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http://www.traderstatus.com/professi...status.com.htm
I emailed this donk and asked him a few questions, one of which was:
What are the advantages of incorporating as a professional gambler?
He responds:
"What do YOU think the advantages are...?"
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I just checked out his website. How could you ask such a silly question when he already answered it for you in his essays? No offense, but the way the OP was written I am surprised he didn't totally ignore your email. Unless you have already contracted his services, I think his response was valid,
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Huh?
"There are actually many benefits to filing under the umbrella of a Professional Gambling Entity, but the main one discussed here is to help thwart the #1 tool the IRS has to deny your Professional Gambler Status - that you did not do your gambling full-time and to the exclusion of all other income producing activities (or even all other social activities for that matter).
The theory here is to have a separately filing taxpayer, an entity, properly formed for the sole purpose of gambling. The only activity of the entity is that of a professional gambler, and there are no other activities that can be pointed to to suggest that the entity had interests other than that of being a for-profit gambling operation.
The entity is a "pure play" as a gambling operation and if the level of play achieved during the year is significant, regular, and continuous in the eyes of the law, then Professional Gambler Status is more readily assured."
OK. He used 250 words to say "By incorporating the IRS cant say you arent a Pro Gambler"
"Another benefit is that some of the net gambling profits that pass through certain entities can be sheltered from the 15.3% self-employment tax."
Really indepth essay. Clearly, all questons about incorporating have been resolved.