Can someone update me on "Taxes"?

[Timmay]

generally speaking, if that's all you got, pay the taxes. to be a professional entitled to write it off, it has to be a primary source of your income. some gambler rollin into a casino a few times a year will not qualify. it has to be a part of your livelihood, and if it is, you can deduct the expenses related to that profession (all buy ins, travel, hotels, etc.) against your winnings. but if you're only an occasional gambler, you can't deduct your losses from one trip versus your winnings on another -- at best you can offset your winnings from a particular trny with the expenses directly related to that trny (your buy in, gas to go play it, accomodations on that trip, meals, etc.) if it's your livelihood, you can deduct all those expenses for the year vs. your winnings for the year..... just like any other business/profession.

I hear you, for sure. It seems like doing it as a business is a lot better, but way more complicated.

Let me get this straight. If one is not a professional and they deposit 30k and cashout 30k.... They have to pay 30k in taxes?? What if you have the deposit/withdrawal form from a book stating you didn't make any money???

Can't one show write off their withdrawals from their deposit without having to file as a professional because it might not be their primary income if they don't make anything.

[Triple_D_Bet]

I hear you, for sure. It seems like doing it as a business is a lot better, but way more complicated.

Let me get this straight. If one is not a professional and they deposit 30k and cashout 30k.... They have to pay 30k in taxes?? What if you have the deposit/withdrawal form from a book stating you didn't make any money???

Can't one show write off their withdrawals from their deposit without having to file as a professional because it might not be their primary income if they don't make anything.

For determining your actual income, the IRS requires you to report winnings and allows you deduct losses (if you itemize deductions). I haven't had to look at filing as a professional in recent years and things may have changed, but I didn't see any changes in a quick glance...your mileage may vary. I will add that as a non-professional, you are not allowed to deduct expenses related to a tournament, whether it's for that tournament or anything else....travel expenses are not deductible unless it's your profession.

A very important distinction with what you said here: depositing $30k isn't a loss, nor is cashing it out...this is the same as moving money from one bank account to another. The profits and losses are what actually happen on the tables, the same as live games. In theory, you need to report everything as it actually happens in a calendar year...but in reality the only records they care about (or which are easy to audit anyways) are the amounts coming in and out of your bank account. So if you deposit $30k this year, win $15k and withdraw $15k, you have considerable leeway to claim what you like in regards to profits/losses (could claim $15k loss, no loss or actual $15k profit, or anything in between). Theoretically they could catch you in subsequent years where money wasn't going into the account if you withdrew winnings...but that's probably only with an audit, and if nothing else looks suspicious you might never get one.

As with everything, I'm no expert, just someone who has had to look into this in the past and has some info to share. As someone pointed out, 2p2 has this info and much more to keep you square with the IRS (if that's something you care about, a subject on which intelligent people may disagree!)

[Weems2k]

What O-Bummer, and his Cronies don't know, won't hurt him. He isn't using our tax $$$ for anything useful anyways. Might as well save as much as you can.

[Auto Donk]

I hear you, for sure. It seems like doing it as a business is a lot better, but way more complicated.

Let me get this straight. If one is not a professional and they deposit 30k and cashout 30k.... They have to pay 30k in taxes?? What if you have the deposit/withdrawal form from a book stating you didn't make any money???

Can't one show write off their withdrawals from their deposit without having to file as a professional because it might not be their primary income if they don't make anything.

if you broke even and have the records to back it up, you don't owe a dime. save all your deposit records, it's not income if u put in 30 and cashed out 30. if you deposited 30k and cashed out 40k, ten k of it should be taxed. professional or novice..... also, no withdrawal, no income.... you have to realize a gain, once u do, it's taxable income.

[Triple_D_Bet]

if you broke even and have the records to back it up, you don't owe a dime. save all your deposit records, it's not income if u put in 30 and cashed out 30. if you deposited 30k and cashed out 40k, ten k of it should be taxed. professional or novice..... also, no withdrawal, no income.... you have to realize a gain, once u do, it's taxable income.

The IRS disagrees with the bolded part...the gain is made when you win and receive the money in the account you control (the online poker account), not when you withdraw it to your bank account. As I mentioned above, you're supposed to pay taxes on all income, regardless of which of your accounts it's in (or even if it's paid out to you yet in most cases). All stuff that a tax professional will tell you...although it's good to have a grasp of the concept so you can decide how much you want to claim legally. I agree with weems on this one for the most part; doesn't matter who's in charge, the federal government does a terrible job spending what they're given, there's no need to give them more to waste.

[Auto Donk]

I agree with weems on this one for the most part; doesn't matter who's in charge, the federal government does a terrible job spending what they're given, there's no need to give them more to waste.

I just hope my tax contribution, as minute as it might be, is used to kill some innocent, like george carlin used to say, "brown people" in a far-away land!