Offshore gambling and tax implications?

**wombat** · 01-07-25, 09:58 PM

You have another year to figure it out because IRS delayed crypto reporting until next year.

**alecmatt5** · 01-08-25, 09:18 AM

Are you an IRS agent? What even is the point of this post? You made this account to let us all know that we need to pay taxes on crypto or...?

**raiders72001** · 01-08-25, 05:05 PM

Get an accountant, let him figure it out and pay your taxes.

**YoshisRage** · 01-08-25, 07:37 PM

no I am just confused

**YoshisRage** · 01-08-25, 08:09 PM

Offshore gambling and tax implications?

I made 13K in money from a 250 crypto deposit on betonline. I live in a state that gambling is illegal. (Yes I get numerous people bet on sites like bovada or betonline, bookmaker in which those bookies don't report to IRS). So my question how do I exactly get this money to me. Literally the bookie sends me let's say 5k etherum then few days later 4k DOGE so I have a total off 9k in my wallet. The crypto exchange doesn't know where this money came from for all they know it could of just came from another wallet, a friend gifted it to me, or I could of got it from a sugar daddy.

My question is if I transfer to my bank what do I technically owe in taxes? all of the 9k of crypto or the capitol gains on it if both coins go up in value when I cash out . Let's say both Etherum and DOGE went up and I got 10k . Am I only going to pay taxes on the 1k capitol gains or the 9k. Remember the 9k they don't know came from my gambling winnings it could just a friend let me borrow money. ( YES I GET you have to pay money on tax winnings not trying to tax evade just seriously confused since it's such a grey area). Since you never bought the 9k coins yourself it's like you getting money in zelle??

Scenario 2:

So what if my 9k from bookie and prices of Etherum and Dodge dropped to 8k so if I cash out I have -1000 capitol loss, I don't owe any taxes? This crap is so confusing. Honestly this isn't even reported by bookie only way it shows anything because it hit coinbase or kraken and the price changed triggle taxable events . If you just wire like 2k or monney-oorder low amounts from the offshore bookies then no one can find out anything??

**Optional** · 01-08-25, 08:18 PM

Originally posted by YoshisRage

no I am just confused

Re your original post.

1) They can tell that you were paid by a bookmaker if they decide to investigate the transaction. Google how they can trace that if you want to double check this info. But the exchange definitely can if they chose to.

2) You only pay tax on the capital gain from the time you received until the time you sell it. So if you sell as soon as you receive there is no taxable event as I understand it in most states. But you really need to check this with someone who knows the rules for sure in your jurisdiction.

3) For a bettor just using crypto as a payment method there probably isn't going to be enough tax on it to care about trying to hide it.

**VeggieDog** · 01-08-25, 09:46 PM

Google search. Some reports say they're getting more aggressive going after tax cheats. Other reports say the irs is massively underfunded and understaffed and can't process a lot of audits.

If you're going to underreport your income, now is probably a good time. YMMV.

**YoshisRage** · 01-08-25, 09:54 PM

How can they trace something when Crypto are having numerous insane transactions per day. Moving or cashing out 4k 8k is mere pennies with other huge type of trades going on. How would they even know you got paid. I sometimes get zelle payments or payments from family in the 7k or even 30k range. Anyways not even trying to hide anything it's so complex to understand. They only investigate if they have a reason to which they shouldnt if it's not even reported to them.

**YoshisRage** · 01-08-25, 10:02 PM

This has nothing to do about under reporting this is more to understand to file it right or find a tax loophole. If I give you right now 8k in Bitcoin and you cash it all out you only will get taxed on the capitol gain. If you cashed out and Bitcoin went to 8.3k you only taxed $300. The 8k you got isn't income it's money i just you because just wanted to help you or is gift. Would this be the same situation if I got crypto from a bookie ? Yes obviously if they snoop around is when they would ask who gave it ? Who is this friend ? First they would need a reason to snoop around in the first place. These freaking tax laws make no freaking sense. I didn't know a single casual bettor who tracks every single bet win or loss. Sometimes over the course of the year we place over 1500 bets. Usually isn't a problem because most gamblers lose it all but there are a few minority that do go a mini hot streak or profit and cash out before they blow it all.

**Optional** · 01-08-25, 11:02 PM

Originally posted by YoshisRage

How can they trace something when Crypto are having numerous insane transactions per day. Moving or cashing out 4k 8k is mere pennies with other huge type of trades going on. How would they even know you got paid. I sometimes get zelle payments or payments from family in the 7k or even 30k range. Anyways not even trying to hide anything it's so complex to understand. They only investigate if they have a reason to which they shouldnt if it's not even reported to them.

There are services that forensically analyze the blockchain records and trace the path of the coins and work out what wallets are connected and where and how coins are conglomerated when sent to an exchange and what sort of activity the user is probably conducting. Bookmakers are very easy to spot this way.

Originally posted by YoshisRage

This has nothing to do about under reporting this is more to understand to file it right or find a tax loophole. If I give you right now 8k in Bitcoin and you cash it all out you only will get taxed on the capitol gain. If you cashed out and Bitcoin went to 8.3k you only taxed $300. The 8k you got isn't income it's money i just you because just wanted to help you or is gift. Would this be the same situation if I got crypto from a bookie ? Yes obviously if they snoop around is when they would ask who gave it ? Who is this friend ? First they would need a reason to snoop around in the first place. These freaking tax laws make no freaking sense. I didn't know a single casual bettor who tracks every single bet win or loss. Sometimes over the course of the year we place over 1500 bets. Usually isn't a problem because most gamblers lose it all but there are a few minority that do go a mini hot streak or profit and cash out before they blow it all.

Tax on capital gains is a separate issue to reporting the income.

Where I live there is no requirement to report any gambling winnings or losses.

Your milage may vary, but most people who consider themselves ongoing winning bettors whom I have discussed this with from different US states mostly end up saying it's worth their effort to report properly and the actual tax cost ends up minimal when done right, and it means that income can be used to justify a higher mortgage or better interest rate for example.

**MalikHusam** · 02-13-25, 07:12 PM

Find a friend who's a real estate agent, makes a ton of money, and loses at sports betting (like myself).

Give him a cut for claiming the money you make, actually was won by him.

Thank me later.

**MalikHusam** · 02-13-25, 07:15 PM

Originally posted by Optional

Bookmakers are very easy to spot this way.

Yes, and so are exchanges.

So... you need to have a network of people to make yourself un-traceable. Think Billy Walters and his runners. They are useless without him, he couldn't win even 10% of what he did, without them.