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  #1  
Old 11-30-2005, 03:05 PM
roundest roundest is offline
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Default Dannenmann interview on espn.com

linky
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  #2  
Old 11-30-2005, 03:31 PM
Hauser_III Hauser_III is offline
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Default Re: Dannenmann interview on espn.com

That's a great explanation of the Lederer phone call hand. Context is everything.
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  #3  
Old 11-30-2005, 03:47 PM
henrikrh henrikrh is offline
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Default Re: Dannenmann interview on espn.com

How much is the government taking in tax??!!? 4.5 million, half, so 2.25 million gets taxed down to 1.3 million?!?!!?!? Is that legal?
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  #4  
Old 11-30-2005, 03:53 PM
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Default Re: Dannenmann interview on espn.com

That's pretty standard for gambling winnings in the US. It's a "luxury tax" at a very high rate.
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  #5  
Old 12-01-2005, 06:27 PM
Miles Ahead Miles Ahead is offline
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Default Re: Dannenmann interview on espn.com

[ QUOTE ]
That's pretty standard for gambling winnings in the US. It's a "luxury tax" at a very high rate.

[/ QUOTE ]

It's not a luxury tax. It's treated as ordinary income, and it bumps him up to the highest tax bracket: 35%.

The state tax bracket (in Maryland) for him is 4.75%.

39.75% of 2.25 million is $894,375, which leaves him with $1,355,625.
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  #6  
Old 12-01-2005, 06:29 PM
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Default Re: Dannenmann interview on espn.com

I have my income tax book right in front of me.

"Gambling payoffs, no matter how large or small, are taxavle and should be reported on your federal income tax return. This includes the fair market value of noncash prizes such as cars, trips, and dinner coupons. The provision applies to winnings from all sources, from casinos to office pools."

The amount is added into your gross income broadly concieved. You can deduct your gambling losses only to the extent of your gambling winnings. If you are a professional gambler, meaning you derive your income from gambling and have no other job, you may deduct gambling losses beyond the extent of your winnings. Steve Dannenmann is in the highest federal tax bracket so his taxes on his winnings would of been 35% for federal income taxes plus whatever his state income taxes are.

[ QUOTE ]
Can you pay a different amount if you are a professional gambler? Like pay as if you were a business and not a lottery winner?


[/ QUOTE ]

To sum up, no. Your tax rate would be the same as a plumber or a lawyer or anyone else when it comes to personal income. However, the difference is that as a professional gambler you may deduct losses beyond your winnings, so if you have a down year you could take a loss on your business. I am not exactly sure what benefits you would get from doing this though.

I would also imagine as a professional gambler you could write off things like airfare to travel to the casino/tourny/whatever, and all costs associated with gambling online like your internet, computer, etc. However, in order to write off your computer you would have to prove it is used for money making purposes only.
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  #7  
Old 11-30-2005, 03:57 PM
ianlippert ianlippert is offline
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Default Re: Dannenmann interview on espn.com

He had to give half to his backer. So they went home with 2.6 Mil. I think 50% tax is the norm on winnings.

What I wanna know is how you can be a pro tourney player when half of your winnings are given to the government? Its like a 50% rake!!!
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  #8  
Old 11-30-2005, 03:58 PM
ianlippert ianlippert is offline
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Default Re: Dannenmann interview on espn.com

oh i miss read your post, nm
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  #9  
Old 11-30-2005, 04:17 PM
henrikrh henrikrh is offline
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Default Re: Dannenmann interview on espn.com

How boutch Hachem? He's an international, no tax for him?
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  #10  
Old 11-30-2005, 04:30 PM
CrazyN8 CrazyN8 is offline
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Default Re: Dannenmann interview on espn.com

[ QUOTE ]
How boutch Hachem? He's an international, no tax for him?

[/ QUOTE ]
oh, you know Uncle Sam got him a piece of that pie!
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