#1
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Profit, bankroll, taxes...
When does the money you win at the tables actually become profit that is taxed? If you move money from a site to neteller, is that profit? What about taking money from neteller to a bank account that is supposed to be for your poker bank roll, should it be taxed then? Note that my question regards what is legal, not what a person could 'get away with'.
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#2
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Re: Profit, bankroll, taxes...
It's probably not income until you withdraw it fromt he poker site to your personal bank accounts, just my thoughts.
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#4
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Re: Profit, bankroll, taxes...
You can search the Zoo FMI, but the strictest legal definition is that one session is the time from when you sit down at a table to the time you leave. You report your profits and deduct any losses based on that. A reasonable compromise that screws you over a little less is lumping all the tables you played of the same game in a continuous block of time together as one session. This is a somewhat loose interpretation of the law, but the laws weren't written for online poker. One thing is certain: if you want to do your taxes correctly, you cannot just report the net profit you've accrued at the end of the year.
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#5
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Re: Profit, bankroll, taxes...
Unfortunately, there are no clear guidelines yet. I tend to take the 'looser' approach that a session consists of when I sit at a computer to play. I keep an Excel file with each group of PT sessions together as one 'session'.
In terms of income, the definition I would go with is if I netted $50 from 4-tabling for 2 hours, that $50 is income and should be taxed. I can add up all of the winning 'sessions' and that's my income from poker for the year. The losing sessions can then be summed up and included as a deduction. Hopefully you have enough deductions so you can itemize them. That's my plan at least. I just started about this time last year on the 0.02/0.04, so my 'income' last year was like $30. I didn't bother reporting that. [img]/images/graemlins/laugh.gif[/img] This year, I still won't be earning a ton, but enough where I feel I should report it. |
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