Poker as Taxable Income

[Niediam]

I don't have any IRS rulings or regulations in front of me, but some things off the top of my head...


It is two sessions if you play for three hours, take a two hour lunch break, and then play for three more hours.

It is one session if you play 3/6 holdem for a hour while waiting for a 10/20 holdem table to open and then play 10/20 holdem for two hours.

It is two sessions if you play 3/6 holdem for an hour while waiting for a 10/20 omaha table to open and then play 10/20 omaha for two hours.

[Kurn, son of Mogh]

*All* gambling winnings are taxable regardless of whether or not the casino gives you a W2G (Foxwoods, which adds money to the prize pool, does not).

[Deorum]

Well, as most people have mentioned, gambling winnings are
indeed taxable income. However, something which has not yet
been mentioned is that if you file as a professional
gambler, then you would pay quarterly estimates, like a
writer does, as opposed to one large lump sum at the end of
the year.

[Tacjedi]

IRS topic - Gambling Income and Expenses

[Schwartzy61]

All income from whatever source is taxable except for certain tax exempt investments and things.

To put it another way, if you sell drugs and make a profit that profit is taxable income. There isn't an audit trail and you earned it through illegal methods but the income is still taxable. The IRS really doesn't care how you made the money it just wants some of it.

[tek]

[ QUOTE ]
*All* gambling winnings are taxable regardless of whether or not the casino gives you a W2G (Foxwoods, which adds money to the prize pool, does not).

[/ QUOTE ]

OK. [img]/images/graemlins/wink.gif[/img]

[JonLines]

[ QUOTE ]
It doesn't count as taxable income in the UK. God knows if it's taxable for yanky doodle dandys though. I too would be interested in finding out.

[/ QUOTE ]

Yeah living in the UK rules! Plus you can leave as many trails as you like in a holiday in Vegas, come home and be free from the IRS.

I think the USA might be the only country that actually taxes gambling winnings. Anyone know of any others?

[Deorum]

[ QUOTE ]
All income from whatever source is taxable except for certain tax exempt investments and things.

To put it another way, if you sell drugs and make a profit that profit is taxable income. There isn't an audit trail and you earned it through illegal methods but the income is still taxable. The IRS really doesn't care how you made the money it just wants some of it.

[/ QUOTE ]

In a related story, Benny Binion was once arrested for not
paying taxes on a bribe.

[Kurn, son of Mogh]

You are correct that there's no audit trail for B&M income. However, if your winnings get big enough that your spending patterns are out of line with your reported income, that tends to attract attention.

[Kurn, son of Mogh]

One reality about the US is that, while we have the lowest tax rates of any industrialized country, we also have the most draconian tax enforcement.