LImitPlayer
08-24-2005, 11:58 AM
I went to 2 accountants this week and both pretty much said the same thing.
It's still a grey area and it depends on how comfortable you want to sleep at night.
Any money made from poker as your sole source of income Revenue Canada will want a piece of especially if it is significant. This does not mean they will get a piece of it as Revenue Canada has gone to court before and has lost. (not poker related)
If you are making 6 figures year after year from poker as your only income they will come after what they think is their share if they find out.
This however does not neccesarily mean they will win in court since the tax laws have been written as vaguely as possible. An arguement can be made from both sides
If they do win, it can then be argued that the profits are capital gains and not income from a business and thereore you only have to pay tax on 50% of your winnings.
Same thing goes for the recreational poker player (or gambler) If you play twice a year and make a couple thousand dollars Revenue Canada could hypothetically come after you but Revenue Canada isn't going to care about it because the amount is so small.
However if you are employed in a part time or full time job and play poker or gamble as a hobby, Revenue Canada will come after you if the amount is anyhing significant as they will want want they percieve to be their fair share.
The question is, what is a significant amount to Revenue Canada?
One accountant guessed probably 10K and up, the other accountant said 10-20K but both said they couldn't say for sure.
I also inquired if it was viable if I went on a family members business payroll as a full time employee(but actually not working there) paid taxes on that, claim poker was my hobby and since I was employed full time would that make my poker winnings excempt from taxes.
The answer was the same, Revenue Canada will come after me if it is anything significant, but they may not win. If they do win an argurement can be made for not having to pay the penalties and interst but then I would have also paid the tax on the fake job as well as the tax on poker.
So it all comes down to 1) Revenue Canada 1st finding out, 2nd) how comfortable I want to be able to sleep at night sleep at night.
Which leads me to my next question: Are offshore bank accounts viable?
I have a meeting with a finanical planner on Friday and I will find out, in the meantime anyone else know anything about them?
Are there minimum deposits, balnces etc? How secure are they?
It's still a grey area and it depends on how comfortable you want to sleep at night.
Any money made from poker as your sole source of income Revenue Canada will want a piece of especially if it is significant. This does not mean they will get a piece of it as Revenue Canada has gone to court before and has lost. (not poker related)
If you are making 6 figures year after year from poker as your only income they will come after what they think is their share if they find out.
This however does not neccesarily mean they will win in court since the tax laws have been written as vaguely as possible. An arguement can be made from both sides
If they do win, it can then be argued that the profits are capital gains and not income from a business and thereore you only have to pay tax on 50% of your winnings.
Same thing goes for the recreational poker player (or gambler) If you play twice a year and make a couple thousand dollars Revenue Canada could hypothetically come after you but Revenue Canada isn't going to care about it because the amount is so small.
However if you are employed in a part time or full time job and play poker or gamble as a hobby, Revenue Canada will come after you if the amount is anyhing significant as they will want want they percieve to be their fair share.
The question is, what is a significant amount to Revenue Canada?
One accountant guessed probably 10K and up, the other accountant said 10-20K but both said they couldn't say for sure.
I also inquired if it was viable if I went on a family members business payroll as a full time employee(but actually not working there) paid taxes on that, claim poker was my hobby and since I was employed full time would that make my poker winnings excempt from taxes.
The answer was the same, Revenue Canada will come after me if it is anything significant, but they may not win. If they do win an argurement can be made for not having to pay the penalties and interst but then I would have also paid the tax on the fake job as well as the tax on poker.
So it all comes down to 1) Revenue Canada 1st finding out, 2nd) how comfortable I want to be able to sleep at night sleep at night.
Which leads me to my next question: Are offshore bank accounts viable?
I have a meeting with a finanical planner on Friday and I will find out, in the meantime anyone else know anything about them?
Are there minimum deposits, balnces etc? How secure are they?