Hypothetical: Reducing gambling winnings by "losing"?

[thwang99]

No, I'd cash out this money, and play a "live" game with him, and lose this cash to him. Just me and him, at home, or whatever. No need to be online, or do the transfer online. No need to play in a live casino either. Just a home heads-up game. He'd start wiht say $100, me with $100k, and he'd bet $99, I'd call, then he'd bet $1, and I'd fold. Repeat until I've given him $100k.

I want to add that this could be seen as collusion, but it's headsup, so it's not hurting anyone. Also it's not a tournament. And it is chip dumping, but again, cash game, headsup. No one else playing, and it's not a tournament.

- Tony

[thwang99]

Yes, it would be a kitchen table game. Sorry should have made this clear, but I guess posting it here makes people assume this would be done online. Let's say X is $150,000 and X' is 149,999.99 to make a point.

Basically what it's doing is instead of winning X, and being taxed on X, then giving a gift of X', and being taxed on X' (almost double taxation by a penny), what this would do instead is I'd win X-X', get taxed on that (basically taxed on a penny gambling profit), and my brother would win X', and get taxed on that.

We'd both get taxed but the total amount we'd be taxed on is X, which is what I won, instead of being basically double taxed, once on X, then on X' (which is basically X).

In my hypothetical example above I'm using $150k and $100k, so it's double taxation on $100k, while I pay single taxation on $50k.

- Tony

[thwang99]

Hi Husker,

Many posters assumed I was talking about doing this online at a online poker table.

That's not the case, I was talking about doing it at a kitchen table (my brother and me's home), a cash game. Would you still consider this chip dumping, since there are no chips (we'd bring cash, my brother and I, and buy chips, or just play with hundred dollar bills). Course, I'd have to cash out $100k from my checking, and my brother would be depositing $100k into his, at a future point.

Basically a huge cash game. If needed we could do this at a state where home poker is legal.

Disclaimer: Note that I'm not doing this, this is just a question I'm curious about what people thought of ethically, I'm pretty sure it's questionable legally, even though on the surface everything seems legit.

- Tony

[Lori]

I'm pretty sure there have been WSOP events where Brits have been given better deals because of their tax exemptions.

The clear implication that this deal was rectified at a later stage.

Lori