Taxess..

urge2kill · 02-20-10, 01:56 PM

If you lost money for the year you don't have to pay taxes.

arminz · 02-20-10, 01:57 PM

do i have to still report it though? bc how do they know i lost? also i wanted to reinforce that my deposits were never higher than 1000 and i withdrew 5000 probably total, highest 2 k check and others were like 500 each time ** withdrawals.

whatsgood5 · 02-20-10, 02:00 PM

Originally posted by arminz

do i have to still report it though? bc how do they know i lost? also i wanted to reinforce that my deposits were never higher than 1000 and i withdrew 5000 probably total, highest 2 k check and others were like 500 each time ** withdrawals.

You don;t pay taxes for money you've lost...

bigboyfosho · 02-20-10, 02:02 PM

Why would have to get taxed on loses? 5k-10K= -5k

arminz · 02-20-10, 02:06 PM

yea well im not asking if i have to pay taxes..but if i have to report overal that i wagered..bc in the end i still got withdrawals equaling 5k that i deposited into my bank...dont they flag this? or are number this small going into my bank not important to irs? i heard somewhere deposits under 10k wont be flagged/audited...just wondering what you guys have heard and maybe some experiences...just scared that theyll raise some questsions..

Boner_18 · 02-20-10, 02:08 PM

If you are declaring the winnings you can also deduct losses to the extent of those winnings. You need not declare losses if you have no winnings.

Technically, you should declare the winnings and deduct losses to the extent of the losses and not do the P/L yourself and bypass this declaration. However, all these transactions are truly undocumented (you didn't get a 1099-Misc from the casino) and what you do with them is up to you.

arminz · 02-20-10, 02:12 PM

wont they see that i am a student and these transactions are high numbers bc i only have a part time salary and flag it and look into these things? not sure...sorry to ask just not really clear on these things...and also its true that i lost, but how do govt authorities know that? dont they just see possibly that i got 5k income (that caem from my withdrawals)...again i was told many times that "there are bigger fish to fry" so i think my measly 2k and 500 dollars withdrawals will probably not be looked into...but dont wanna be screwed over in the end...

Boner_18 · 02-20-10, 02:12 PM

Deposits of those sizes very well could be reported. Even small but systematic deposits or money transactions should be reported to the IRS by any money transfer agent. If you want to be ultra safe and compliant you should declare the winnings and losses. Of course if you don't and are audited you wont owe anything at the end of the audit if you really did lose right? There is no danger of an evasion charge as you have to owe something in order to evade.

Boner_18 · 02-20-10, 02:14 PM

The answer is you don't know if they will be flagged, and if they are are you big enough for them to care. Rarely will the Service spend $5000 to audit someone over 1750 in taxes (35% of 5k). If you are audited/investigated the profit and loss statements from your online bookies will suffice to show the losses.

arminz · 02-20-10, 02:15 PM

yea, i definitely lost a lot, and honestly have stopped playing bc im a student and i was stupid and got caught up in it...but yea i lost a lot but now im not trying to deposit more in hopes of digging myself out of my big losses...but yea i lost a lot, just hoping i dont get audited or confronted...but yea i never deposited more thatn 1k, and biggest withdrawal was 2k check others all under 1k...only withdrew like maybe 7 or 8 times...did a lot of 500 dollar deposits though...

arminz · 02-20-10, 02:28 PM

anyone have any experience or heard anything else about this? thanks again.

Powderguy · 02-20-10, 02:30 PM

I wouldn't worry about it.

arminz · 02-20-10, 02:49 PM

what are usually the amounts that if u go over for depositing into sportsbook that cause ur activity to be flagged...or is that just not true? kinda worried about problems that might occurbc of my many deposits using credit card to bookmaker...(a lot of 500 dollar deposits)...or am i just being stupid and thats maybe chump change for the people looking at online gambling..?

sharpcat · 02-20-10, 03:00 PM

$2,500 and up with western union is usually flagged along with multiple transactions in one day, banks are the same but it is optional if it is suspicious or not.

Even if flagged it does not matter unless you are getting flagged constantly, people do make legal transactions of over $2,500 constantly so it is not a big deal. Purchases of $10,000 and over go straight to the IRS. If you made credit card deposits for more than you withdrew than you have evidence of your losses being more than your winnings and have nothing to worry about. There are only so many IRS agents and they do not have the time or money to invest to chase after $500 in taxes.

arminz · 02-20-10, 03:32 PM

yea thats wut i was thinking...i really didnt think the irs would hunt me down considering so many guys are out there making 5 digit transactions daily..i did that barely in an entire year with very small transactions basically all under 1k.

Powderguy · 02-20-10, 03:34 PM

Just don't crash a plane into their building if you become unhappy, that's all I ask.

arminz · 02-20-10, 03:38 PM

haha yea rediculous...well if they come after me..who knows..

i mean theres guys that make big transactions everyday..im just worried bc i made a lot of 500 dollar depposits with credit card in teh year on bookmaker...is that really bad or not that importatnt to them??

arminz · 02-20-10, 04:02 PM

anyone else..?

urge2kill · 02-20-10, 04:17 PM

Do you think anybody in the US government gives a crap if you don't report on your tax return that you didn't really win and don't owe taxes?

JohnAnthony · 02-20-10, 04:51 PM

Speak to a ****ing accountant.

fsugolf · 02-20-10, 05:08 PM

Yes they will come after you for losing money lol. Take some accounting classes while "being a student"

arminz · 02-20-10, 05:15 PM

hey sorry for asking a question..just didnt know how they can be sure that i lost money...ive heard of people being audited even though they have lost money in the year bc they were seen depositing withdrawals of certain large amounts...ur right tho..i'll take accounting classes in my spare time as a med student at upenn...thanks for the advice haha

fsugolf · 02-20-10, 05:18 PM

Do you really think withdrawing <5k in a year is enough for the IRS to care. For someone who is a med student you should try using some common sense

arminz · 02-20-10, 05:20 PM

haha..that is why i asked the question on the forum...bc i wasnt sure. thats what i thought one of the objectives of a forum was. i get what ur saying tho ahha...i guess i wont have to worry..thanks

fsugolf · 02-20-10, 05:25 PM

You really expected to find out about paying taxes from a forum full of degens who have not paid taxes in decades :lmao

arminz · 02-20-10, 05:26 PM

haha touche..maybe i just wantd to find out from people that dont do it...so that i wont feel as bad for not doing mine either lol...even tho i lost this past year hah