Looking for a CPA who understands Gambling Taxes

[KaneKungFu123]

I am looking for someone to help with filing my taxes and maybe some other stuff.

If there anyway to file as a Professional Gambler and not pay SE Tax? What are the tax advantages of starting a corporation? Can I start a corporation as a Professional Gambler?

Give me information on the different retirement plans one can invest in with tax benefits...

I am overseas and was planning to take the foriegn earned income exclusion and i am curious if I can still take advantages of these retirement plans.

Thanks.

[KaneKungFu123]

More questions: If I start taking care of my parents, and neither of them is employed, can I start claiming them as dependents. They do not recieve any pensions or SS yet.

I will add my name to their mortgage also if that is nessecary.

[Vincent Lepore]

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I am overseas and was planning to take the foriegn earned income exclusion

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The exclusion does not apply to gambling winnings.

Vince

[Vincent Lepore]

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If I start taking care of my parents, and neither of them is employed, can I start claiming them as dependents.

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If you provide more than half of their support you can claim them as dependents.
Vince

[ChrisMonkeymaker]

If the pokersites are willing to open accounts by a corporation, I can't see why you wouldn't be able to play poker as a corporation. I'm curious if anyone has done this: Open a neteller account as a corporation (drawing money from a corporate bank account) and then deposit money into a site as a corporation.

If you indeed can play as a corporation, the corporation will pay half the self-employment (7%) and can deduct it as an expense. This is a good advantage. Also, a corporation is still in the 15% tax bracket if it has income of 50k while an individual would be at 28% at that point.

[KaneKungFu123]

[ QUOTE ]
If the pokersites are willing to open accounts by a corporation, I can't see why you wouldn't be able to play poker as a corporation. I'm curious if anyone has done this: Open a neteller account as a corporation (drawing money from a corporate bank account) and then deposit money into a site as a corporation.

If you indeed can play as a corporation, the corporation will pay half the self-employment (7%) and can deduct it as an expense. This is a good advantage. Also, a corporation is still in the 15% tax bracket if it has income of 50k while an individual would be at 28% at that point.


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So over 50K in earnings is taxes at 15% tax rate plus 7% SE tax, that is also deductible?

[KaneKungFu123]

can one person own a corporation?

[astroglide]

the corporation idea has been "discovered" in almost every tax thread i've ever read on 2+2.

it's been thoroughly researched by www.rbstaxes.com (http://www.rbstaxes.com) and they concluded that there is no legal way to benefit from it. i trust them a lot more than the "hey what if..." people.

[KaneKungFu123]

[ QUOTE ]
the corporation idea has been "discovered" in almost every tax thread i've ever read on 2+2.

it's been thoroughly researched by www.rbstaxes.com (http://www.rbstaxes.com) and they concluded that there is no legal way to benefit from it. i trust them a lot more than the "hey what if..." people.

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i have viewed this site before, but cant find where they shoot down the corporation idea.

[astroglide]

it's in the guide they sell

[KaneKungFu123]

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it's in the guide they sell

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do you own that guide? is it up to date? it looks like it was printed in the 70's. Hahahaha.

[fsuplayer]

why not just file it under gambling winnings, (not as a professional) and avoid the SE tax?

you cant deduct most things, but with the money you save not paying the SE tax, who cares?

[DcifrThs]

Roger from RBS is an expert in this area.

contact him through RBStax services. he's my accountant and id recommend him.

Barron

[amulet]

there is a tax lawyer in los angeles who represents several big time players, and used to or still represents the bike. i use him often, and always report my poker income. sidney machtinger, 310-201-7441, smachtinger@ggfirm. the firm has over 100 lawyers, and he is one of the names on the letterhead.

[ChrisMonkeymaker]

I believe that in Nevada you can. I don't know about other states. There is also no corporate tax in Nevada.

[ChrisMonkeymaker]

For indiviuals, I believe the marginal tax rate is 15% for the first 40k or so. Then any earnings above that the tax rate is 28%. If it is a corporation, the tax rate is 15% for the first 50k or so. Then it becomes 28% for any income above that.

So if you play as a corporation and make 90k, you can retain 50k as earnings for the corporation and pay yourself 40k in salary. You'll end up only paying 15% for the entire 90k. If on the other hand you do it as an individual, you'll owe 15% for the first 40k or so (after exemptions) but pay 28% on any income above that.

There will be no self-employment if you have a corporation. However, you have to personally contribute 7% for SS and medicare like all employees do (this is taken from the salary that you earn from the corporation). And the corporation pays 7% for you like all employers do. The advantage is that this 7% becomes a deductible business expense from the point of view of the corporation and will therefore lower the taxable income. We're talking C corporation not S corporation.

This would all be useless if you can't play poker as a corporation. Astroglide hasn't given any specific info about corporations for poker playing in his link.