Taxes... once again.

sprmario · #1 08-21-2005, 12:02 AM

I have an appointment Monday morning to see a CPA to discuss the issue of paying taxes on my poker winnings. Any suggestions on what questions I should have for my CPA when I talk to him?

The biggest question I have currently is whether to file as a professional w/ a Schedule C or to list my winnings as gambling earnings directly on my 1040.

Other questions are:
What sort of documentation should I keep?
Do I have to pay estimated tax if i'm not filing as a professional or if i've never paid it before?
Besides losing my standard deduction what are the other negatives of showing gambling directly on my 1040?

Dunno what else to ask... any suggestions?

grinin · #2 08-21-2005, 01:47 AM

[ QUOTE ]
Do I have to pay estimated tax if i'm not filing as a professional or if i've never paid it before?

[/ QUOTE ]
"not filing as a professional or if you've never paid it before" has no bearing on whether or not you should pay estimated tax.

From IRS: "Generally, you do not have to make estimated tax payments if your 2004 tax return will show no tax liability. Generally, you should make estimated tax payments for 2005 if you will owe tax of $1,000 or more."

You should have asked this question before you made the appointment:
How much experience do you have with professional gamblers?

sprmario · #3 08-21-2005, 10:53 AM

how many accountants in Miami, FL do you think will have experience with professional gamblers?

Considering that highest stakes poker that is legal in this state is 1/2 limit, i doubt there are many and how the hell would I find one if he exists?

cardcounter0 · #4 08-21-2005, 11:10 AM

Yeah, it's not like Flordia has a bunch of horse tracks around or anything.

AcmeSalesRep · #5 08-21-2005, 11:18 AM

[ QUOTE ]
how many accountants in Miami, FL do you think will have experience with professional gamblers?

[/ QUOTE ]

A boat-load of them. The absence of high-stakes poker does nothing to decrease the presence of other gambling activities.

Acme

iceman5 · #6 08-21-2005, 11:29 AM

[ QUOTE ]
[ QUOTE ]
how many accountants in Miami, FL do you think will have experience with professional gamblers?

[/ QUOTE ]

A boat-load of them. The absence of high-stakes poker does nothing to decrease the presence of other gambling activities.

Acme

[/ QUOTE ]

And how many of these "boat load" of gamblers do you think wins enough money to worry about reporting? Most of them lose, especially guys betting horses.

toss · #7 08-21-2005, 11:32 AM

I've heard of guys making a living off betting horses. I've also heard of guys making a living betting of dogs too. Anyone confirm?

AcmeSalesRep · #8 08-21-2005, 11:42 AM

[ QUOTE ]
And how many of these "boat load" of gamblers do you think wins enough money to worry about reporting? Most of them lose, especially guys betting horses.

[/ QUOTE ]

I'm sorry...this is one of the dumbest things I have read in months. Most poker players lose money or win so little they never think about reporting...yet there are professional poker players living just about everywhere. It does not matter that most of the horse, dog, jai alai, and other sport players lose money; there are many that win. And there are accountants that know how to handle those people's taxes.

You seem to suggest a "screw it, you don't need an accountant that knows wtf he is doing when it comes to gambling" point of view. Gee...that's sound advice.

Acme

grinin · #9 08-21-2005, 12:35 PM

[ QUOTE ]
how many accountants in Miami, FL do you think will have experience with professional gamblers?

[/ QUOTE ]

I doubt there are many. However, dealing with an accountant who has no experience with professional gamblers is like asking a patent lawyer to help you in your drunk driving defense.

Well..., not quite that bad.

MicroBob · #10 08-21-2005, 02:55 PM

We've seen many many posts on here from posters who were told the most ridiculous advice from CPA's.
(not the least of which was "nobody is allowed to file a schedule-C on your gambling winnings" which is just plain wrong)

Not all of them know what the hell they are doing.

you don't JUST need a CPA. You need a CPA who is at leat somewhat familiar in this field.

Most CPA's who hear 'gambling winnings' just assume it's all the same as the little, old lady who hits a big slot-jackpot in Vegas.
Very few actually consider the possibility that some people out there actually have an expectation of profit.

buy a copy of Walter Lewis' Gamblers Guide to Taxes and bring it with you.
Then you can show the CPA what you are talking about.