Internet poker and taxes and moving abroad.
 

I know this has been covered and I've read the posts, but I have some rather detailed questions and would like to engage in a discussion so I'm starting a new thread.

I am a successful online poker player. I multitable like a madman and play limits where that can pay off without much risk. I am on target to net around 200-300k / year assuming I maintain my work ethic and assuming I haven't been getting incredibly lucky the last few months (let's assume I haven't been). I am pretty familiar with U.S. gambling tax laws. My understanding is to be completely legal, you need to add/subtract losses for every *session*, which in live poker means everytime you take your chips off a table. In online poker this would be almost impossible to keep track of, and since the laws are unclear about the legality of online poker to begin with it's led me to contemplate moving abroad. I know many of you will say "just don't pay the taxes" but I think thats far too risky. The sites can't be compelled by the IRS to give up your histories with them, but I'm not convinced the IRS can't compel YOU to request the histories in case of an audit.

Has anyone here moved abroad for this reason? I'm kind of a loser so this is much more of an option for me that most of you. Again, given our ridiculous tax laws I would have to pay American taxes abroad as well (at a lesser rate I beleive)so I'm even considering giving up my citizenship (yes I'm that much of a loser). A half million untaxed in the next 9-12 months in a country with a standard of living half of the United States would be quite an improvement for me. I haven't done this yet so please don't call me an idiot, I'm looking for information.

Re: Internet poker and taxes and moving abroad.
 

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I haven't done this yet so please don't call me an idiot, I'm looking for information.

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I don't think anyone would think you're an idiot for considering this. I've considered it and I don't win anywhere remotely close to what you're on par to earn.

It'll be nice to see some input from people who have done this. Is there any particular regions you're considering moving to?

Re: Internet poker and taxes and moving abroad.
 

Costa Rica, Latvia, Czech Republic are some places I've looked at a bit. The country will obviously have to have a good internet connection and I don't really want to be kidnapped soon after my arrival so they have to be relatively well off. The Carribean is an option also, but all this is just preliminary until I get more information. Language is of course another issue.

Re: Internet poker and taxes and moving abroad.
 

What about Canada, don't they have lax gambling taxes?

Re: Internet poker and taxes and moving abroad.
 

I don't know much about Canada but a country where everything is cheap would be a big plus. But I'm certainly open to it, if in fact none of my income would be taxed it'd prolly jump high on the list.

Another issue that I didn't mention is citizenship requirements, or green cards or whatever. I know some countries like Panama you can buy citizenship for $50k, but i'm not sure if you can just remain stateless or not.

Re: Internet poker and taxes and moving abroad.
 

play limits where that can pay off without much risk

mind if i ask what game you play? not looking for a site or other details, just the game.

Has anyone here moved abroad for this reason?

probably crazy to do it only for this. as you stated, you know you have to renounce or change citizenship to avoid the liability anyway. so why not look into dual citizenship? you are suggesting you are very mobile and are doing this for the short term gain of the difference in the income tax. you also seem determined so i will pass on the "be a good citizen and pay your taxes" lecture. i know that dual citizenship is an option in canada, and much of the carribean and CA.

if i were determined to do what you want to do, i would probably explore if a place like costa rica offers dual citizenship, then check the irs laws regarding income made from your new residence. if you happen to get an answer on tax liability for dual citizens, please post the info here.

Re: Internet poker and taxes and moving abroad.
 

Is there a way to do this without marriage? I will assume he will breaking the law of that country if he just does it for that reason. No that he will get caught, just the principle.

Re: Internet poker and taxes and moving abroad.
 

Is there a way to do this without marriage?

i have friends that have dual canada/us citizenship. they went there to work, and loved it. they did not want to renounce, so they got dual.

also, many property owners in hollywood florida are canadians that have dual. there are many ways to get it that would seem to the irs as innocent. as far as costa rica, i would buy a condo with 2% down if i needed a reason to apply for dual. i would live there 6 months a year and sell it when the poker party was over.

edit: my friends that did this in canada went first as a visitor, then applied within a month for a work visa then did what they needed to for the dbl. citizenship.

Re: Internet poker and taxes and moving abroad.
 

Are you saying you can get a DC with a work visa in 6 months? I imagine you mean Costa Rica. I doubt in Canada you get one so fast, do you know?

JAque

Re: Internet poker and taxes and moving abroad.
 

[ QUOTE ]
I know this has been covered and I've read the posts, but I have some rather detailed questions and would like to engage in a discussion so I'm starting a new thread.

I am a successful online poker player. I multitable like a madman and play limits where that can pay off without much risk. I am on target to net around 200-300k / year assuming I maintain my work ethic and assuming I haven't been getting incredibly lucky the last few months (let's assume I haven't been). I am pretty familiar with U.S. gambling tax laws. My understanding is to be completely legal, you need to add/subtract losses for every *session*, which in live poker means everytime you take your chips off a table. In online poker this would be almost impossible to keep track of, and since the laws are unclear about the legality of online poker to begin with it's led me to contemplate moving abroad. I know many of you will say "just don't pay the taxes" but I think thats far too risky. The sites can't be compelled by the IRS to give up your histories with them, but I'm not convinced the IRS can't compel YOU to request the histories in case of an audit.

Has anyone here moved abroad for this reason? I'm kind of a loser so this is much more of an option for me that most of you. Again, given our ridiculous tax laws I would have to pay American taxes abroad as well (at a lesser rate I beleive)so I'm even considering giving up my citizenship (yes I'm that much of a loser). A half million untaxed in the next 9-12 months in a country with a standard of living half of the United States would be quite an improvement for me. I haven't done this yet so please don't call me an idiot, I'm looking for information.


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Please leave.

Enjoy the abundance of smelly people and bad water!