Taxes... once again.
 

I have an appointment Monday morning to see a CPA to discuss the issue of paying taxes on my poker winnings. Any suggestions on what questions I should have for my CPA when I talk to him?

The biggest question I have currently is whether to file as a professional w/ a Schedule C or to list my winnings as gambling earnings directly on my 1040.

Other questions are:
What sort of documentation should I keep?
Do I have to pay estimated tax if i'm not filing as a professional or if i've never paid it before?
Besides losing my standard deduction what are the other negatives of showing gambling directly on my 1040?

Dunno what else to ask... any suggestions?

Re: Taxes... once again.
 

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Do I have to pay estimated tax if i'm not filing as a professional or if i've never paid it before?


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"not filing as a professional or if you've never paid it before" has no bearing on whether or not you should pay estimated tax.

From IRS: "Generally, you do not have to make estimated tax payments if your 2004 tax return will show no tax liability. Generally, you should make estimated tax payments for 2005 if you will owe tax of $1,000 or more."


You should have asked this question before you made the appointment:
How much experience do you have with professional gamblers?

Re: Taxes... once again.
 

how many accountants in Miami, FL do you think will have experience with professional gamblers?

Considering that highest stakes poker that is legal in this state is 1/2 limit, i doubt there are many and how the hell would I find one if he exists?

Re: Taxes... once again.
 

Yeah, it's not like Flordia has a bunch of horse tracks around or anything.

Re: Taxes... once again.
 

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how many accountants in Miami, FL do you think will have experience with professional gamblers?

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A boat-load of them. The absence of high-stakes poker does nothing to decrease the presence of other gambling activities.

Acme

Re: Taxes... once again.
 

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how many accountants in Miami, FL do you think will have experience with professional gamblers?

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A boat-load of them. The absence of high-stakes poker does nothing to decrease the presence of other gambling activities.

Acme

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And how many of these "boat load" of gamblers do you think wins enough money to worry about reporting? Most of them lose, especially guys betting horses.

Re: Taxes... once again.
 

I've heard of guys making a living off betting horses. I've also heard of guys making a living betting of dogs too. Anyone confirm?

Re: Taxes... once again.
 

Don't forget that Florida is one of the few states that doesn't have a state income tax. Just because someone lives in Florida doesn't mean that they can only gamble in Florida. Blackjack players travel the world looking for a slight edge. What about internet gambling? Don't be short sighted in your search.

Re: Taxes... once again.
 

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And how many of these "boat load" of gamblers do you think wins enough money to worry about reporting? Most of them lose, especially guys betting horses.

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I'm sorry...this is one of the dumbest things I have read in months. Most poker players lose money or win so little they never think about reporting...yet there are professional poker players living just about everywhere. It does not matter that most of the horse, dog, jai alai, and other sport players lose money; there are many that win. And there are accountants that know how to handle those people's taxes.

You seem to suggest a "screw it, you don't need an accountant that knows wtf he is doing when it comes to gambling" point of view. Gee...that's sound advice.

Acme

Re: Taxes... once again.
 

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there are many that win.

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Your post was actually pretty good till you wrote the portion quoted above. There aren't many sports bettors who win at all. If you think so it must be nice to live in your world. There are more craps players that are long term winners than sports bettors, that alone should tell you something. [img]/images/graemlins/smile.gif[/img]