Taxes for pro Gamblers

[ QUOTE ]
[ QUOTE ]


As far as I can ascertain online pros should be paying taxes on profits in the UK, maybe if they had jobs they could reasonably argue against the presence of a profit motive, however if they were regular players I doubt even that.

Regards Mack

[/ QUOTE ]

Taxation of gambling was abolished in 2001 in the UK so citations before then are irrelevant. You're simply wrong.

[/ QUOTE ]Isn't the theory that for every gambling gain there will be a corresponding gambling loss so they all offset each other? If everyone claimed all their income and losses it would be a wash for the government (basically).

[mackthefork]

[ QUOTE ]
Quote:
--------------------------------------------------------------------------------



As far as I can ascertain online pros should be paying taxes on profits in the UK, maybe if they had jobs they could reasonably argue against the presence of a profit motive, however if they were regular players I doubt even that.

Regards Mack


--------------------------------------------------------------------------------



Taxation of gambling was abolished in 2001 in the UK so citations before then are irrelevant. You're simply wrong.

[/ QUOTE ]

I hope so, I doubt it though, recreational gambling is somewhat different than professional gambling. I need to see a case of the revenue deciding that a full time internet pro is not in a trade beofre I will be happy.

Also what was actually abolished in 2001 was betting duty, it was designed to help the book making indusrty grow, and enable them to easily give more to the turf and lower margins at the same time. Cases like the ones I mentioned are decided on our badges of trade, they are used to decide if someone is in the act of a trade based on;

- The subject matter of the realisation;
- The length of the period of ownership;
- The frequency or number of similar transactions by the same person;
- Supplementary work on or in connection with the property realised;
- The circumstances that were responsible for the realisation; and
- Motive.

I will remain convinced a full time pro would be liable to income tax under Sch D until I see evidence of the opposite.

Regards Mack

[youtalkfunny]

[ QUOTE ]
If you need to find loses to off set your winnings go to a local race track and look for losing tickets. You could offset your loses as much as you win.

[/ QUOTE ]

If you ever get audited, please let me know. I'd like to be there, to see the looks on their faces when you produce bundles of tickets that have dirty footprints on them. [img]/images/graemlins/smile.gif[/img]

(My mother saves all her losing lotto tickets, beacuse if she ever wins $200,000,000 she might need a $100 write-off.)

[Jeffage]

An account should be able to set up quarterly taxes (vouchers, pre-addressed envelopes, adjustments, everything) for less than $300.

Jeff

[Easy E]

and yet lose a huge chunk to the IRS if they win a tourney (eg Hachem).

Isn't there an IRS mechinism to get a refund as a foreigner?

I agree with your point about the joke of taxing/not taxing, in general

[drewjustdrew]

[ QUOTE ]
[ QUOTE ]
If you need to find loses to off set your winnings go to a local race track and look for losing tickets. You could offset your loses as much as you win.

[/ QUOTE ]

If you ever get audited, please let me know. I'd like to be there, to see the looks on their faces when you produce bundles of tickets that have dirty footprints on them. [img]/images/graemlins/smile.gif[/img]

(My mother saves all her losing lotto tickets, beacuse if she ever wins $200,000,000 she might need a $100 write-off.)

[/ QUOTE ]

I think the IRS would look for some race wins in your records that indicate similar betting amounts to your newfound losses. I don't think they will buy the "worlds unluckiest horse bettor" argument.

[Temp Hutter]

[ QUOTE ]
What are professional gamblers in the US doing as far as taxes? How is everyone handling this? What has been done in the past and what is everyone's plan for this year? I assume most people who read this are winning poker players and maybe some sports betting (or blackjack?) pros. Any response will be helpful, but someone who's been doing for their entire source of income for a few years would be ideal.

[/ QUOTE ]

Whether you consider yourself a professional and report your income (less expenses) on a schedule C (and pay self employment taxes) or you report gambling winnings as other income on the front of the 1040 - the best advice I have is to report the income and pay the taxes. You will sleep better at night.

[lastsamurai]

read this article from ed miller

web page

Also find a good CPA