Internet poker and taxes and moving abroad.

[Buffel]

Just a question you are assuming to win 200k a year based on a few months playing? You are multitabling, which limit, which games are you playing?
I think that to gaine that amount on a consistent basis on the internet you must play a very high limit and you must be extremely good.
Are you aware that the swings are big?
Are you a strong proven winning player in the card rooms?
Do you play already a long time?
I am just amazed by the the very high wins you expect.
Is there someone ho has those winning figures over a long periode on the internet and at which limit?

[GrannyMae]

no, it took about 4 years before they could even be heard in canada, and it was very expensive as well. they spent a fortune on a barrister there and it was still a pain.

that's why i was suggesting CR. i would imagine CR would be very accomodating to this. the point was that the IRS would just be told: "i went there on vacation and loved it, so decided to live there and work there 6 months of the year"

the smaller countries would have a much faster timeline than canada.

[Rudbaeck]

I seem to recall someone mentioning that New Zeeland was tax free for gambling. It's a beautiful place to live, but far from cheap.

But I managed to be wrong about my own countries tax laws up until quite recently, so don't listen to me.

[Jimbo]

Anyone else here think it is truly remarkable that these people come on here making a 300,000 dollars a year and cannot figure out how to either go to the IRS website or hire a frigging attorney?

No matter where you live or whether or not you renounce your citizenship if the IRS determines (at it's own discretion) that you did so in order to avoid paying taxes, guess what? You still owe the US government tax for the next ten years.

You had better find a country without an extradition treaty or else you will have a big tax bill and your own personal cell in a Federal prison.

For a mere $50K I'll provide a link to the pertinent statute and save you some time behind bars.

Jimbo

[JAque]

I am not sure about this but if you become a permanent resident in another country (meaning you claim you are planning to reside/work for a long time), I don't believe that the tax burden should be much as you are already paying the taxes of that country. You need to check with and Internatioanl law attorney as agreements differ form country to country and the US and the difference between a work visa and a residence may affect this. The point is you don't have to give up your US citenship if your are flexible.

[Jimbo]

rerazor got lucky because in 1996 the 10 year rule was modified somewhat but it does come with a small caveat:

[ QUOTE ]
Congress passed a provision in the 1996 immigration law that held that anyone who relinquished their citizenship for the purpose of avoiding taxes would be barred from coming back to the U.S. - even to visit.

[/ QUOTE ]

Jimbo

So no jail time but do not plan on visiting Mommy anytime soon either. [img]/images/graemlins/smile.gif[/img]

[Instinct]

In Canada, gambling winnings are not taxed.

[4thstreetpete]

[ QUOTE ]
In Canada, gambling winnings are not taxed.

[/ QUOTE ]

Just to avoid some confusion with American readers, this is not entirely correct. True, if you go hit a B&M and you win $50,000 for example, none of that is taxed. You don't have to fill out any forms or all that nonsense. What you do with that money is up to you.

When you play online, there's a money trail which leads you to your bank if you use neteller for example. I'm currently in a situation that I make more from my poker winnings than I do from my employment. I will have to file all my poker earnings on my tax return because not reporting the six figure income I make from poker would be way too risky. They will deem me a professional gambler whether I like it or not and will have to pay taxes on that.

As much as it pains me to pay my taxes on my poker winnings as a Canadian, the consequences of not doing so will most likely pain me more. It's always best to talk to a tax attorney for advice before you even think about not paying taxes on your online winnings. --- Don't shoot the messenger---

[rerazor]

"So no jail time but do not plan on visiting Mommy anytime soon either. "

What the hell is your problem? Your posts have been mildly informative but why the attitude? I HAVE gone to the IRS website and I have also read about the laws you speak of. My understanding is that both the "no visit" and the 10 year laws both have no teeth, IE they don't have the resources to enforce them. What I'm looking for is people who have actually done it and what their experiences have been. Once I got that preliminary information I would seek out an attorney to finalize my plans.

I'm guessing your anger comes from me being a "tax dodger"..why should I stay and pay taxes on something Congress is hypocritically trying to make illegal? Theoretically all my winnings could be siezed at any time. I don't mind paying my fair share, but the tax laws are so skewed against online poker I probably owe more than I've won.

[rerazor]

"mind if i ask what game you play? not looking for a site or other details, just the game."

200 nl right now. I play a lot of them though =) I know people will give me [censored] about my claims, it's really not important to me that they're believed. Whether I'm prepared for the move is up to me.

The dual citizenship thing is interesting, I will definitely explore that option. Obviously I will be consulting with professionals before I make the jump.