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#1
07-28-2004, 03:13 PM
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I talked to tax adviser today
Actually two. They both gave similar advice, but one seemed much more knowledgeable about gambling in general.
According to him, when you buy into a site you don't have to report winnings/losses until you convert back to currency, since while it's in your Party account it's "chips". So, when you deposit money into Party you don't have to claim it until you pull it back to your Neteller account. To me, then, that seems to indicate that depositing money to a site constitutes the start of a session and withdrawing back to Neteller would end the session. The biggest issue for most of us, though, is estimated taxes. This was said before, but if your tax bill is going to be $1000 more than the taxes you've paid throughout the year you're going to get penalized. 25% of your estimated winnings is a good guide. Estimated Taxes 
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#2
07-28-2004, 03:52 PM
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Re: I talked to tax adviser today
According to him, when you buy into a site you don't have to report winnings/losses until you convert back to currency, since while it's in your Party account it's "chips".
I doubt that this is true. When you win something, you have to pay tax on the value of what you have won. If you win a car you can't avoid taxes by not converting it to currency, i.e. selling it. Lost Wages
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#3
07-28-2004, 04:04 PM
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Re: I talked to tax adviser today
It is true. There is a big difference between a car and some electronic blips on a poker site, or some clay chips in a casino.
And if you do win a car -- you should pay taxes based on what a reasonable amount is that you could get for the car should you sell it -- not what the contest people tell you the car is "worth".
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#4
07-28-2004, 04:12 PM
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Re: I talked to tax adviser today
[ QUOTE ]
According to him, when you buy into a site you don't have to report winnings/losses until you convert back to currency, since while it's in your Party account it's "chips". I doubt that this is true. When you win something, you have to pay tax on the value of what you have won. If you win a car you can't avoid taxes by not converting it to currency, i.e. selling it. Lost Wages [/ QUOTE ] But if you are correct you would need to document every hand as a win or a loss. Each hand would then be a session.
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#5
07-28-2004, 04:15 PM
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Re: I talked to tax adviser today
There is a big difference between a car and some electronic blips on a poker site, or some clay chips in a casino.
I disagree. $100 added to your Party account is worth exactly $100 dollars. A $100 dollar chip is worth exactly $100. Say I win $100,000 playing blackjack at Bellagio in December. Do you really think that I can avoid paying taxes for an entire year just by waiting until January to cash-in my chips? Lost Wages
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#6
07-28-2004, 04:19 PM
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Re: I talked to tax adviser today
It is my understanding that the courts have ruled that the results of a single sitting at a table game constitutes a session.
Lost Wages
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#7
07-28-2004, 04:19 PM
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Re: I talked to tax adviser today
[ QUOTE ]
According to him, when you buy into a site you don't have to report winnings/losses until you convert back to currency, since while it's in your Party account it's "chips". I doubt that this is true. When you win something, you have to pay tax on the value of what you have won. If you win a car you can't avoid taxes by not converting it to currency, i.e. selling it. [/ QUOTE ] By the "chips" logic, that seems to suggest that if I went to Vegas for New Years Eve, win a pile of money and fly home with the chips in my pocket, it would not count as a complete session (i.e. no taxes this year)? Doesn't seem to add up. However, I've heard that if you win more than 1K or 10K or something, the casino automatically reports it and hands you an IRS form. They don't do that until you cash out your chips to cash, right?
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#8
07-28-2004, 04:20 PM
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Re: I talked to tax adviser today
I believe it is true. Anyone who was an Anthem health insurance customer was given 25 shares of their stock when they went public. I have the stock but don't have to pay any taxes on it until I cash it out. I'm no broker, accountant, lawyer, blah blah blah, and maybe I'm evading taxes, I dunno.
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#9
07-28-2004, 04:26 PM
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Re: I talked to tax adviser today
[ QUOTE ]
I believe it is true. Anyone who was an Anthem health insurance customer was given 25 shares of their stock when they went public. I have the stock but don't have to pay any taxes on it until I cash it out. I'm no broker, accountant, lawyer, blah blah blah, and maybe I'm evading taxes, I dunno. [/ QUOTE ] The stock has no firm value since it may fluctuate from day to day wheras the chips are worth exactly what they are worth. This is where the comparison of stacks to chips fails to pass muster. Before someone says" hey! How about fluctuations in currency conversions?" Well you are just SOL if you fail to choose to convert your dollar amount when the session ends. In other words the tax advisor referenced in the first post has no clue. Of course since you will pay the fines I doubt if he cares much at all.
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#10
07-28-2004, 04:28 PM
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Re: I talked to tax adviser today
[ QUOTE ]
It is my understanding that the courts have ruled that the results of a single sitting at a table game constitutes a session. Lost Wages [/ QUOTE ] So if a player plays 3 tables at once each and every time they switch a table they have ended and begun a new session. Do multitablers average 15-25 sessions a day?
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