Tax Question

WebGuySteve · #1 06-02-2005, 03:07 PM

I know this has been discussed before, but, I can not find anything useful using the search function (surprise, surprise) I come to you guys since this is where I lurk most often, and sometimes post.

I have started earning enough money to start claiming income for taxes for 2005. I plan to do this right, or at least more or less right. I have tried to talk to accountants, but they kind of just agree with me, and offer no real advice. What do you guys do, and how is it done?

I have heard that you file as a small business and pay roughly 30%. If I do this, but claim say, 75% of my income, or 50%, what risk, and penalties are there for doing such?

Thanks for any help you guys can give, and feel free to flame away as I know this can get very subjective [img]/images/graemlins/frown.gif[/img]

pineapple888 · #2 06-02-2005, 04:33 PM

This is a non-trivial topic and has little to do with poker specifically. Here's a good place to start:

http://www.nolopress.com/product.cfm...1/111/#summary

Eevee · #3 06-02-2005, 04:48 PM

Another good place to start

WebGuySteve · #4 06-02-2005, 05:46 PM

Thanks, this is somewhat helpful, but is this the proper way to file for a poker player?

WebGuySteve · #5 06-02-2005, 07:04 PM

All these thread views and only one person can help me out? Is there a better forum for this question?

DasLeben · #6 06-02-2005, 07:09 PM

You might try the Zoo. I dunno.

pineapple888 · #7 06-02-2005, 07:15 PM

This is the wrong forum for tax questions. The proper forum is your accountant's office. But since I am involved...

Is *what* the proper way to file?

You can report income as miscellanous gambling winnings. I've heard that is a poor option because of weird IRS rules regarding gambling. But it might work for you.

Or, you can report it as small business income, and there are lots of ways to do that. Sole proprietorship. LLC. "C" corporation. "S" corporation. Probably others. It's a complex issue based on your personal situation.

You also essentially asked the best way to cheat on your taxes, and I'm afraid I can't help you there.

WebGuySteve · #8 06-02-2005, 07:35 PM

Ok, thank you, this is really what I wanted to know. I wasn't sure if filing as a small business for a poker player was cool. Thanks for the help!

microbet · #9 06-02-2005, 07:44 PM

I should just send you here , but you might check this out as well.

Degen · #10 06-02-2005, 08:03 PM

wow great article micro

first thing i've ever read that was written authoritatively....usually its all 'it could be' and 'this might happen'

cheers

Andre