Re: What exactly is taxed?
[ QUOTE ]
I have a couple of questions for you guys.
First, what exactly should I pay taxes on? I play at Party Poker and so far I've made two deposits and one withdrawl. I deposited a total of $1167 (500+667) before I stopped bleeding money and started making some. I've only withdrawn $500 so far. The way I see it, until I've withdrawn more than I've deposited there is no net profit to be taxed, correct? For example, if I were to take one more withdrawl of $667 this year, I'd be even and I wouldn't do anything unusual on my taxes. Right? Any withdrawls after that (this calendar year) are taxed?
Second question. I live in Utah where gambling on the Internet is illegal. If this stuff is so easy for the IRS to track, should I also be worried about the local cops knocking on my door? I read in the newspaper that there hasn't been much enforcement of that law in the last ten years or so, but with the increased popularity and visibility of poker, I wonder if that could change.
[/ QUOTE ]
dont worry bout it bra. the money you and i are making is way too small to be worrying about such symantics as taxes.
|