I just had two wire transfers of $9,800 wired into my account from my sportsbook 15 days apart. What are the rules for reporting this as income with the IRS?
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$9,800 each? That's a big time red flag. You better report all of that incomeComment -
the IRS is usually only notified on transactions of 10k or more
I wouldnt report it, because your book does not send them anything!Comment -
I would be very careful moving that amount of money around. Moving that amount of money around, just below the reporting threshold, could be classified a structuring, which is illegal. http://en.wikipedia.org/wiki/StructuringComment -
You are required to report your winnings, less losses. http://www.irs.gov/newsroom/article/...108277,00.htmlOriginally posted by cmatth1326Comment -
All US gamblers are required to report all of their income from gambling as it falls under the definition of gross income. § 61 of the tax code broadly defines gross income as "all income from whatever source derived." There may be offsetting losses under § 165 of the code but you are still required to report the winnings.Comment -
So, is it cool to report winnings from offshore sportsbooks even though they are not operating legally according to US law?Comment -
CTRs - cash transfer reports - only apply to cash transactions. A bankwire is not a cash transaction.
A lot of sportsbooks seem worried about the 10k limit though. I'm not sure why.
Re: income. If you win money at sports, you owe income tax (at least in the US). The amount of the bankwire is irrelevant. A lot of wires do leave a paper trial though.Comment -
to make myself clear, you are suppose to claim all income, whether legal or not. if you claim illegal income, then you are a moron! the IRS does not know about your income from offshoreComment
