[ttwarrior1]

Ann-Margaret Johnston

Are you a successful poker player? If you’re a professional gambler, we have news that will get your blood pumping. According to a recent article in the Las Vegas Review-Journal and a leading poker tax authority, professional gamblers can now deduct business expenses, even in the event of an overall loss. Now, out of pocket expenses like driving to and from a casino and any fees that may be incurred along the way can be written off as expenses.
A side benefit to the ruling, according to the Review-Journal, is that it legitimizes gambling as a profession. The article quotes Steve Johnson, a professor at the University of Nevada’s Boyd School of Law, as saying, “What the decision says is that gambling is a business trade that is not any different than any other profession. A professional gambler can deduct business expenses.”
The change in policy is a result of a case involving Robert Mayo, who listed nearly $11,000 in expenses on his 2001 taxes. Mayo wagered $131,000 in horse racing bets and brought in $120,000. The Review-Journal explained, “As part of his tax return that year, Mayo listed expenses of $10,968, which included automobile expenses for travel to the racetracks, and fees for race handicapping information and other research purposes… The court ruled those expenses were not a wagering loss, but business expenses that contributed to a net operating loss for the year
Professional gamblers will be able to alter their last three years’ worth of returns accordingly. Previously, expenses were only deductible up to the amount that a player won. This left accountants like Johnston in a bind and awaiting a court ruling such as the one that occurred in January.
As an important caveat, players must be considered professional gamblers in order to qualify vis-à-vis the new ruling. This, according to the Review-Journal, means they derive most of their income from gambling. The Internal Review Service plans on examining each person’s case individually and did not comment to the Nevada news outlet other than saying it would act on a “case by case basis.”
Poker players are saddled with expenses like flying to tournaments, hotel fees, and meals. In the case of cross-country trips or sojourns out of the country, these expenses can add up fairly quickly. The World Poker Tour, for example, holds tournaments in states like California, Nevada, Indiana, New Jersey, and Florida. Expenses are entered on Schedule C of a person’s tax return and this year, every resident of the United States must file his or her taxes by April 18th.
Ann-Margaret Johnston is a native and life-long resident of Georgia. She received her Bachelor’s degree in Accounting from Clayton College and State University. She is a Certified Public Accountant and a member of the Georgia Society of CPA’s. She has worked in the field of accounting since 1986 and began her accounting practice in 1995. She has been a Rotarian for 10 years and is active in her local Rotary club.
In 1997, she took her first trip to Vegas. She became intrigued with Texas Hold’em poker and took a lesson in a popular Las Vegas casino. Ever since, she has been playing poker for the pure enjoyment and the challenge of the game in Las Vegas, Tunica, Atlantic City, Biloxi, Wisconsin, Canada, on-line and any other chance she gets. She has won several small tournaments and poker is her favorite subject to discuss.
Ann fees for players is $250/hour and for tax preparation, there is a minimum of $500 for the return. We can prepare tax returns for any state or a combination of states. We offer tax planning and can usually meet with players in Nassau, Las Vegas, Tunica, Biloxi or Atlantic City during the large tournaments. She has poker-playing clients in 30 states and her roster includes Memphis resident and 2003 World Series of Poker Main Event champ Chris Moneymaker. For full information on Ann-Margaret Johnston, go to her website PokerDeductions.com

[ttwarrior1]

John Campbell (R-CA) and Barney Frank (D-MA) introducing the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill’s number was not known at press time.
The news was released around 6:45pm ET on Thursday and the measure strongly resembles HR 2267, which was rubber stamped out of the House Financial Services Committee last July by a 2:1 margin. HR 2267, despite its approval, did not see time on the House floor and a last-ditch attempt to attach an online poker-only version of it from Senate Majority Leader Harry Reid (D-NV) was also unsuccessful.
In January, the House of Representatives turned over from Democratic to Republican control. In the process, Frank lost his position as Chairman of the House Financial Services Committee and now serves as its Ranking Member. Democrats retained control of the Senate.
According to the Poker Players Alliance (PPA), the bill would implement “new technologies to prevent underage play and problem gambler abuse. The bill expands consumer protections not included in the current Unlawful Internet Gambling Enforcement Act (UIGEA). In addition, the Federal Government and the states will have the authority to prevent consumer fraud and generate revenue through taxes that are currently being paid to competing countries.”
The bill also contains provisions to investigate potential licensees; set deposit and loss limits; and combat cheating, fraud, tax evasion, and money laundering.
In last year’s markup of HR 2267 in the House Financial Services Committee, Campbell emerged as one of the true champions of protecting internet gambling consumers, a trait that appears to carry over into the new bill.
Barney Frank

HR 2267 would have created a comprehensive licensing and regulatory framework for the internet gambling industry in the United States. Unlike intrastate bills that, for the most part, only allow players to battle against others in the same state, a nationwide bill would encompass all jurisdictions. The PPA and gaming giants like Caesars Entertainment have pushed feverishly for a Federal solution.
The measure seeing the light of day in the House Financial Services Committee appears to be a difficult task. A source close to Committee Chairman Spencer Bachus (R-AL) was quoted in a recent Washington Times article as saying, “If Mr. Bachus addresses internet gambling in the 112th Congress, such action would focus on examining the effectiveness of existing laws and making them tougher.”
John Campbell

Despite the long road ahead, the PPA was pleased that a bill similar to HR 2267 became a reality once more. PPA Chairman and former three-term Republican Senator Alfonse D’Amato commented in a press release, “I commend Representative Campbell and Ranking Member Frank for their leadership to protect players’ rights while implementing important consumer safeguards. We look forward to supporting this vital legislation as it moves through the legislative process.”

An intrastate internet gambling bill made it to the desk of Governor Chris Christie in New Jersey before it was ultimately vetoed. Across the country last week, Nevada Assembly Majority Whip William Horne introduced AB 258, which would legalize intrastate online poker. The bill, which is purportedly backed by PokerStars, also allows Nevada to enter into agreements with other jurisdictions where internet gambling is not explicitly illegal.

[VegasInsider]

[Killer_Demo]

interesting read, lets see if it ever gets passed

[Domer]

I don't understand the article at all. You already COULD totally write-off your business expenses. And secondly, you can have expenses > income just like any other profession. Somebody clue me in here what this article is trying to say is "new" or a "change" (or maybe I already am clued in and its the author of the article that is not).

[stikymess]

That bill basically regulates poker rooms, nothing for sports betting.

[sweethook]

i want my $ back

[vividjohn45]

i think its a good thing. will follow this more closely. thank you.

[Art Vandeleigh]

Is it safe to say that if most poker players were women Barney Frank would not be leading the way for repeal of UIGEA (I am not homophobic!)

[jjgold]

Anyone claiming gambling winnings has to be the biggest jerkoff that ever lived

[wtf]

Anyone claiming gambling winnings has to be the biggest jerkoff that ever lived

i agree

why would you expose yourself, outside of the track on over 600-1 payouts where you have no choice unless you pay a beard(which is what I do)

[durito]

i agree

why would you expose yourself, outside of the track on over 600-1 payouts where you have no choice unless you pay a beard(which is what I do)

To avoid jail and or fines?