Taboo Question? - Page 2

MAxx · #11 08-31-2004, 12:56 PM

i won't address that. i don't claim that they can or cant. ignoring your tax obligations is an indivual legal &/or moral choice. I cannot ignore. i also don't judge anyone for how they report or ignore taxes.

MAxx · #12 08-31-2004, 01:04 PM

Bob, you have a good suggestion for the masses to get an accountant.

The interpretation of cashout's & deposits sounds a little shady... but I will stop there b/c I don't want to offend you and i don't have absolute knowlege of this area. I would realy like ask your accountant where he got the basis for his interpretation, but I don't want to put you or him on the spot.

StellarWind · #13 08-31-2004, 01:09 PM

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If you are not a pro, and you itemize deductions you basically have similar position to pro but your losses are not dollar for dollar b/c they are subject to schedule A limitations

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Another problem is that some states disallow deducations for gambling losses for state income tax purposes. They tax the winnings and don't allow any form of offset for losses unless you file as a professional.

StellarWind · #14 08-31-2004, 01:11 PM

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I live in Canada so have nothing constructive to add but I do have a question.

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How does it work in Canada?

arkady · #15 08-31-2004, 01:14 PM

very simply, they don't pay taxes on gambling profits.

prayformojo · #16 08-31-2004, 01:18 PM

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very simply, they don't pay taxes on gambling profits.

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Unless you are a professional gambler.

Vazh · #17 08-31-2004, 01:46 PM

I've talked to an accountant too, and Bob is correct. The key is that when you buy into a site your cash is converted to "chips". When you transfer your money back to Neteller it's then converted back to cash. It's this transaction that you have to report.

Bob T. · #18 08-31-2004, 01:53 PM

The interpretation of cashout's & deposits sounds a little shady... but I will stop there b/c I don't want to offend you and i don't have absolute knowlege of this area. I would realy like ask your accountant where he got the basis for his interpretation, but I don't want to put you or him on the spot.

I don't know, but we discussed it a couple of years ago, and I believe that he got an opinion from the IRS. I don't worry about it, because that's his job. The cashin, and cashout interpretation does make the paperwork a lot easier though. I play PT and sit on well over 1000 tables a year, that would take a lot schedule A sheets to list all of the losing tables.

Usually, near December and April there is a lot of discussion of this in the other topics forum. You might want to search the archives to see what you can find.

MAxx · #19 08-31-2004, 01:55 PM

Thanks for the advice in general and also about looking through the arcives, will do. I am going to try on look into this cash in cash out idea a little further... probably by finding a knowlegeable tax accountant. If I could use that approach it would be incredible for my results. It just sounds too good to be true.