question on dealmaking and taxes - Page 3

giantsrule · #21 03-25-2005, 01:18 PM

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Yes, the threshold is $600. I thought the rule applied to all gambling, so no idea why it would be applied differently to sportsbook bets.

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Thanks. I could be wrong about sportsbook bets, but a few years ago I made a preseason bet on a team winning the Super Bowl which I think would have paid maybe $700 and I asked about how to collect and taxes if I won and the guy at the sportsbook told me about mailing the ticket in if I wanted and said that only $10K or more gets reported to the IRS and taxes were just up to me. I didn't win the bet.

burningyen · #22 03-25-2005, 01:39 PM

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So what the Taj is apparently saying is that the deal was illegal under NJ law.
It would be interesting for someone to ask the Gaming Commission directly.

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No, they are saying what they pay out is regulated. What the players do with their own money is up to the players.

Scooterdoo · #23 03-25-2005, 02:16 PM

This year I monied in a few tournaments and have received a few W2G -- one was for a 2nd in a $1k event was fairly significant. I have also played in several tournaments with $500-3k buy-ins so I spoke to my accountant and he told me that I simply need to document my direct tournament costs and other gambling losses and there will be no problem at all in writing them off of the top from the W2G's. He says it is very common. Now he did mention that we don't want to take advantage of it, but there is no issue if we take the costs of the buy-ins. Of course I have kept the receipts so it's easier to document if I get audited. It probably would have been helpful for you to get the names of any players you paid money to and got their SS No's or driver's license #'s like the casinos get, but I would think you are probably all right if you just document it and explain what happened if audited.

If there are any accountants out there feel free to chime in with opinions.

TomBrooks · #24 05-02-2005, 10:16 PM

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Here's the key part: when the top 9 players were paid by the casino, they were actually handed the amounts they were to be paid under the original prize structure. ...now up to the players as to the tax consequences of the deal.

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Yes, that is the key to this situation.

If I were one of the winners that got a W2-G, I would insist to the person(s) I gave money to that they provide similar information to me that I had to provide to the casino.

By the way, does the casino ask to see ID to fill out the W2-Gs? Of course if you have a players card, they know who you are already anyway and wouldn't need more ID. I wonder what they would do with someone who had no card and no ID?