[Rushmore]

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This is correct, except for the part about having to be a professional in order to deduct losses. Section 165(d) of the revenue code allows you to deduct gambling losses to the extent that you have gambling gains. There is no requirement that you be a professional gambler in order to do this.

There may be other benefits to having poker playing considered your "trade or business". However, anyone to whom this applies should talk to a knowledgable accountant or tax attorney to determine their best course of action.

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Looked into it a bit further. You are right, i'm happy to say. It's expenses that you may not claim unless you are professional.

My accountant tells me that one of the big drawbacks to declaring as a pro is social security, which will need to be paid. Ultimately, the question is whether or not you can offset your social security contributions with expenses. This would depend on a lot of things, obviously.

Talking to a knowledgeable tax attorney or accountant is clearly the correct thing to do, but be advised--you may hear different things from different people on this subject. It's a little tough to get a straight answer on some things (what constitutes a "session," what do you need for online documentation [Neteller account, all poker site accounts, checking accounts, and/or personal books?], are funds in poker accounts declarable gains, or do they only become so when you cash out?, etc.)

It's esoteric, even for the guys who are expected to know. There is some grey area.

Make a good faith effort, and hope not to be audited.