#1
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Should I play higher based on this assumption
Year to date I have made about 150K, and I do pay taxes. So any dollar that I make now, I am paying 33%. So when I win I pay a tax of 33% but when I lose I save 33%. So considering that would it mathamatically (i know that is spelled wrong, if I didn't write this I am sure that someone would make a comment later) correct to play higher one level than my bankroll can handle on the fact that my swings are reduced by 33%
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#2
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Re: Should I play higher based on this assumption
I believe this is incorrect b/c you are basing your assumptions that net winnings are taxable income. Rather, your gross winnings are taxable, and your losses are deductions....but I'm not sure if this is only for pros or for others merely claiming gaming income.
However, please do not take this as any sort of tax advice. If you really are winning this much $, you really should see a CPA or tax specialist. |
#3
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Re: Should I play higher based on this assumption
Given your assumptions, I think you can play 33% higher.
Or 50% higher. Instead of 10/20, 15/30. That's 50% higher. But 10/20 is 33% lower than 15/30. Something like that. |
#4
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Re: Should I play higher based on this assumption
What I want to know is how you got that good at poker, yet can't figure this question out.
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#5
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Re: Should I play higher based on this assumption
[ QUOTE ]
What I want to know is how you got that good at poker, yet can't figure this question out. [/ QUOTE ] |
#6
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Re: Should I play higher based on this assumption
[ QUOTE ]
What I want to know is how you got that good at poker, yet can't figure this question out. [/ QUOTE ] Note that he didn't say he'd made $150k at poker. |
#7
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Re: Should I play higher based on this assumption
[ QUOTE ]
Year to date I have made about 150K, and I do pay taxes. So any dollar that I make now, I am paying 33%. So when I win I pay a tax of 33% but when I lose I save 33%. So considering that would it mathamatically (i know that is spelled wrong, if I didn't write this I am sure that someone would make a comment later) correct to play higher one level than my bankroll can handle on the fact that my swings are reduced by 33% [/ QUOTE ] What is the obstacle to moving up? Skill? Taxes don't matter if you can't beat the game. Nerves? The tax situation could help you if realizing that your effective stakes are reduced by 1/3 makes you more comfortable with playing for high stakes. Bankroll? It depends. Your bankroll could disappear just as fast because your avoided tax on previous profits isn't necessarily cash that you can gamble with. Case 1: You've paid your estimated taxes on your winnings to date and you can't get a refund due to new losses until you file sometime next year. The tax offset does nothing to protect your bankroll. Case 2: You've set aside money to pay your taxes but you haven't paid. If you lose your bankroll you won't owe as much tax, so you can replenish your bankroll from tax money. Case 3: Your main income is a job that has withholding. You can reduce your withholding if your tax bill is lowered due to losses and recover your money within a few paychecks. I could go on but my point should be clear. Where is the money that pays the taxes on your winnings to date? How soon can you tap that money for your bankroll if you lose those winnings? |
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