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#1
12-14-2005, 12:27 PM
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Is r***back taxable income?
If considered a type of rebate, then maybe not. But if one conceives of it as essentially returning some of your winnings, then it probably is.
Does anyone know definitively one way or the other? 
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#4
12-14-2005, 12:41 PM
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Re: Is r***back taxable income?
If you are a winning player, it is taxable. This is because when you add up all your winnings and losses for the year, you are adding up only those numbers NET of the rake charged. Hence any additional income you get back from rakeback is true income to you.
But if you're a losing player, I would argue that it is merely a rebate of fees you've paid, which would not be taxable. What I would do is simply report each month's rakeback as just another winning session. That way, if you're a winner, you'll pay taxes on it appropriately enough. If you're a loser, it'll be partly or totally offset by your losses.
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#5
12-14-2005, 01:21 PM
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Re: Is r***back taxable income?
[ QUOTE ]
If considered a type of rebate, then maybe not. But if one conceives of it as essentially returning some of your winnings, then it probably is. Does anyone know definitively one way or the other? [/ QUOTE ] I don't get why people can't grasp the fact that it's income. Look, if you 8 tabled at 2/4 all year and made 0BB/100, but made $80,000 in rakeback, do you really thing you haven't made taxable income? Give me a break, you made 80 grand. Pay taxes on it.
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#6
12-14-2005, 01:44 PM
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Re: Is r***back taxable income?
[ QUOTE ]
[ QUOTE ] If considered a type of rebate, then maybe not. But if one conceives of it as essentially returning some of your winnings, then it probably is. Does anyone know definitively one way or the other? [/ QUOTE ] I don't get why people can't grasp the fact that it's income. Look, if you 8 tabled at 2/4 all year and made 0BB/100, but made $80,000 in rakeback, do you really thing you haven't made taxable income? Give me a break, you made 80 grand. Pay taxes on it. [/ QUOTE ] Singned, Accountant
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#7
12-14-2005, 02:02 PM
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Re: Is r***back taxable income?
[ QUOTE ]
[ QUOTE ] If considered a type of rebate, then maybe not. But if one conceives of it as essentially returning some of your winnings, then it probably is. Does anyone know definitively one way or the other? [/ QUOTE ] I don't get why people can't grasp the fact that it's income. Look, if you 8 tabled at 2/4 all year and made 0BB/100, but made $80,000 in rakeback, do you really thing you haven't made taxable income? Give me a break, you made 80 grand. Pay taxes on it. [/ QUOTE ] Yeah, but what if you lost 100K for the year. In the course of losing that 100K, you paid about 240K in rake. In this case, the rakeback could just be considered a partial rebate of fees you've paid.
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#9
12-14-2005, 05:32 PM
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Re: Is r***back taxable income?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] If considered a type of rebate, then maybe not. But if one conceives of it as essentially returning some of your winnings, then it probably is. Does anyone know definitively one way or the other? [/ QUOTE ] I don't get why people can't grasp the fact that it's income. Look, if you 8 tabled at 2/4 all year and made 0BB/100, but made $80,000 in rakeback, do you really thing you haven't made taxable income? Give me a break, you made 80 grand. Pay taxes on it. [/ QUOTE ] Yeah, but what if you lost 100K for the year. In the course of losing that 100K, you paid about 240K in rake. In this case, the rakeback could just be considered a partial rebate of fees you've paid. [/ QUOTE ] *strangled noise* So what? What do fees paid, and rebate on them, have to do with it? You lost $100k gambling and gained $80k because you're smart enough to sign up for rakeback. IT'S ALL GAMBLING INCOME! I don't pretend to be a CPA, but trying to magically wish the IRS didn't see any and every gambling related monetary gain as taxable is insane. If you've got enough losses to offset that gain, then you're simply not likely to owe tax on the gambling related money. Doesn't matter if it's rakeback, winnings, losses, lottery tickets, whatever, it's all gambling income/loss.
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#10
12-14-2005, 07:58 PM
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Re: Is r***back taxable income?
Yes its taxable income, it would not be if you paid taxes on it as it went out, much like one does on life Ins.
Once might fight that it is a capital gain. if you are a pro you might fight that its part of Business exp. witch gets deducted to get gross adjusted income, and they pay a the 15% tax on CG
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