Internet poker and taxes and moving abroad.

[cardcounter0]

it was sports betting online in Montana, and the guy ran afoul of State Law, not Federal. So don't do any online sports betting in Montana. [img]/images/graemlins/grin.gif[/img]

[MicroBob]

i only briefly caught the sports-betting guy article several mths ago.
i really thought it was north dakota though and it was from his STATE-income tax not the federal.
if i recall correctly, the judge pretty much laughed at the silly case. he said, 'this is what i do...i was just trying to dutifully pay my taxes' and he got off with probation and then moved to KY where the laws are friendlier.

again, this is just the best i can do from memory.

[MicroBob]

ANYBODY wondering about schedule-C's and whether you can do this and how do you go about it should get the book
Gambler's Guide to Taxes by walter Lewis.
it does not specifically cover internet-gambling....but does give ideas on how to file as a professional-gambler (poker, BJ, horse-race handicapping, etc) and even gives a couple of court-cases that set the precedent for some of this stuff.


I will be filing a scehdule-C as a professional gambler this year.
among my deductions:
my new laptop
phone-bill (dial-up access)
ISP bill
pokertracker purchase
2+2 books
mileage to B&M poker-rooms when my purpose was for poker-playing ($0.36/mile I believe)
possibly also the iced-lattes I purchase when I meet with friends at my internet-coffee place whom I'm givng poker lessons to (will be looking into that one)
if i decide to take a trip to Vegas I should be able to deduct the expenses because poker-for-income will be a significant part of the trip.

I specifically waited until January to get my new laptop because I suspected I might leave my job and take up online-poker full-time (which I did in early April).


This thread is somewhat interesting to me because I may choose to live abroad for a year or two if this internet-poker thing continues to go well. This wouldn't be for tax-dodging purposes but just because I have the urge to travel in my blood.

Before renouncing one's citizenship or rolling the dice with this one should always consider the 'bad-beat' possibility that the online-poker fad/craze will fade/die in the coming years.
Personally, I don't think it will happen....but that doesn't mean I have 100% confidence that it will continue to be ultra-profitable.

If the US gets nutty about the legislation aspect the games will be significantly drier without the casual american-novices. again, i don't think it will happen, but i acknowledge it's a possibility.

[Nightwish]

The only catch with filing as a professional gambler is that, if audited, the IRS may expect you to prove that you are in fact a professional gambler. This means that you must show a long-term winning record (ideally at least 3 of the last 5 years) and prove that you are in fact in the business of gambling. That means you must diligently maintain a log of your gambling wins/losses. It would also help to get a business address (a PO box) and maybe even business cards.

[jek187]

So, I go away for awhile and come back to see this pile of trash is back? Mary, crawl back to your shithole site and work on finishing turning it into a complete graveyard. If you stay around here much longer, you'll be banned a 3rd time. And I imagine that would be embarassing even for an unscrupulous hag such as yourself.

well . . . uh . . .fine. . .but how do you REALLY feel about her? [img]/images/graemlins/grin.gif[/img]

[solring]

[ QUOTE ]
i only briefly caught the sports-betting guy article several mths ago.
i really thought it was north dakota though and it was from his STATE-income tax not the federal.

[/ QUOTE ]
Yes, it was North Dakota, and yes it was his state income tax. Here's the article from Cardplayer Magazine, 10 Oct 2003

[Zinzan]

[ QUOTE ]
the key is always to do taxes two ways. First do taxes the way you think IRS agenst would do them. Then be as aggressive as you can without being fraudulent...

[/ QUOTE ]

I believe just owning this "second set of books" is a risk. It better be locked up in a very secret place, and you better be able to burn it at a moment's notice.

-Z

[Blindfolk]

Slovenia has a program where they finance poker players to play online and in tourneys.

[collegeplayer1]

(i have only read the original post)

First of all, I think you sound like a moron. You are going to make between 200-300K? That is quite a gap. Give us an idea of where you play, what games you play, and your win rates. How long have you been playing?

If you give up your citizenship you cant travel to many countries. If you are making that much, why not jsut pay your taxes? If you want to completely hide the money, risking jail, jsut set up a bank account outside US and ahve all funds go through that account straight from the sites. Do not use neteller. you wont be able to show money. you cant buy a jaguar or a house.

okay now for some positive advice. internet is availible all over the world. you just have to work through details like visas. i am currently in thailand. im thinking of buying a laptop so i can play in cafes and not have to worry about someone hacking my info.

must people in society dont have any balls. they live in fear. yes, ia m 18. no i dont give a [censored] about college right now. yes, i am traveling the world making alot of money playing poker. yes, i am having alot of sex. yes, i live each day to the highest capacity.

its your life and your choice. [censored] or get off the pot.

ps: the name i choose was intentional irony. so ssh!