Longtime lurker, my take on Matchbook, and my view on the industry

[durito]

tschmitt, durito......


Lets say someone is a "small timer" who is only making between 2-4K a year via online sportsbetting.....

Would you still advise them to report this income?

nice post btw tschmitt

Yes absolutely.

Are you going to get caught if not? Probably not. But what if you get audited for a completely different reason (that's not even your fault). They go back and find 10 years of you not reporting 3k of income. You don't want to do that.

Rather than cutting spending congress is pushing the IRS to close the tax gap (the difference in what they think they should collect and what they actually collect).

Rather than worry, just pay your owed tax and move on.

[durito]

i feel sorry for people who have to pay uncle sam. you're getting screwed by the books, now you have to pay the tax man. time to move to a free country.

have you ever gotten audited? you gamble but you want to play it safe...pretty self contradictory. paying tax is the same as betting +3000 prop bet of getting audited.

but hey, i don't pay US tax, so i really shouldn't be giving you US tax advises

I will also add that you can move to mars, you still have to pay US income tax on gambling winnings. Congress is even trying to say that people that renounce their US citizenship have to pay for another 10 years.

[pico]

I will also add that you can move to mars, you still have to pay US income tax on gambling winnings. Congress is even trying to say that people that renounce their US citizenship have to pay for another 10 years.

that is harsh.

do you know if western union or money gram report your transactions to your country's tax authority?

[bigugly]

If you made 5k cleaning houses, then lost 5k betting...can you say your net income was 0?

[flyingillini]

Yes absolutely.

Are you going to get caught if not? Probably not. But what if you get audited for a completely different reason (that's not even your fault). They go back and find 10 years of you not reporting 3k of income. You don't want to do that.

Rather than cutting spending congress is pushing the IRS to close the tax gap (the difference in what they think they should collect and what they actually collect).

Rather than worry, just pay your owed tax and move on.

Probably the smartest post on this subject ever on SBR.

[tschmitt87]

If you made 5k cleaning houses, then lost 5k betting...can you say your net income was 0?

Here is a site that can help get you started on understanding tax law. Also look up articles by Nelson Rose. He is an expert on gaming laws and a lot of his info can help you have a clearer understanding. The absolute best way to help you is by going to your tax advisor. Nothing can help you more and is the smartest move. Best of Luck to you.

http://www.gamblingandtaxesonlinegamblingpokerincometaxesgamblinglossesirs.com/#articles%20and%20books

[bigugly]

Thanks, I am going to look at the site now. Isn't it expensive if you have to pay to talk to someone to advise you on tax laws?

[durito]

If you made 5k cleaning houses, then lost 5k betting...can you say your net income was 0?

No.

[durito]

Thanks, I am going to look at the site now. Isn't it expensive if you have to pay to talk to someone to advise you on tax laws?

The services of competent professionals are usually worth their high cost.

That said, 99.9% of accountants don't have the faintest idea what to do with gambling winnings. The IRS barely does itself.

[tschmitt87]

The services of competent professionals are usually worth their high cost.

That said, 99.9% of accountants don't have the faintest idea what to do with gambling winnings. The IRS barely does itself.

Very true. That said finding a tax advisor that actual knows what to do in these situations can take some time to find. They are out there and if your current one doesnt know tell him/her to read up on the tax laws in your state in the relevance to gambling tax. They will find out because it is their job. Dont be afraid to ask them.