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#1
12-12-2005, 07:14 PM
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Taxes
I tried a search using 2+2's search function and also searching 2+2 with google, but neither turned up anything useful. I figured this topic had already been covered.
I don't know too much about taxes in general, so obviously I plan to discuss this all with my tax preparer, but I don't know yet how much he knows about gambling. What books are worth reading in order to learn more about the subject? I plan to file recreationally this year, but probably as a pro next year, if that matters. Thanks. 
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#3
12-12-2005, 07:49 PM
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Re: Taxes
[ QUOTE ]
I don't know too much about taxes in general, so obviously I plan to discuss this all with my tax preparer, but I don't know yet how much he knows about gambling. [/ QUOTE ] This is a key issue. I've met a bunch of tax people who know very little about the proper way to handle gambling and taxes. [ QUOTE ] What books are worth reading in order to learn more about the subject? [/ QUOTE ] First, definitely check out Russ Fox's blog on the subject: http://www.taxabletalk.com/gambling/ Fox knows this stuff as well as anyone I've met. Walter Lewis wrote a book called "The Gambler's Guide to Taxes". I haven't read it yet, so I don't know if it's any good. It probably raises some good issues. The same is true for Chien and Scott's "Tax Help for the Frugal Gambler". I haven't read it so I can't tell you if the information it contains is good, but at the very least it probably addresses important topics. I expect that both of these books are worth reading. [ QUOTE ] I plan to file recreationally this year, but probably as a pro next year, if that matters. Thanks. [/ QUOTE ] I'm not a tax professional, but my understanding is that there are both positives and negatives to filing as a pro. On the plus side, a pro gets to net wins and losses and can deduct reasonable expenses. On the down side, you have to pay self employment taxes. Without seeing numbers, there's no way anyone can say for certain whether filing as a pro would make sense in your case or not. These are probably the sorts of things you seek to learn.
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#4
12-12-2005, 08:02 PM
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Re: Taxes
[ QUOTE ]
First, definitely check out Russ Fox's blog on the subject: http://www.taxabletalk.com/gambling/ Fox knows this stuff as well as anyone I've met. [/ QUOTE ] Thanks very much for this link, and also for the book suggestions. I'll check them out. [ QUOTE ] [ QUOTE ] I plan to file recreationally this year, but probably as a pro next year, if that matters. Thanks. [/ QUOTE ] I'm not a tax professional, but my understanding is that there are both positives and negatives to filing as a pro. On the plus side, a pro gets to net wins and losses and can deduct reasonable expenses. On the down side, you have to pay self employment taxes. Without seeing numbers, there's no way anyone can say for certain whether filing as a pro would make sense in your case or not. These are probably the sorts of things you seek to learn. [/ QUOTE ] This is part of what I'm trying to learn. I am a student right now and I expect to make a good amount of money throughout the spring semester (compared to median income in OK, anyway...nothing huge). I am still debating about what I'll do after I graduate in May. I may get an engineering job, I may go to grad school, and I may not do either. Even if I get a job, I expect my poker earnings to exceed my earnings from my job for the year. If I don't get a job, then poker may be my sole source of income for the year. I certainly don't know much about the tax implications of filing as a pro, but I suspect that if it is my sole source of income, filing as a pro probably will make more sense (educated guess). I don't want to turn this into a tax thread since I'm really looking for suggestions on reading material rather than specific tax advice, but that's some of what I'm trying to learn. Thanks for your help.
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#6
12-12-2005, 08:37 PM
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Re: Taxes
Hmm good question. Online gambling supposedly illegal, then filling out tax form and paying taxes on an illegal activity?
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#7
12-12-2005, 09:55 PM
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Re: Taxes
[ QUOTE ]
Hmm good question. Online gambling supposedly illegal, then filling out tax form and paying taxes on an illegal activity? [/ QUOTE ] I don't keep up with all of the discussion related to the legality of online gambling, but I get the impression that it isn't. At the very least, no one has ever been prosecuted for it, to the best of my knowledge. That's really beside the point though. Even if you're a coke smuggler bringing in tons of the stuff every year, you're supposed to be paying taxes on that income. Legal or not, if you make money, the IRS wants their share.
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