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#1
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Right. My point is that I don't get why anyone would want to be a professional gambler. Why don't I just stay non-professional and not file a schedule SE and not pay the extra taxes?
[ QUOTE ] [ QUOTE ] The real issue, which i assumed the original question really was, is if you should file as a professional gambler. That is where I think most people shouldn't because of the huge Self Employment tax penalty. [/ QUOTE ] I'm really not trying to pick on you but, If you file as a sole proprietor/Pro gambler and get paid (show a profit) you pay the double Fica and Medicare taxes anyway by filing Schedule SE. [/ QUOTE ] |
#2
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getting a 15% dividend tax rate on a large bulk of your income, basically turning it into passive income, could be important.
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#3
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[ QUOTE ]
By incorporating, you gain the advantages that any small business man gains when incorporating. Your insurance becomes a company benefit and a business expense. Your car could be a company car, and deductible. Talk to a CPA about the advantages. The disadvantage would be you would have to pay yourself a small salary, which would be double taxed, once at the corporate level, and once as personal income. You would also have to pay your matching social security on that salary. The advantage is, with profits over your salary, the corporation could pay you that as a dividend which is taxed at a lower rate. Talk to a CPA, see what deductions you can generate as a corporation, and where your break-even point on income is as far as being a corporation or an individual. [/ QUOTE ] Holiday Inn Express, huh? |
#4
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I don't think sites would allow to create account to corporation or personal business. Look, it's PokerStars:
"6. PERSONAL USE. Commercial use of the Software is strictly forbidden. The User is only allowed to wager for his/her personal entertainment. Under no circumstances shall a User be permitted to use his "real money account" with PokerStars for any purpose other than for playing the Games and in the event that PokerStars determines that the foregoing provision has been breached by a User PokerStars reserves the right to immediately block access to the Games to such User, to terminate such User's account with PokerStars and to seize all monies held in the relevant PokerStars "real money account". The User agrees that his/her use of the Games is in a personal (and not professional) capacity. Before the User participates at PokerStars, he/she is responsible to verify the laws on gambling which govern the User use of the Software in order to determine restrictions and act in accordance thereto." |
#5
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If a site is going to ban you for being a professional, it will have nothing to do with the tax return that they will never ever see.
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