Poker Tax Question

[WebGuySteve]

I know this has been discussed before, but, I can not find anything useful using the search function (surprise, surprise) I come to you guys since the STT forum was no help and told me to come here /images/graemlins/laugh.gif

I have started earning enough money to start claiming income for taxes for 2005. I plan to do this right, or at least more or less right. I have tried to talk to accountants, but they kind of just agree with me, and offer no real advice. What do you guys do, and how is it done?

I have heard that you file as a small business and pay roughly 30%. If I do this, but claim say, 75% of my income, or 50%, what risk, and penalties are there for doing such?

Thanks for any help you guys can give, and feel free to flame away as I know this can get very subjective /images/graemlins/frown.gif

[blackize]

Huge fines and imprisonment are the penalties. How long the imprisonment is I cant tell you, but expect it to be at least 2 years.

[WebGuySteve]

Yeah, I kinda figured, I was more interested in the right way to do things. Not really sure why I threw in the 50% 75% thing.

[Cactus Cactus]

about claiming- can you claim 75% of your income and say you lost money playing at the casino (poker or blackjack)

How could they trace that

[WebGuySteve]

This is true, but, wouldn't they just see how much is in my bank account, and then I would have no way of showing where this money came from? I think I have come to the conclusion it's best just to file properly, thanks for the reply though!

[pokerlaw]

[ QUOTE ]
I have heard that you file as a small business and pay roughly 30%.

[/ QUOTE ]

the actual rate that you pay is determined by your TAXABLE INCOME for the calendar year (Jan 1 - Dec 31). The amount you pay during the year is an estimate of what you think you will make (do a projection and determine your taxable rate and therefore level of tax and tax owed). If you are under $15,000 or so, the rate is around 10%. If you are at $100,000, you go to 34% or so.


[ QUOTE ]
If I do this, but claim say, 75% of my income, or 50%, what risk, and penalties are there for doing such?

[/ QUOTE ]

Again, this largely depends on how much income you are projecting and what you filed in the prior year - as those are the two main benchmarks for determining penalties and what levels to maintain. They aren't that harsh unless you show fraud/mal intent or something like that.

[Cactus Cactus]

about paying taxes...I've come to known some people in canada, argentina, england and I have noticed that they dont have to pay taxes on gambling earnings. Are we the only country that does have to pay taxes on earnings?

[WebGuySteve]

Yeah, I actually live 10 minutes from canada...go figure, eh?

[WebGuySteve]

Thank you very much for your reply, it was very helpful. I feel much more confident in my local accountant now /images/graemlins/smile.gif

[Cactus Cactus]

i live about 20 minutes...buffalo NY where do you live at

[WebGuySteve]

whoa...Buffalo, NY haha, I am in south buffalo, near west seneca

[Jeffage]

Get an accountant. You will have to pay quarterly estimated taxes to avoid a penalty on April 15.

Jeff

[WebGuySteve]

Thanks Jeff, That is what I am working on now...the estimated quarterly taxes, kinda rough when the first quarter was for bankroll building!

[Overdrive]

[ QUOTE ]
about paying taxes...I've come to known some people in canada, argentina, england and I have noticed that they dont have to pay taxes on gambling earnings. Are we the only country that does have to pay taxes on earnings?

[/ QUOTE ]

The United States is one of the few countries that taxes gambling winnings. You can thank the religious puritans for that.

[smb394]

[ QUOTE ]
[ QUOTE ]
about paying taxes...I've come to known some people in canada, argentina, england and I have noticed that they dont have to pay taxes on gambling earnings. Are we the only country that does have to pay taxes on earnings?

[/ QUOTE ]

The United States is one of the few countries that taxes gambling winnings. You can thank the religious puritans for that.

[/ QUOTE ]

Or the tax and spend left. The religious puritans probably don't want you to play at all! /images/graemlins/mad.gif

[Cactus Cactus]

hey are you on pokerroom and play 100-200 (well usually whatever it the highest) and seem to check raise on nothing all the time??

[Jeffage]

Sure, that's me /images/graemlins/cool.gif. BTW, do you play in that game or are you another armchair quarterback? Typically that game is heads-up or 3-handed. I'm guessing you don't much understand the style of play at this level or in shorthanded games....I've beaten that site for a tidy sum over the years. I don't remember ever making a statement on this board or anywhere else that I'm one of the world's best players.

Jeff

[Cactus Cactus]

Oh...with that comment about check raising on nothing, I didn't mean anything bad about it. In fact I remember I was playing with you in a 25-50 4 person table with you, and I kept folding to your constant check raises (when I probably had the best hand) that is how I remember you. In fact I have tried your concept out and am learning to use it in the mix...however i've realized that if you aren't up against a person who will routinely call the raise and fold on the turn it seems to be a waste.

- but as for 100-200 i'm an armchair, I've only played in there once right now that is too high for me I'm usually at 25-50

- but if you wouldn't mind could you explain that check raise on nothing concept. What times should you do it (what type of board) when shouldn't you? What are some other implications?

TY

[Jeffage]

Ok, sorry for the misunderstanding then. Your question is a good one, but it's very broad. Alot depends on your opponent, the texture of the board, what your opponent might think you have, whether he would ever lay down a decent hand or ace hi heads up, whether your raise will come off like a move or not, whether you have outs, how your opponent perceives you. Also, how many players in the game, how the game is playing, I could go for awhile.

Jeff

[Cactus Cactus]

would you say that sansone is the expect on that move??