Anyone over 6 figures actually filing as a Pro?

[MVicuna]

Hi,

Can you explain how the IRS defines "Gambling Professional" then please?

Thanks,
MakrV.

[Wake up CALL]

Here are the IRS instructions for Schedule C which you will fill out if you are willing to declare gambling as your businss.

[Wake up CALL]

[ QUOTE ]
Hi,

Can you explain how the IRS defines "Gambling Professional" then please?

Thanks,
MakrV.

[/ QUOTE ]

I tried searching for an old post I made a year or so ago but do not know how to search in the archives so I will use my memory.

You must show a profit at least three out of the last five years. You will see how tricky this is on it's face the first two years. Otherwise the IRS may declare your profession a hobby.

In years past gabbling had to be your primary income. Since at least one person has won that challenge in a tax court, however the IRS does not consider this a precedence and must be challenged on a case by case basis.

These are the two largest hurdles for most people. The other provisions of qualifying as a for profit business apply as well and can be easily found on the IRS website.

[Wake up CALL]

Here is another good link:

IRS Business vs Hobby

[Packerfan1]

What legal alternative exactly do you suggest that would be better than filing as a pro in this simple case?

Pack

[MicroBob]

[ QUOTE ]

You must show a profit at least three out of the last five years.

[/ QUOTE ]


I know nothing of taxes really so I will certainly listen to what you have to say.
But I find it very difficult to believe that this is entirely the truth.

I wasn't even playing AT ALL 3 years ago.
Currently it is my SOLE SOURCE of income.

2002 -
Had never played before.

2003 - I barely showed a profit. lost at the beginning of the year after just learning the rules. filed just a little bit of profit as a recreational gambler just to 'establish' myself as a gambler because I thought there was a good chance I would be quitting my 'regular' job pretty soon to do this full-time.

2004 - Quit my job in April. Have been playing full-time ever since. 2004 I filed as a 'pro' (schedule C). 2003 was the ONLY year I had ever played prior to that. It would have been impossible for me to have shown a profit in 3 of the previous 5 years.


We'll see if the IRS comes after me.
I've seen others reference that 3-out-of-5 years bit before...and it just doesn't make a whole lot of sense to me since I suspect I'm not the only person who has taken a path such as mine.


What if I had just turned 21 and decided I wanted to play poker in a B&M full-time?
I don't get to file as a pro because I wasn't illegally going to the casinos since I was 16??


Again - I'm not an expert on any of this stuff. Just pointing out some flaws here (...the tax-code might be flawed?? No way!!!!)

[fooz]

Unemployed?

[MVicuna]

Hi,

Thank you. I appreciate your response.

Thanks,
MarkV.

[MEbenhoe]

So what happens when I file my taxes this year and basically all my income is from poker, but I'm only 20?

[theblitz]

You should come and live in Israel.
Here gambling profits are taxed at only 25%.

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