Tax Q -- Taking A Shot To Offset Wins
I apologize for my ignorance on these tax matters ...
But does it make sense to take a shot at a medium to big buy-in tournament to offset poker winnings for tax purposes?
Say you've earned as a second income $50k playing poker online for a year and want to declare your winnings. If you play in 4 $2.5K buy-in events, that's $10k that goes untaxed, saving yourself 30-40% of that and giving yourself an offset of $10k.
True, you've lost $10k to save yourself $3-4k, but you've also given yourself a shot (4x) at >$100k.
I've heard of wealthy people going into some investment to use the losses as a tax write-off or as an offset on their earnings -- is it the same principle?
Didn't know where else to post this. Thanks.
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