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Old 07-07-2004, 03:36 PM
Ulysses Ulysses is offline
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Join Date: Sep 2002
Posts: 5,519
Default Re: What is the best way to avoid taxes?

If you're really intent on not paying the taxes, your option of selling to a friend for 90 cents on the dollar is VASTLY superior to your other options. Every other option leaves an electronic and/or paper trail that is very easy to trace. The other option mentioned in the thread, offshore bank acct, is also pretty bad IMO - especially post 9/11, there is VERY heavy scrutiny of offshore bank accts.

If you have a trusted friend in Canada (or wherever else they don't have to pay taxes), there is an even better method than Neteller transfers for cash. Play $5000+100 PokerStars SNGs. The fee is only 2% and you are totally legit as far as the IRS is concerned. This keeps you safe from the IRS getting your transfer info from Neteller and using that against you (which could easily happen).

But here's the best option. My income from poker relative to other income of mine isn't significant enough for me to deal with this - I just report it all and pay the extra taxes. However, for someone like you, I think this is your best plan:

Cashout through any means and LOG AND REPORT all of those winnings. Neteller, check, whatever. LOG ALL YOUR ONLINE WINNINGS. OK, so let's say you win 5k one session, lose 2k another, and win 2k another session. That leaves you w/ 7k in winnings and 2k in losses. Now, you cash 5k to your bank. In your records, you have 7k in winnings, 2k in losses. Now withdraw 5k cash. The next day, deposit 1k cash. Log a 4k casino loss in your records. Now, all of a sudden, you have 7k in winnings v. 6k in losses to deduct for net income of 1k. You get the idea. This, IMO, is by far the best strategy and frankly is pretty much what most of the full-time B&M pros I know do.

Note that many options (get a check, deposit at a check cashing place) are not only traceable, but if you are found out you will face SEVERE tax evasion penalties - far more than if you just didn't pay and plead ignorance. In that respect, the more effort you put into hiding the trail, the worse the likely consequences if found out.
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