnings and using a Sched C to report them as a business endeavor. But I do have one piece of advice. It may be too late to find that one "just right" tax preparer prior to this April 15th, but that doesn't mean it's hopeless. Go ahead and file the best return that you (or your current preparer) can right now. Then, take the time to find that preparer that you can be comfortable with for the long-term and have them review 2001's return. You have up to three years to file an amended return if it turns out that you paid too much in tax.