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-   -   Dannenmann interview on espn.com (http://archives2.twoplustwo.com/showthread.php?t=388431)

Gabe DV 11-30-2005 08:03 PM

Re: Dannenmann interview on espn.com
 
Poker winnings are taxed as regular earned income, not as a gambling tax. there is a supreme court case on point--don't remember the name, but it involved Billy Baxter.

PartySNGer 11-30-2005 09:00 PM

Re: Dannenmann interview on espn.com
 
[ QUOTE ]
How much is the government taking in tax??!!? 4.5 million, half, so 2.25 million gets taxed down to 1.3 million?!?!!?!? Is that legal?

[/ QUOTE ]

I'm not sure where you guys learned math, but here's the real math:

Dannenmann won 4.25 million. Half of that is 2.125 million. He took home 1.3 million after taxes. So he paid 2.125-1.3 = 0.825 million in taxes.

825,000 is only 38.8% of 2.125 million. No he did not pay 50% for tax purposes and it's a little disappointing that it's taken this long for this to be corrected.

12-01-2005 11:23 AM

Re: Dannenmann interview on espn.com
 
I just loved Dannenmann's attitude during the entire WSOP. Guys like him are great for poker.

12-01-2005 05:54 PM

Re: Dannenmann interview on espn.com
 
[ QUOTE ]
Poker winnings are taxed as regular earned income, not as a gambling tax. there is a supreme court case on point--don't remember the name, but it involved Billy Baxter.

[/ QUOTE ]

I remember hearing that too. I could be wrong, but I thought he fought the courts and won basically saying that since there was a degree of skill invloved it wouldn't be taxed the same way lottery winnings were.

Miles Ahead 12-01-2005 06:27 PM

Re: Dannenmann interview on espn.com
 
[ QUOTE ]
That's pretty standard for gambling winnings in the US. It's a "luxury tax" at a very high rate.

[/ QUOTE ]

It's not a luxury tax. It's treated as ordinary income, and it bumps him up to the highest tax bracket: 35%.

The state tax bracket (in Maryland) for him is 4.75%.

39.75% of 2.25 million is $894,375, which leaves him with $1,355,625.

12-01-2005 06:29 PM

Re: Dannenmann interview on espn.com
 
I have my income tax book right in front of me.

"Gambling payoffs, no matter how large or small, are taxavle and should be reported on your federal income tax return. This includes the fair market value of noncash prizes such as cars, trips, and dinner coupons. The provision applies to winnings from all sources, from casinos to office pools."

The amount is added into your gross income broadly concieved. You can deduct your gambling losses only to the extent of your gambling winnings. If you are a professional gambler, meaning you derive your income from gambling and have no other job, you may deduct gambling losses beyond the extent of your winnings. Steve Dannenmann is in the highest federal tax bracket so his taxes on his winnings would of been 35% for federal income taxes plus whatever his state income taxes are.

[ QUOTE ]
Can you pay a different amount if you are a professional gambler? Like pay as if you were a business and not a lottery winner?


[/ QUOTE ]

To sum up, no. Your tax rate would be the same as a plumber or a lawyer or anyone else when it comes to personal income. However, the difference is that as a professional gambler you may deduct losses beyond your winnings, so if you have a down year you could take a loss on your business. I am not exactly sure what benefits you would get from doing this though.

I would also imagine as a professional gambler you could write off things like airfare to travel to the casino/tourny/whatever, and all costs associated with gambling online like your internet, computer, etc. However, in order to write off your computer you would have to prove it is used for money making purposes only.

bookie socks 12-02-2005 02:58 PM

Not after the Fairtax Act
 
When we pass the Fairtax Act , there won't be any tax on poker winnings.

http://www.fairtaxvolunteer.org/how_...fx/banner1.gif


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