Poker as a Microbusiness

[themflags]

I'm not a tax expert, but I'd be careful in this respect. I seem to remember something in the Tax Code that specifically refers to gambling earnings being taxable, and losses being deductable only to the extent of winnings. If this is the case, you would probably be risking it.

I seem to remember in the late '90s, people were trying to declare their stock daytrading as a business for similar reasons (I'm kinda fuzzy now on the specifics). But it seems the IRS did not agree with this interpretation of "business".

Tax experts are welcomed to disagree with me. In fact, please do, because I would like to deduct my expenses in this way as well! [img]/images/graemlins/wink.gif[/img]

[dana33]

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I'm not a tax expert, but I'd be careful in this respect. I seem to remember something in the Tax Code that specifically refers to gambling earnings being taxable, and losses being deductable only to the extent of winnings.

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Yes, this is correct. But I'm not really talking about deducting losses, because I can do that already and still have profit left over (assuming I continue to beat the micros on Party, which I think is a fair assumption).

Rather, I'm interested in deducting auxiliary expenses such as poker books and my internet connection (after already having deducted my losses from my winnings). Also, an added advantage I didn't mention is the new "Solo 401(K)," which allows you to shelter 100% of the income from an unincorporated business, up to $13,000.

Again, maybe there's something I'm not considering which makes this impossible. OTOH, if poker can be a full-time business for some people, why not a part-time business for others?