Re: tax question
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So I have learned through the message boards that you have to pay taxes on what is in your account and not just what you cashout from neteller. I am about to pay for the state taxes before jan 1st 2006 so that I can deduct off the fed taxes. So... my question is... I have about 50k in an account that is being blocked and investigated because I was at a table where people were dumping chips. One person told me that he account was suspended for 8 weeks. So I am in a way scared, perhaps this is a shady site and I don't get my money back... There is a chance. In this situation would I have to pay taxes for the year with the money that is currently blocked?
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Your account being blocked has no bearing on the taxes you owe. If you are filing as a recreational gambler, you owe tax on the sum of all your winning sessions minus the sum of all your losing sessions (if you file as a pro you will use the net). Simple as that.
As for a CPA, I recommend Russ Fox. A google search should give you plenty of info on him. PM me if you need more details.
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There is no way Im paying tax on that money yet. What if the money gets confiscated because they think you were cheating? Now you lose the money AND already paid tax on it? Not me.
The money is under investigation so you havent earned it yet. Think of it as a bonus that might or might not get. Its not your money until all conditions are released and you can withdraw it at will. Right now, the money still belongs to the site, not you.
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