I DO NOT WANT TO PAY TAXES... HOW DO I REDUCE THEM

[FatTony21]

FYI, Rich Dad is actually a fictional character, and most legal tax loopholes have been closed. Some ways to reduce your income tax if you file as a professional gambler:

SEP IRA - probably the best way to reduce taxes. 25% of your income up to 40K per year may be tax deferred

Gambling Expenses - ISP, magazines, software, books, etc..computer equipment if it's used primarily for online gambling

As for some less ethical ways...

Travel expenses - do you travel to play in live games? If so, the travel expenses are deductable. As long as there is a casino at your vacation destination, you may be able to get away with expensing the vecation.

Gambling losses: anything online probably has an electronic paper trail once it leaves the poker site. Even if you transfer to a bank outside the US, most countries have tax treaties with the US and will report this. Do you play in live games, or gamble at other table games? If you don't make a 10K transaction within a 24 hour period, the IRS can do little to track it. It's possible that you made a lot online, but had a bad year playing blackjack...

If you file as a professional gambler, the probability of being audited is high. It's up to you to decide if the risk of tax fraud is worth paying less income tax.

p.s. I am not a tax professional, and this is not advice.

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FYI, Rich Dad is actually a fictional character, and most legal tax loopholes have been closed.

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Plus, Rich Dad "avoided" paying income tax because he didn't actually have that much income - he kept most of his money tied up in investments, and even then the taxes don't go away, they're just deferred until the investments are liquidated.

You can find out more by purchasing the other 1,000 "Rich Dad" books, tapes and DVD seminars. (Wonder how the author REALLY got rich...?)

Unfortunately, past an IRA there probably aren't many options for hiding away your gambling income, since it's liquid to begin with. As others have said, you'll want to take as many legal deductions as you can - and one of those should be the fee for a good tax accountant.

And I'm not a tax lawyer either.