Canadian Taxes

[ahnuld]

Anyone know what the deal is for paying taxes on poker winnings. Make over 10k this year but I have no idea what im supposed to declare or if I have to declare.

As far as I know, there is no tax on gambling winnings. I'm 90% sure.

[stevepa]

That's not entirely true. Lottery winnings are not taxable. Winnings from games of chance are not taxable. Here's a case involving a guy who derived substantial income from poker: Case (http://www.canlii.org/ca/cas/tcc/2003/2003tcc707.html)

It's ridiculously long, so here's a summary written by FellKnight (this is all from RGP):

"Okay, so from reading this, If your play poker professionally, your winnings ARE taxed. The following criteria are used to determine professionalism:

a) He carefully managed the risks.

b) He was a skilled player.

c) He played Monday through to Friday each week.

d) He spent his afternoons playing (game) to perfect his skills.

e) He played inebriated opponents after 11:00 p.m. to minimize his risk.

f) He won most of the time earning, approximately $200.00 daily.

g) He drank alcoholic beverages only on weekends when not playing (game) to give him a sober advantage over his inebriated opponents.

h) He was calculating and disciplined.

i) It was his primary source of income and he relied on this steady income.

Most or all of these conditions must be satisfied for someone to be a professional gambler and declare winnings to the CCRA."

Hope this helps,

Steve

[ahnuld]

Thanks Steve, this did help. Im a college student and since I had a normal job this summer as well as only playing poker for a few months a year, it seems from yuor post, that I would not be considered a pro player and therefore do not have to pay taxes on my lucky winnings. YEHAW!

[cassette]

It's a lot more complicated than this. Read this thread closely: Canadian Taxes (http://forumserver.twoplustwo.com/showflat.php?Cat=&Number=1095183&page=&view=&sb=5& o=&fpart=1&vc=1)

You should also speak to a professional.

[Allinlife]

in the very end of that thread, it basically says there are now laws that state you have to pay taxes on poker winnings as of now in Canada, though it might soon change...