innovative tax and bankroll theory??

[revlis87]

so i pay my taxes... i think people who don't are A) dumb and B) cheating the system. However, consider this.

Taxes need only be paid when they enter a bank account that the government can trace - like a savings account or a checking account. I.E something is taxable once it offficially enters into your income stream. I dont know quite how to articulate this, but I hope that makes sense.

As such... considering everyone is always talking about building a bankroll and being able to handle the swings, does it not make sense to NOT put your money into a bank account yet. if you want to cash out, why not leave the money in a firepay account. It is always there and your bankroll will build upon itself more quickly this way, no?

At the end of the day, you might say that you will end up paying more because if you make 33k a year playing poker instead of paying taxes on 33 k you will be in the 100 k bracket after 3 years. You could, however, just report the income as 33 k a year for 3 years ... i suppose you dont even need a firepay account and you could just keep it in your poker accounts anyway. Thoughts? is this legal? is it smart?

[Cactus Cactus]

that would make sense, but you do owe taxes on the money that is in your poker accounts. Some CPA here said that one of his clients was audited, and they asked for his password to his online poker account. When he denied they charged him with a consealing of evidence charge.

There's no way around it

[sdc]

ouch

they take it that far

is it possible for them to know i have 15 accounts on various sites

what if i give them passwords to the 5 I lost my ass on?


My thinking was similar to the OP

I planned on reporting what I transfer into my bank account

[DuggleBogey]

If you have withdrawals from the site directly to your checking account, they might figure it out....

[mtgordon]

How is the money on the poker site different from that money in Neteller or the like. It seems like it still hasn't entered a US bank account.

[wmspringer]

[ QUOTE ]
How is the money on the poker site different from that money in Neteller or the like. It seems like it still hasn't entered a US bank account.

[/ QUOTE ]

It really isn't.
You owe taxes on the money you've earned, no matter where it is.

[RunDownHouse]

Wow. That IS innovative. How come nobody else has thought of that?

We'll need a sticky to handle this type of stuff come March/April.

[TomR]

[ QUOTE ]
so i pay my taxes... i think people who don't are A) dumb and B) cheating the system. However, consider this.

Taxes need only be paid when they enter a bank account that the government can trace

[/ QUOTE ]

ROFLMAO

[AceHigh]

[ QUOTE ]
Taxes need only be paid when they enter a bank account that the government can trace - like a savings account or a checking account.

[/ QUOTE ]

I agree, it's sort of like capital gains on real estate or stocks. You don't pay until the gains are realized.

However that's not how live poker players pay taxes. Course we can argue that there money is readily available to them and not to us.

I don't believe anyone can say for sure how the IRS will view the situation, it may depend on the agent reviewing your records.

[Indiana]

What if you transfer from NetTeller to the Cayman Islands. They can't trace that right? So you can just wait till it gets to 1 million dollars and the worry about taxes

Indy