#31
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Re: SNG tax question
If you use Poker Tracker you can essentially get a breakdown by SNG of your entry fee and winnings which I would assume provide enough documentation for the IRS as it is date & time specific.
RichP |
#32
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Re: SNG tax question
Does everyone here plan to report any income from gambling? I have a day job and don't plan to. The sites don't send W9s, right?
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#33
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Re: SNG tax question
How do you intend to report rake back?
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#34
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Re: SNG tax question
[ QUOTE ]
How do you intend to report rake back? [/ QUOTE ] I consider rake back and bonus dollars as winnings. I'd feel hard pressed to try and explain it any other way if audited. |
#35
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Re: SNG tax question
Another interesting current thread in the zoo.
http://forumserver.twoplustwo.com/sh...t=all&vc=1 |
#36
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Re: SNG tax question
I did not have a large amount of winnings in 2004 as I was just starting and larning, so this year I will not report winnings on my return. However, I am expecting (hoping) to have much larger net winnings this year and will report them.
With the IRS it is always best to err on the side of caution. If you earn more than a few thousand in a year, I would highly recommend reporting it. Think of it as getting a job that pays under the table. If its a minimal amount, the IRS probably won't care enough to flag you, but if your making a decent amount there is a chance you could get audited. I would gladly pay a percentage of my winnings rather than take the chance of getting the rectal exam that is an audit. The key is finding out how to legally pay as little as possible. And remember, the IRS has access to a lot more information than you are aware of. If you like to spend money and buy a bunch of nice things after making 20-30k in a year of poker, they are going to wonder where that extra money came from and you could get flagged. |
#37
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Re: SNG tax question
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#38
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Re: SNG tax question
I am pasting the following from a post in the zoo, who's handle is CPA. Which is his profession, BTW.
Below is a list of factors (Profit Motive factors determining if you have a trade or business) that the IRS may consider. No one factor is more important than another. And if you fail one factor, that doesn't mean you are not a professional. Like so many other areas of tax law, this is gray and debatable. That is why the determination is up to you and your tax accountant. The factors that indicate the likelihood of a profit motive. Words like "large" and "substantial" are relative: • abandoning activity when inability to generate profit ascertained; • annual increases in net income from activity; • devoting effort to the activity; • devoting significant amounts of time to the activity; • devoting substantial money to the activity; • exercising care in carrying on the activity; • expectation of large profits if activity successful; • generation of profits; • having or developing expertise with respect to the activity; • investigating the profit potential of the activity; • maintaining detailed records; • operating the activity in a businesslike manner; • previous profitable operation of similar activity; • relative significance of the expected amount of profits when compared to other sources not generating substantial income; |
#39
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Re: SNG tax question
[ QUOTE ]
Has anyone read this? http://www.gamblingtaxguide.com/ [/ QUOTE ] I have it. Lots of good info in it. |
#40
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Re: SNG tax question
sofere -
I think i made ~$3-4K in 2005 playing poker online. I prolly lost somewhere about half that much in other live casino games. In 05, I made much more than that through work (mostly options). It wouldn't affect my lifestyle in anyway. I guess the big quesiton for me is if Party/UB/Stars report player winnings to the IRS like B&M casinos do. Anyone know that??? |
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