Does this not annoy anyone?

[jimdmcevoy]

Tax. On poker winnings.

Take the WSOP main event. A rough guess is that about 20% of the prize pool will end up going to the tax man. I'm too lazy to work out the exact percentage, but it's probably in the neighborhood.

So put another way, you are basically playing a $8000+$2300 event, since only about $8000 of each buyin will make it's way into another players pocket, after tax.

[alittle]

Yeah, but you can deduct your loss (buy-in) from your other winnings.

What? No winnings? Sorry then.

[Johnny5]

I'm Canadian, and while we have a fair (read: ridiculously high) amount of taxes, I still find it crazy that in the U.S. you have to pay taxes on lottery/gambling winnings!

Talk about double taxation! Everybody buys-in with after-tax dollars, and if you win, they tax winnings that have already been taxed!

Definitely annoys me...
J5

[Rushmore]

[ QUOTE ]
Tax. On poker winnings.

Take the WSOP main event. A rough guess is that about 20% of the prize pool will end up going to the tax man. I'm too lazy to work out the exact percentage, but it's probably in the neighborhood.

So put another way, you are basically playing a $8000+$2300 event, since only about $8000 of each buyin will make it's way into another players pocket, after tax.

[/ QUOTE ]

This is all true, and all annoying.

Remember, though: done properly, you have ways to reduce your liability. Obviously, deducting losses (as cost of business) is permissible, but there's more, when all is said and done.

If you play poker professionally, there is room for argument on each of the following expenses:

--Tourney fees
--Computer equipment, connection, etc.
--Travel fees
--Some meals
--etc.

So, then, just like a business, obviously.

Note that I said "room for argument," and not "carved in stone."

[jimdmcevoy]

I'm Australian and we also have a fair (also ridiculously high) amount of taxes, and also no tax on gambling winnings.

Acutally a thought just came to mind, do those who play poker on the net have to pay tax? I am assuming they do.

But what about me? I am a dual citizen, Australian/American, so when I play online I don't have to pay American tax, since I am not living in America?

So I get to pay Australian tax (which is zero)?

What if an American became a Canadian resident? Legit tax-dodge?

And one last question in the off chance some one will actually answer any of these, when I go to America, and I win the main event (no laughing please) do I have to pay American tax? Do all foreigners get taxed on gambling wins when vacationing in the states?

[jimdmcevoy]

Yeah I agree that if your a pro you can probably write off a lot of stuff, but in my mind it's only the pro's who should be getting taxed in the first place.

The way I see it is that every pro is like a walking talking one man mini-casino, that needs a host larger casino within which to operate.

Just as with a casino you can win money off this guy, but when you gamble with him you are making negative EV bets, well most of the time anyway.

So if casino's get taxed, these guys should to. Of course this would be impossible to enforce, but that's my philosophy.

[37offsuit]

I'm thankful for not having bullets fly past my window, bombs blowing up in the streets, a paved road to drive my rediculously featured car, food and water that is safe to eat, schools to educate my family and friends, TV to watch, and yes, even poker to play.

Take away our overbearing taxation and I think that playing poker and worrying about how much of your winnings may have to go towards not living in constant fear and uncomfort will be the last thing on your mind.

[Johnny5]

Don't forget about the internet forums to post nonsense that has no relevance to the thread!

[ QUOTE ]
Take away our overbearing taxation

[/ QUOTE ]
Please do!

J5

[jimdmcevoy]

[ QUOTE ]

I'm thankful for not having bullets fly past my window, bombs blowing up in the streets, a paved road to drive my rediculously featured car, food and water that is safe to eat, schools to educate my family and friends, TV to watch, and yes, even poker to play.


[/ QUOTE ]

I'm not sure what you are implying here, that the American government needs tax money?

If that's what you're saying, then I agree, a government does cost money to run, but I'd prefer the tax come in other forms.

But if you're trying to tell a Canadian or an Australian that Americans have a better way of doing things, well this is not the appropriate place to open up that can of worms.

[hockey1]

[ QUOTE ]
If that's what you're saying, then I agree, a government does cost money to run, but I'd prefer the tax come in other forms.


[/ QUOTE ]

Of the various sources of tax revenue, poker winnings is probably about the least objectionable. Maybe right after tobacco.

I don't mean this to be as offensive as it may sound, but have you ever received a paycheck? Try working your ass off every week and then watching the government suck 30-40% off the top.

[Johnny5]

[ QUOTE ]
Of the various sources of tax revenue, poker winnings is probably about the least objectionable. Maybe right after tobacco.

[/ QUOTE ]
You're obviously not a smoker, or professional poker player! /images/graemlins/wink.gif

[ QUOTE ]

I don't mean this to be as offensive as it may sound, but have you ever received a paycheck? Try working your ass off every week and then watching the government suck 30-40% off the top.

[/ QUOTE ]
More like 40-50% in Canada. And then, when you use your after-income-tax funds to purchase something, you need to pay another 15% in sales tax.

Since this is a poker-forum, I would think that most people who work their "ass off" every day, and want to relax a little by playing poker don't appreciate the tax on their winnings.
J5

[37offsuit]

I'm implying that living in any land, in excess, safety AND comfort, living in a way where you can play games for money, whether that's baseball, football, soccer, golf, bowling or yes, even poker, and then begrudging that you have to contribute to that which provides you this opportunity at all, is absurd.

[PokerMaster]

thats good man, thanx for the advice!!! wow!!!! too much money for uncle sam

[MrDannimal]

This is a pretty silly argument (everybody buys in with after-tax $$). Everything you do with money you earn from work is with after-tax dollars.

Pretty much every transaction is taxed in some way. Sales tax, gas tax, tobacco tax, you name it. Property taxes are paid with money that's already been taxed once, too.

Lottery winnings are taxed, too. Man, that sucks.

[tek]

I'm thankful for Canadian comedians, bacon, beer, caramel and strawberry preserces coming south...It's cold enough in Minnesnowta. /images/graemlins/grin.gif

[jimdmcevoy]

[ QUOTE ]

I don't mean this to be as offensive as it may sound, but have you ever received a paycheck? Try working your ass off every week and then watching the government suck 30-40% off the top.


[/ QUOTE ]

You're quit right, I am a poor college student. The closest thing to a paycheck I get is when I cash out from online poker.

But I don't see how I've lost my right to complain about it. I mean, any money I play poker with will already be taxed.

[rickthekeg]

[ QUOTE ]
Acutally a thought just came to mind, do those who play poker on the net have to pay tax?

[/ QUOTE ]

Since internet transactions are considered interstate commerce (or something like that), I believe internet poker is not taxed. However, since I've never won anything on the internet, I am not sure.

[jstnrgrs]

If you are a winning player then you buy in with pre-tax dollars.