Winning players and taxes ("Gambling and the Law"?)

[grapes]

I have been playing for about 5 years, but only last year did I start winning consistently, and I still had a job most of the year, aside from still being a full-time student.

This year, poker has become my primary source of income. The only problem with that is going to be dealing with taxes, come this time next year. I've seen bits here and there about what kind of records are necessary, and other tips, but there doesn't seem to be much information available overall. I am a 22 year old college student, and my taxes have always been very simple, one student job as my only source of income, so I don't know very much about tax law.

Does anyone know of a source of good information for gamblers about US taxes? The types of things I'm wondering about are how winning money offshore affects things (most of my play, and winnings, are online), what kind of records I need to keep in case of an audit (and how to avoid the audit in the first place), what would happen if I got audited and didn't have records, deductions I could take (can I write off a new computer and my Internet service?), etc. I don't even know if I need is a tax guide with detailed information for gamblers, or a dedicated book/guide for gamblers.

Anyone know of any books and web sites that might help me, or have tips? I've heard of Nelson Rose's "Gambling and the Law", but I don't know whether it's worthwhile, whether it deals with taxes at all, and the fact that it was published 17 years ago has stopped me from buying it so far. Anyone read this one?

Thanks in advance.

[Easy E]

From various things i've read, mostly articles and posts:

I have been playing for about 5 years, but only last year did I start winning consistently, and I still had a job most of the year, aside from still being a full-time student.

This year, poker has become my primary source of income.


To file as a pro, and deduct your expenses, you have to have 5 years of play AND be profitable 3 out of the 5. I don't think you qualify yet.

You'll have to report as an itemized deduction, deducting your losses up to your winnings.


The only problem with that is going to be dealing with taxes, come this time next year. I've seen bits here and there about what kind of records are necessary, and other tips, but there doesn't seem to be much information available overall. I am a 22 year old college student, and my taxes have always been very simple, one student job as my only source of income, so I don't know very much about tax law.

Because of your knowledge and lack of records, I suggest you see a tax attorney with gambling law experience VERY SOON

Does anyone know of a source of good information for gamblers about US taxes? The types of things I'm wondering about are how winning money offshore affects things (most of my play, and winnings, are online), what kind of records I need to keep in case of an audit (and how to avoid the audit in the first place), what would happen if I got audited and didn't have records, deductions I could take (can I write off a new computer and my Internet service?), etc. I don't even know if I need is a tax guide with detailed information for gamblers, or a dedicated book/guide for gamblers.

There's a book out there (haven't gotten it) by two lawyers (husband/wife team?) who write for Card Player. I think their name ends in Rouche? it's a long hyponated name.
Search the CP site using taxes..

Screw it, i just did it: Yolanda Smulik-Roche and Roger C Roche. Here's where to go-
"Their book, The Tax Guide for Gamblers, is the most comprehensive one on the subject. See their website at www.rbstaxes.com for more information regarding their practice, articles, and useful tax links"

Search CP's Archives, you can find various articles on taxes, including the records that you need to keep. Be warned that the IRS is evidently going after gamblers more, especially those that try to file as professionals, from what I've read.

"I've heard of Nelson Rose's "Gambling and the Law", but I don't know whether it's worthwhile, whether it deals with taxes at all, and the fact that it was published 17 years ago has stopped me from buying it so far. Anyone read this one? "

I wrote Prof Rose a few weeks ago, asking when he was planning on updating it so I could pick it up. Like you, I'm not cranked about getting 17 year old info, though he says that most of it is still good. He doesn't cover Indian casino and Internet areas in that old version(obviously), so I'm waiting until he updates it to get it.

Good luck. If you pick up the Roche book, give us a review- maybe I'll invest in it.

[Anadrol 50]

I would like to see some of the pros' tax records.

[Easy E]

You'd like to see if they're making the living they claim they're making?

Or you want to see if they're reporting?

Or just to be nosy?