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#21
04-15-2005, 03:11 AM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
I claimed 3100(my net profit) but i guess you are really supposed to keep track of all sessions, and deduct losses from winning sessions which I didn't do [/ QUOTE ] I think it would be fine just to do: +BR at start of year +withdrawals -deposits -BR at end of year (don't forget nice deductions like poker books. perhaps your internet) At least that's how we do it in Canada. 
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#22
04-15-2005, 03:44 AM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] From what I recall the last time this topic came about, as long as you don't cash out, you don't pay taxes on it. And since I've never cashed out... [/ QUOTE ] You need an accountant, a decent one, too. [img]/images/graemlins/wink.gif[/img] [/ QUOTE ] Nah... I'll just never cash out and never have large checks written to me [img]/images/graemlins/wink.gif[/img]. I recall the logic being that when you play online, the money in play is not actually "cash" (it's something more like "credits"). It's also not income because it's not money until it actually leaves the system (it's like Disney Dollars -- it only has value inside the park). Once you have a check made out to you (or an electronic funds transfer), THEN it becomes taxable income and THEN you report it as such. In other words, if you actually want to do something with the money *BESIDES* play more poker, it's taxable. [/ QUOTE ] I'm not sure if you're being sarcastic or serious -- but the above is not accurate. The IRS treats all gain as income and usually has a strong argument to do so -- with gambling winnings it is actually pretty clear. Imagine that instead of a poker account you put money in an offshore brokerage and made money trading stocks abroad; is the gain taxable income? (Hint: yes) If you never have EFTs or large checks, you might avoid attention -- but avoiding attention is not the same as complying. You might choose not to comply but that is different than whether or not your winnings are taxable.
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#23
04-15-2005, 04:55 AM
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Re: (OT) Taxes: Who here is paying?
I'm not paying taxes. Didn't knew I had to. But I won't start. In Sweden the taxes are ~32% so if they're gonna start robbing me they have to put some effort to it [img]/images/graemlins/smile.gif[/img]
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#24
04-15-2005, 08:21 AM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
I'll follow the lead of the Fortune 500 Companies in the U.S. by not paying taxes in this case. [/ QUOTE ] Using that reasoning, I guess you can justify any act at all. I mean, if you find some superstar football player who murdered his wife or a megastar pop singer who molests kids, then you can follow their lead too. My suggestion: If you don't want to pay taxes, find a better excuse than "I'm not because I know some other people that aren't either." Most people pay their taxes fair and square. I know I do.
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#25
04-15-2005, 11:22 AM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
I'm not sure if you're being sarcastic or serious -- but the above is not accurate. The IRS treats all gain as income and usually has a strong argument to do so -- with gambling winnings it is actually pretty clear. Imagine that instead of a poker account you put money in an offshore brokerage and made money trading stocks abroad; is the gain taxable income? (Hint: yes) If you never have EFTs or large checks, you might avoid attention -- but avoiding attention is not the same as complying. You might choose not to comply but that is different than whether or not your winnings are taxable. [/ QUOTE ] I'm actually quite serious. If I walk into a casino with a $100 bill, and walk out with $1000 in chips, I haven't gained any money. Those chips are worthless unless you are on the casino floor (that's why they don't allow you to buy anything in the shops with them). At that point, I have not made any money. It's not until I turn those chips into cash that I have actually made money. This is different from an offshore account. Those accounts are used to make *purchases*. You buy stocks and they come into your possession. As far as I know, the poker sites do not sell goods in that manner.
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#26
04-15-2005, 12:13 PM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
I'm actually quite serious. If I walk into a casino with a $100 bill, and walk out with $1000 in chips, I haven't gained any money. Those chips are worthless unless you are on the casino floor (that's why they don't allow you to buy anything in the shops with them). At that point, I have not made any money. It's not until I turn those chips into cash that I have actually made money. This is different from an offshore account. Those accounts are used to make *purchases*. You buy stocks and they come into your possession. As far as I know, the poker sites do not sell goods in that manner. [/ QUOTE ] that's a liquidity concern, not an income concern. you gained value via gambling. its your fault if you lose those chips, not the IRS's. so you never withdraw to neteller?
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#27
04-15-2005, 12:30 PM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
[ QUOTE ] I'm actually quite serious. If I walk into a casino with a $100 bill, and walk out with $1000 in chips, I haven't gained any money. Those chips are worthless unless you are on the casino floor (that's why they don't allow you to buy anything in the shops with them). At that point, I have not made any money. It's not until I turn those chips into cash that I have actually made money. This is different from an offshore account. Those accounts are used to make *purchases*. You buy stocks and they come into your possession. As far as I know, the poker sites do not sell goods in that manner. [/ QUOTE ] that's a liquidity concern, not an income concern. you gained value via gambling. its your fault if you lose those chips, not the IRS's. [/ QUOTE ] I have only "gained value" when I exist on the casino floor (and even then, it's not real money yet). If I take those chips home, they are nothing more than souvenirs. The chips have NO VALUE on their own. Even the casino's own restaurants will refuse to take the chips. If you need to pay and only have chips, they will take the chips to the casino floor to turn them to cash, then bring you back the cash. THEN you give them back the cash and the bill is paid. [ QUOTE ] so you never withdraw to neteller? [/ QUOTE ] Firepay, and not profit (not yet). There's $1000 in the account that I deposited a few years ago. That's my Paradise bonus reload money. Every time there's a Paradise bonus, I "buy chips" (Paradise's language), get bonus credit, then withdraw $1000 back into the account.
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#28
04-15-2005, 12:36 PM
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Re: (OT) Taxes: Who here is paying?
Aaron,
Your definitions of income gained via gambling differ very greatly from the IRS's. This has been settled in court many years before our own. I highly suggest reading through "The Gambler's Guide to Taxes" by Walter L. Lewis. Being that this is not an arena where I'd like to [censored] around, I just reported all income. I am reporting as a professional player, though, so I can deduct losses as well. Self employment taxes suck though. Rob
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#29
04-15-2005, 12:37 PM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
I have only "gained value" when I exist on the casino floor (and even then, it's not real money yet). If I take those chips home, they are nothing more than souvenirs. The chips have NO VALUE on their own. [/ QUOTE ] not to be to blunt here, but: it doesn't matter what you think about this. it matters what the IRS thinks, and they consider this winnings.
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#30
04-15-2005, 12:44 PM
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Re: (OT) Taxes: Who here is paying?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I'm actually quite serious. If I walk into a casino with a $100 bill, and walk out with $1000 in chips, I haven't gained any money. Those chips are worthless unless you are on the casino floor (that's why they don't allow you to buy anything in the shops with them). At that point, I have not made any money. It's not until I turn those chips into cash that I have actually made money. This is different from an offshore account. Those accounts are used to make *purchases*. You buy stocks and they come into your possession. As far as I know, the poker sites do not sell goods in that manner. [/ QUOTE ] that's a liquidity concern, not an income concern. you gained value via gambling. its your fault if you lose those chips, not the IRS's. [/ QUOTE ] I have only "gained value" when I exist on the casino floor (and even then, it's not real money yet). If I take those chips home, they are nothing more than souvenirs. The chips have NO VALUE on their own. Even the casino's own restaurants will refuse to take the chips. If you need to pay and only have chips, they will take the chips to the casino floor to turn them to cash, then bring you back the cash. THEN you give them back the cash and the bill is paid. [/ QUOTE ] this is a liquidity concern, which is a separate issue. casino chips have value and are considered assets. if disney paid an employee with disney dollars, that employee would still have to pay income taxes.
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