#31
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Schedule C
OK. Suppose I've decided to file on schedule C. What should my schedule C look like?
Schedule C has a line for "gross receipts or sales", and then lines for various forms of costs and expenses. The two issues that confuse me the most are: 1) What is a "gross receipt or sale". Looking at my neteller, etc. -- how do I count it? 2) On what line do I report my buy ins or losses? |
#32
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Re: Schedule C
I know I'm just a lowly HR Block Tax preparer, but if I were you, I wouldn't mess with the schedule C unless you're a serious pro who makes big money and does a lot of traveling to various tournaments.
If you get cute and try and claim expenses against your winnings, you're gonna get called on the carpet. The schedule C is just not designed for professional gamblers. If you don't believe me, try and find the "Professional Gambler" business code. |
#33
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Re: Schedule C
[ QUOTE ]
I know I'm just a lowly HR Block Tax preparer, but if I were you, I wouldn't mess with the schedule C unless you're a serious pro who makes big money and does a lot of traveling to various tournaments. If you get cute and try and claim expenses against your winnings, you're gonna get called on the carpet. The schedule C is just not designed for professional gamblers. If you don't believe me, try and find the "Professional Gambler" business code. [/ QUOTE ] That is funny. I had a business for several years, that did not have a business code for the 1040. (I used one of the miscellaneous codes). Filed schedule C every year, deductions expenses and the works. It is probably unwise to file a sched C for gambling unless it is your full time occupation. I would not do it unless my CPA wanted me to do it that way. Please back up your reasoning with valid arguments though. Lack of a code is not a valid reason not to file that way. |
#34
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Re: Schedule C
[ QUOTE ]
[ QUOTE ] I know I'm just a lowly HR Block Tax preparer, but if I were you, I wouldn't mess with the schedule C unless you're a serious pro who makes big money and does a lot of traveling to various tournaments. If you get cute and try and claim expenses against your winnings, you're gonna get called on the carpet. The schedule C is just not designed for professional gamblers. If you don't believe me, try and find the "Professional Gambler" business code. [/ QUOTE ] Please back up your reasoning with valid arguments though. Lack of a code is not a valid reason not to file that way. [/ QUOTE ] OK You had a business. I'm sure you provided either goods or services. What goods & services does a professional gambler provide? None! That's why the Schedule C is inappropriate. |
#35
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Re: Schedule C
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I know I'm just a lowly HR Block Tax preparer, but if I were you, I wouldn't mess with the schedule C unless you're a serious pro who makes big money and does a lot of traveling to various tournaments. If you get cute and try and claim expenses against your winnings, you're gonna get called on the carpet. The schedule C is just not designed for professional gamblers. If you don't believe me, try and find the "Professional Gambler" business code. [/ QUOTE ] Please back up your reasoning with valid arguments though. Lack of a code is not a valid reason not to file that way. [/ QUOTE ] OK You had a business. I'm sure you provided either goods or services. What goods & services does a professional gambler provide? None! That's why the Schedule C is inappropriate. [/ QUOTE ] I highly suggest anyone consult with a gambling-familiar CPA before taking Foghatlive's (or anyone else's) specific filing advice. |
#36
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Re: Schedule C
I am a CPA. Without going into major detail, there are two recognized ways to declare your poker winnings on your Form 1040:
1 - report gross winnings as any other gambling winnings, and then deduct your losses as an itemized deduction, but only to the extent of winnings. 2 - File Schedule 'C' as a professional gambler (poker player). Using this method, you report "Gross Revenues" and deduct "expenses". In general (and I emphasize the word 'general'), the higher the revenues are, the more advantageous it is to file schedule 'c'. There are exceptions to everything, however. The Internal Revenue Service recognizes both methods, and have specific rules pertaining to each way. Allowing professionals to report via Schedule 'C'was a major "win" for players, and was only recognized after legislation in US Tax Court. In summary, I agree with Mr. Miller. Consult an EXPERIENCED professional. In addition, you can self educate yourself via certain books, i'm sure which the gambler's book shop would have, but i've seen a few in the local Barnes and Noble. That's it. Good luck. Brett |
#37
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Re: Schedule C
[ QUOTE ]
I highly suggest anyone consult with a gambling-familiar CPA before taking Foghatlive's (or anyone else's) specific filing advice. [/ QUOTE ] Agree 100% I'm just throwing in my 2 cents. |
#38
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Re: Paying taxes on Poker Winnings...
Brett,
If you're still around, just wondering if gambling losses are considered "expenses" on a schedule C? |
#39
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Re: Paying taxes on Poker Winnings...
[ QUOTE ]
One thing I don't get is the fact that the US Gov't continually asserts that online poker for Real Money is not legal and never will be... Hope I'm not alone in thinking this. Joe M. [/ QUOTE ] Gambling laws have to be the most hypocritical of all laws , especially in NY where I live. I can go to the corner deli and play a million different numbers games, or go to Off Track Betting and bet on horses, but I can't play poker online. |
#40
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Re: Paying taxes on Poker Winnings...
[ QUOTE ]
Gambling laws have to be the most hypocritical of all laws , especially in NY where I live. I can go to the corner deli and play a million different numbers games, or go to Off Track Betting and bet on horses, but I can't play poker online. [/ QUOTE ] That is not the law in new York. |
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