Taxes on Charity Tourney Prize Wins

GrunchCan · #1 01-04-2005, 04:43 PM

I'm thinking of entering this WSOP satellite in Chicago:

This is a charity event, so there aren't any cash prizes. But the grand prize is a seat at the WSOP ME.

I'm wondering, what are the tax implications of winning this event? If I win the $10,000 seat, is that recorded as $10K of income, on which I have to pay income tax?

snowbank · #2 01-04-2005, 07:04 PM

Your taxable income would be the fair market value of any benefits received minus your charitable contribution.

Cazz · #3 01-04-2005, 09:42 PM

IF you can count the win as "gambling income" and you play in the WSOP in the same year and lose, then you should have $10K in gambling losses. You would get a $10K deduction to offset the increased income.

You need to ask someone smarter than me if this counts as gambling winnings.

If you win big at the WSOP then you definitely owe some taxes, but that is a good problem to have.

GrunchCan · #4 01-04-2005, 11:31 PM

Just the answer I was looking for, thanks. I guess paying $3,500 for a WSOP ME seat isn't such a bad deal...