tax implications

[rara51]

can anyone shed some light on this. if a US citizen would be able to fund their pinnacle account via their Canadian bank account (wire tranfer or cashiers check) what would the tax implications be if any?

[rolemand]

none - you should report your winnings and pay taxes on them.

[rara51]

Royal bank of Canada, CIBC, HSBC, and Bank of Montreal will all open accounts utilizing your US address. By law they must use the address on your ID. You will need a passport and ID with address. HSBC is the only one that claims to report to the IRS, but obviously, who knows about that. Is there any validity to this? in other words would it be safer to open an RBC account vs a Canadian based HSBC account?

[increasedodds]

There is no change in tax implications.

If you want to follow the law, you report your income.

Sean

[BuddyBear]

hey increasedodds...i see you over at FP. Just noticed you here. Very solid posting you do there. Good to have you around. Hope you can post a lot here too...

[rara51]

There is no change in tax implications.

If you want to follow the law, you report your income.

Sean

odds, trust me i pay my fair share of taxes however why bring more attention to myself when i can avoid it?

[Justin7]

If you play at Pinnacle, you cannot live in the US.

If you live outsite the US for 12 months, you get an 80k (or 90k now?) deduction. Report your gambling income, but pay less for living abroad.

[MAXWELL]

If you play at Pinnacle, you cannot live in the US.

If you live outsite the US for 12 months, you get an 80k (or 90k now?) deduction. Report your gambling income, but pay less for living abroad.

How do i get an90k tax break for gambling. All i have to do is move to canada?????please explain.
max

[genyes]

You should continue paying taxes on your net gambling winnings just like all the players that use this site. After all, your tax dollars are going to a good cause--supporting the Bush regime.

[durito]

How do i get an90k tax break for gambling. All i have to do is move to canada?????please explain.
max

US citizens that live outside the US don't have to pay federal income taxes on the first $80,000 they make outside the US. You still owe SSI and medicare and may owe state taxes. You have to be physically outside the US for something like 300+ days of the year though.

[MAXWELL]

US citizens that live outside the US don't have to pay federal income taxes on the first $80,000 they make outside the US. You still owe SSI and medicare and may owe state taxes. You have to be physically outside the US for something like 300+ days of the year though.

thank you for the clarification.
max

[louis]

$80,000 deduction is for "services performed in a foreign country"

Can deduct $82,000 of income earned in the foreign country for services performed in that country. There may be other rules.

In general US citizens are taxes on worldwide income, regardless of where they live.