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View Poll Results: Flop action | |||
Raises. I have the best hand; I'd like to build the pot and force out gutshots and other longshot draws. | 56 | 81.16% | |
Calls. I'll wait till the turn to raise for protection. | 12 | 17.39% | |
Folds. Villain probably has QQ and I hate losing money. | 1 | 1.45% | |
Voters: 69. You may not vote on this poll |
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#1
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Tax Questions and a Survey.
I've posted before about tax issues and poker but my questions weren't really answered and seeing how tax season is coming up, I just have a few more questions for anyone who may know.
Firstly, I'd just like to get a sense of who is paying taxes from thier poker winnings. My other question is, let's say that I decided to not pay taxes on last years winnings but then decide to pay taxes on this years winnings. I have been told, once you decide to claim the winnings, this puts up a red flag to the IRS and you should pay taxes on your winnings from that year forward because you are more likely to get caught if you don't. My question is should I be wary of being audited for last year in coming years if I decide to pay taxes at some point down the line? I appreciate any responses as I am very interested in this subject. Thank you. |
#2
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Re: Tax Questions and a Survey.
I'm sure you'll get the usual responses here: people berating you on why you should pay taxes, bla bla. Obviously it's kind of hard to disagree with them. I've been thinking a lot about this too, and to be honest, with poker's enormous popularity right now, I bet eventually the IRS will find a way to crack into the books of all the offshore casinos and find out who's made money and not paid their taxes. The IRS is probably becoming more aware of how much revenue they can collect from people, not only because poker is so popular, but because they now realize that MANY people are capable of making a living at this. Since I'm a poker player, I like to think in terms of probabilities...I don't know the legalities of how far back the IRS can check you, but if it's an infinite amount of time, well then I'd say there's a 99% chance that you will eventually get caught. Right now though? How likely it is would be anyone's guess, but I'd say if you haven't made over $200,000 yet, they won't come knocking this year or the next. If that's the way you want to look at things (well I don't have to pay right NOW, so I'm happy), then that's your prerogative. But I'm paying because I'm in this for the long run. That's the way I see it.
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#3
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Re: Tax Questions and a Survey.
From a purely practical standpoint, it's almost impossible to collect online winnings without leaving a record somewhere. You are going to have to deposit money into your checking account, cash a check, make an ATM withdrawal, or something. Even though this is not directly reported to the IRS, if they audit you, they will find it.
In live games, you are paid in cash, and unless it's a large amount, it's not reported to the IRS. If you just spend the cash, and don't deposit it into a bank account, it's quite a bit harder for the IRS to prove that you have unreported income. Of course, if you make enough in live games, and you want to buy a car or other high price item, or invest the money, you're going to leave an audit trail, and it gets to be pretty difficult not to leave a trail that the IRS can find if they look for it. So, if you make more than a few thousand a year in cash games and want to do something with that money other than stuff your mattress with it, you're probably better off paying taxes. |
#4
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Re: Tax Questions and a Survey.
bump
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#5
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Re: Tax Questions and a Survey.
My thoughts exactly. If its online, or a large casino cash, the house makes records. I'd report every penny of these.
Paid in cash, without a record? Shhhhh!! Dont be stupid |
#6
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Re: Offshore Visa
As you know the law is to pay your taxes on all money including but not limited to gambling winnings. For your questions you need an expert. I assume your tax proffessional can answer them. However, if you ever want a specialist, send me a private message, i know a lawyer who is a partner in a 100 plus person firm, and has represented some of the worlds largest gamblers and the bicycle club here in califorina.
FYI - there is an offshore visa that you can put your winnings directly into. You can get it throght partypoker (and other places). it is called epassport, and functions both as a visa card and atm. you can sign up on their withdrawl options. |
#7
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Re: Tax Questions and a Survey.
Just curious if anyone would know what I would have to report from online? If it is sitting in the cashier of the poker site does that count? What if I withdrew it from the site to Neteller then would it count? What if I moved money from Neteller to a site again, does that count as a loss and not taxable? Just curious as to when it counts as taxable, thanks in advance.
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#8
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Re: Tax Questions and a Survey.
[ QUOTE ]
You are going to have to deposit money into your checking account, cash a check, make an ATM withdrawal, or something. Even though this is not directly reported to the IRS, if they audit you, they will find it. [/ QUOTE ] Not necessarily true at all. What the IRS looks at during an audit depends on many variables. A majority of audits won't go any deeper than bank statements. jujujaja34 |
#9
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Re: Offshore Visa
[ QUOTE ]
As you know the law is to pay your taxes on all money including but not limited to gambling winnings. For your questions you need an expert. I assume your tax proffessional can answer them. However, if you ever want a specialist, send me a private message, i know a lawyer who is a partner in a 100 plus person firm, and has represented some of the worlds largest gamblers and the bicycle club here in califorina. FYI - there is an offshore visa that you can put your winnings directly into. You can get it throght partypoker (and other places). it is called epassport, and functions both as a visa card and atm. you can sign up on their withdrawl options. [/ QUOTE ] I'd just like to note that I read somewhere (I don't recall the source) that the IRS has began flagging people with funded offshore credit cards, and if they find out you have one, they'll probably look at you pretty closely. That being said, I signed up for an epassporte account a number of years ago but didn't get the card. I may have used it once or twice just deposit money into Party and haven't used it since, but from what I remember, you didn't even have to give them your real name when signing up for the account, just the name you would like to appear on the card. You could essentially get an ATM/Visa card in the name of "056382XWYZ6" or whatever and not have the account linked to your actual identity in any way shape or form. Is this still the case? If it is, you could essentially eliminate any paper trail for online poker winnings. Sure the IRS might find out that "056382XWYZ6" owes a bit of taxes, but I think they'd have a hard time collecting on that one. |
#10
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Re: Tax Questions and a Survey.
[ QUOTE ]
Just curious if anyone would know what I would have to report from online? If it is sitting in the cashier of the poker site does that count? What if I withdrew it from the site to Neteller then would it count? What if I moved money from Neteller to a site again, does that count as a loss and not taxable? Just curious as to when it counts as taxable, thanks in advance. [/ QUOTE ] Every penny you have earned online is realized income. It doesn't matter what account it is sitting in. You are required to pay taxes on all of it. |
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