Re: Another Poker/Tax Post --- How To Suddenly Start Reporting?
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Issue #5: My Money When I Win It or Receive It?
Straightforward. Ignoring the fact that online poker sites operate offshore, which I read is irrelevant to your reporting protocol, do I have to report my winnings when they occur or when I finally cash out? The best argument I can think of that I haven't heard anywhere, is that money still deposited at a poker site isn't the equivalance of stashing money under a bed. Money is the tool employed in poker by which more money is won. This is to say, if you are moving up limits in poker as your winnings increase your bankroll accordingly, it seems wrong to tax that bankroll. I could potentially be making no sense here.
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I've read this argument before, and it won't fly.
If you won a bunch of money at the craps table, but left the cash in a safe deposit box at the casino, do you think the IRS would agree that the money isn't really "yours" just because you left it there? (I'm pretty sure there was actually a case on this, but I don't remember where I read it).
Leaving your money at Party is exactly the same thing.
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