#41
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Re: When are internet poker earnings taxable income?
Going back to the original question about when income becomes taxable, it may very well be that the time "should" start when you get up from the table, but I often think of it in terms of what the IRS would look at if I ever had to show them documentation.
Therefore, what is in Neteller often wouldn't be counted, instead what my bank records show would. Another words, say I win 500 on Party, transfer to Neteller, transfer 500 to Stars and lose, I would not claim this at all. I'm not saying this is legal, but it makes sense to me. This whole tax mess gives me a headache though, I will admit. |
#42
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Re: When are internet poker earnings taxable income?
What do you do though when they ask you to provide your transactions from Neteller, Party, and Stars though?
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#43
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Re: When are internet poker earnings taxable income?
"If you pay $60 and parlay that into a $25,000 seat at the WPT finals and then lose the first day, it makes a big tax difference whether or not you treat the entry fee as "winnings" or as some type of non-taxable sattelite rollover.
Since winnings are above the line, losses below it and deductions (unfairly) limited, one can lose money on this freeroll come tax time. " I agree this is important, that's why I'm hoping you find your source. I'm pretty sure that what you fear is EXACTLY what happens- your taxes don't break out evenly; you get taxed more on the rise in miscellaneous income than you do on the subsequent deduction for the $25K "loss". I would be surprised if the IRS wouldn't look at the market value (here, full price) of the tourney token, since they tax you on the market value of other gifts that you receive (such as cars, trips) When/if you do find your official source, please PM me with it. The next time I talk to a tax accountant, I'll have to ask that question. |
#44
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Re: When are internet poker earnings taxable income?
Mr. Raymer,
Not to be a smart-allick...but what would you know about taxable earnings...oh...wait...nevermind |
#45
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Re: When are internet poker earnings taxable income?
On review - this wasn't that funny - I apologize for any disrespect taken from my comment.
twomarks |
#46
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Re: When are internet poker earnings taxable income?
[ QUOTE ]
I think the point that you may be missing is that filling by a session by session basis will greatly increase your Gross Adjusted Income. [/ QUOTE ] I'm not missing it, but I am trying to avoid it. [img]/images/graemlins/wink.gif[/img] Fortunately the IRS won't have access to docuementation other than my bank records. I think that will help my case. |
#47
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Re: When are internet poker earnings taxable income?
FWIW, I found it humorous.
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#48
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Re: When are internet poker earnings taxable income?
I see no justification for recording the entry fee as income if you don't have the ability to get cash. The entry has no value if you don't participate in the event. If you are locked into the event (see my previous post on the subject), then you have not finished the earning process of your original entry.
A better example, since there is no cases/laws directly on satellites, would be gift certificates. Gift certificates are not taxable income until redeemed or they expire. In this situation, the satellite would expire with a $60 loss or you would play and have winnings. I can't see how the IRS would ever treat a satellite win as taxable if you can't get cash. I would argue that it is also similar to a parlay in sports and you don't pick up income until all of the events are completed. I would be interested in what another tax accountant thinks about this topic. The ones around this office agree with my theory, but we all think the same on most topics. Maybe if CPA is around these boards he can throw in his opinion as well. |
#49
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Re: When are internet poker earnings taxable income?
If they decide to audit you they will see the various transactions with Neteller and require you to show them your Neteller account. They may or may not then require you to a show them your various accounts on poker sites.
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#50
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Re: When are internet poker earnings taxable income?
I believe you are correct- look for my post to come shortly.
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