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#1
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Looking for a CPA who understands Gambling Taxes
I am looking for someone to help with filing my taxes and maybe some other stuff.
If there anyway to file as a Professional Gambler and not pay SE Tax? What are the tax advantages of starting a corporation? Can I start a corporation as a Professional Gambler? Give me information on the different retirement plans one can invest in with tax benefits... I am overseas and was planning to take the foriegn earned income exclusion and i am curious if I can still take advantages of these retirement plans. Thanks. |
#2
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Re: Looking for a CPA who understands Gambling Taxes
More questions: If I start taking care of my parents, and neither of them is employed, can I start claiming them as dependents. They do not recieve any pensions or SS yet.
I will add my name to their mortgage also if that is nessecary. |
#3
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Re: Looking for a CPA who understands Gambling Taxes
[ QUOTE ]
If I start taking care of my parents, and neither of them is employed, can I start claiming them as dependents. [/ QUOTE ] If you provide more than half of their support you can claim them as dependents. Vince |
#4
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Re: Looking for a CPA who understands Gambling Taxes
[ QUOTE ]
I am overseas and was planning to take the foriegn earned income exclusion [/ QUOTE ] The exclusion does not apply to gambling winnings. Vince |
#5
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Re: Looking for a CPA who understands Gambling Taxes
If the pokersites are willing to open accounts by a corporation, I can't see why you wouldn't be able to play poker as a corporation. I'm curious if anyone has done this: Open a neteller account as a corporation (drawing money from a corporate bank account) and then deposit money into a site as a corporation.
If you indeed can play as a corporation, the corporation will pay half the self-employment (7%) and can deduct it as an expense. This is a good advantage. Also, a corporation is still in the 15% tax bracket if it has income of 50k while an individual would be at 28% at that point. |
#6
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Re: Looking for a CPA who understands Gambling Taxes
[ QUOTE ]
If the pokersites are willing to open accounts by a corporation, I can't see why you wouldn't be able to play poker as a corporation. I'm curious if anyone has done this: Open a neteller account as a corporation (drawing money from a corporate bank account) and then deposit money into a site as a corporation. If you indeed can play as a corporation, the corporation will pay half the self-employment (7%) and can deduct it as an expense. This is a good advantage. Also, a corporation is still in the 15% tax bracket if it has income of 50k while an individual would be at 28% at that point. [/ QUOTE ] So over 50K in earnings is taxes at 15% tax rate plus 7% SE tax, that is also deductible? |
#7
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Re: Looking for a CPA who understands Gambling Taxes
For indiviuals, I believe the marginal tax rate is 15% for the first 40k or so. Then any earnings above that the tax rate is 28%. If it is a corporation, the tax rate is 15% for the first 50k or so. Then it becomes 28% for any income above that.
So if you play as a corporation and make 90k, you can retain 50k as earnings for the corporation and pay yourself 40k in salary. You'll end up only paying 15% for the entire 90k. If on the other hand you do it as an individual, you'll owe 15% for the first 40k or so (after exemptions) but pay 28% on any income above that. There will be no self-employment if you have a corporation. However, you have to personally contribute 7% for SS and medicare like all employees do (this is taken from the salary that you earn from the corporation). And the corporation pays 7% for you like all employers do. The advantage is that this 7% becomes a deductible business expense from the point of view of the corporation and will therefore lower the taxable income. We're talking C corporation not S corporation. This would all be useless if you can't play poker as a corporation. Astroglide hasn't given any specific info about corporations for poker playing in his link. |
#8
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Re: Looking for a CPA who understands Gambling Taxes
can one person own a corporation?
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#9
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Re: Looking for a CPA who understands Gambling Taxes
I believe that in Nevada you can. I don't know about other states. There is also no corporate tax in Nevada.
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#10
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Re: Looking for a CPA who understands Gambling Taxes
the corporation idea has been "discovered" in almost every tax thread i've ever read on 2+2.
it's been thoroughly researched by www.rbstaxes.com and they concluded that there is no legal way to benefit from it. i trust them a lot more than the "hey what if..." people. |
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