Dumb tax questions.
 

1. Is there any possibility of getting in real trouble if you paid the actual taxes you owed, but were unable to provide all the neccessary tracking info. EX. You really owe XX,XXX.XX and you somehow knew this number without having the required information to prove it. If you paid this number and taxes and got audited: Could you get in trouble for insufficient information? Wouldn't the worst result be them investigating you and proving you're right?

Now follow this up. You paid 27,500 in taxes, but got audited and ended up owing 29,200. Would anything happen other than you paying the difference + interest?

2. Are bonuses/rakeback income, a gift, or your own money?

Re: Dumb tax questions.
 

#1...depends if it's deemed intentional. If it is, trouble. If not, most likely pay back with interest and a stern warning to keep better records/ don't do it again.

#2 This quesation has been debated numerous times. Most of the more intelligent posters, ie those who talked with a personal accountant or accountants themselves, say it is income. So, I include it as income.

Re: Dumb tax questions.
 

rakeback is undoubtedly income, unfortunately

Re: Dumb tax questions.
 

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Could you get in trouble for insufficient information?

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It is your job (according to IRS) to keep detailed records. Talk to a CPA about what type of detail you need.

Re: Dumb tax questions.
 

if you somehow knew how much you owed, i wouldn't see anything too wrong with falsifying the records.

Re: Dumb tax questions.
 

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if you somehow knew how much you owed, i wouldn't see anything too wrong with falsifying the records.

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Ugh.

Not having sufficient records = probably a small problem, assuming good faith by the OP.

Falsifying records = felony tax fraud.

Re: Dumb tax questions.
 

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rakeback is undoubtedly income, unfortunately


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How is rakeback supposed to be reported?

Re: Dumb tax questions.
 

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rakeback is undoubtedly income, unfortunately


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How is rakeback supposed to be reported?

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um...

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rakeback is ... income

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as income?

Re: Dumb tax questions.
 

I think he's asking along the lines of how you report poker winnings in sessions where does rakeback go.

To complicate matters where would bonuses go?

Re: Dumb tax questions.
 

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rakeback is undoubtedly income, unfortunately

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Only if you're a winning player. If you're a losing player, it is simply a partial rebate of fees paid, and is not income.

Re: Dumb tax questions.
 

I record both rakeback & bonuses as seperate "session" income. I don't mix it with session win/losses, as it is rare for me to run one single session and receive a bonus at the end of it... since it is often spreads across multiple sessions, it just makes more sense for me to keep it seperate.

Re: Dumb tax questions.
 

The answer to your first question is that you will pay only the additional tax plus interest and penalties. The amount over the additional tax will be more than you might think since the IRS has an uncanny ability to wait about 2 years before assessing the additional tax. Of course, the interest and penalties are calculated back to when you were supposed to pay that tax. The effect of the wait is usually around 50% of the additional tax. If the additional tax was deemed negligent, the interest and penalties are in excess of 100% of the additional tax.

The answer to your second question is that rakeback/bonus money is income. The amount of bonus or rakeback is contingent upon the amount and/or level that you play at the given site. Therefore, the IRS will look at these payments as gambling source income.

Re: Dumb tax questions.
 

As a professional gambler can someone write off gambling books? Computers/monitors? Gas to casinos? Money spent on food while at casinos?

Re: Dumb tax questions.
 

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rakeback is undoubtedly income, unfortunately

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Only if you're a winning player. If you're a losing player, it is simply a partial rebate of fees paid, and is not income.

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Absurd reasoning.

Re: Dumb tax questions.
 

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As a professional gambler can someone write off gambling books? Computers/monitors? Gas to casinos? Money spent on food while at casinos?

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yes...that is one of the benefits of gaining professional gambler status. As well as 1040schedule C is pretty easy to use.