1. #176
    Mac4Lyfe
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    Also remember that if he had won at a US book, they would have withheld 24% on winnings in most cases. That's not enough to pay the total tax due which also gets people in trouble because he'd actually owe 37%. Plus we're not even talking about state taxes as well. But since he won it offshore, there's no record yet. Not until he creates a record by cashing out.
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  2. #177
    Nate rasta
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    Sorry if this is a dumb question but he can't put that much money in his bank account because it's from a offshore casino right?

  3. #178
    Mac4Lyfe
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    Quote Originally Posted by Nate rasta View Post
    Sorry if this is a dumb question but he can't put that much money in his bank account because it's from a offshore casino right?
    Sure he can but it will get reported to the IRS.
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  4. #179
    Nate rasta
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    ^^^^ even if your in a state that considers it "unlawful gambling "?

  5. #180
    lonegambler23
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    Quote Originally Posted by bj32 View Post
    Thanks for the suggestion and maybe I'll do that with my next withdrawal, but I really could use cash for bills right now so I transferred the bitcoin to my Paypal account last night. This morning when I woke up the bitcoin was worth $102k. I sold that and ended up with just over $100k USD after fees. I do have screenshots that I can share but still not sure how to do it better than I did last time.
    imgur . com

  6. #181
    Wilfred
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    Quote Originally Posted by Mac4Lyfe View Post
    Sure he can but it will get reported to the IRS.
    It wonít be reported unless he uses a 3rd party suck as Venmo or PayPal that generated a 1099 but yeah if they audited him and saw that unreported itís for sure be considered tax evasion

  7. #182
    Mac4Lyfe
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    Quote Originally Posted by Wilfred View Post
    It won’t be reported unless he uses a 3rd party suck as Venmo or PayPal that generated a 1099 but yeah if they audited him and saw that unreported it’s for sure be considered tax evasion
    Or if you move it to a bank account. I think he did both a bank and paypal. it will surely get reported. He won't ever get a 1099. They won't hit you for tax evasion. Just hit you with a bill. I'm thinking he could get penalized for not withholding estimated taxes plus interest. Which is why I would delay reporting as long as possible.
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  8. #183
    Mac4Lyfe
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    Quote Originally Posted by Nate rasta View Post
    ^^^^ even if your in a state that considers it "unlawful gambling "?
    The IRS does not care how you got your money as long as you report it and pay them their share.

    Some states require you to pay state taxes in the state where you won. Some require you pay regardless where you won it.
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  9. #184
    Nate rasta
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    That's not true

  10. #185
    dculh
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    What happened to the thread about the duke who won 400K in the betonline casino?

    The thread was on page 4 this morning and I can't find it tonight.

  11. #186
    Optional
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    Quote Originally Posted by Mac4Lyfe View Post
    I'm definitely no tax expert
    Yet you are creating confusion for anyone interested in the subject, and trying to tell a professional tax guy in Milwaukee Mike how it works?

  12. #187
    Fishhead
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    Correct, MilMike is THE MAN when it comes to taxes.

  13. #188
    Nate rasta
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    For large amounts like this you have show the bank where you got it from. Not sure what the their stance is for offshore gambling money that's why I'm asking.

  14. #189
    Nate rasta
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    Do the banks and feds consider it legal money or is it illegal money in their eyes

  15. #190
    Easy-Rider 66
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    Quote Originally Posted by Nate rasta View Post
    Do the banks and feds consider it legal money or is it illegal money in their eyes

    If in USA No dice

  16. #191
    Optional
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    Quote Originally Posted by Nate rasta View Post
    Do the banks and feds consider it legal money or is it illegal money in their eyes
    There would be a lot of posters here charged over the years if authorities considered bitcoin illegal.

  17. #192
    Easy-Rider 66
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    Quote Originally Posted by Optional View Post
    There would be a lot of posters here charged over the years if authorities considered bitcoin illegal.
    yeah Maybe BTC.

  18. #193
    pologq
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    Quote Originally Posted by Optional View Post
    There would be a lot of posters here charged over the years if authorities considered bitcoin illegal.
    agreed

    keeping money to cover the tax is key with any big winnings

  19. #194
    milwaukee mike
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    Quote Originally Posted by Optional View Post
    Yet you are creating confusion for anyone interested in the subject, and trying to tell a professional tax guy in Milwaukee Mike how it works?
    yeah the rule on estimated taxes... is that you have to pay the LOWER of 100% of 2021 taxes or 90% of 2022 taxes to avoid interest charges on the 2022 return ... and if your 2021 income was over 150k then it's the LOWER of 110% of 2021 taxes or 90% of 2022 taxes

    so in this case i don't feel like he would owe any interest

    but definitely keep a big chunk to the side for taxes and get them paid before april 15th!

  20. #195
    Nate rasta
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    This is another reason why we need legal books. I know they don't care about the small fish but this guy just hit a lotto ticket. What's he going to tell them, I turned 1,000 into 400,000 investing in Bitcoin in a week

  21. #196
    Nate rasta
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    Congrats on the big win. That's every gambler's dream to win something like that. You should definitely talk to lawyers for advice so you cover all your bases

  22. #197
    Wilfred
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    Quote Originally Posted by Mac4Lyfe View Post
    Or if you move it to a bank account. I think he did both a bank and paypal. it will surely get reported. He won't ever get a 1099. They won't hit you for tax evasion. Just hit you with a bill. I'm thinking he could get penalized for not withholding estimated taxes plus interest. Which is why I would delay reporting as long as possible.
    I mean there has to be a generated form for it to be reported, it just doesnít get reported by the bank when itís electronic. People using PayPal/Venmo are in for a shock this year and they will get a 1099 for moving money even from legal books over $600 in total. Those who did it last year over $20,000 already know that pain. Moving it directly from the book (legal) to your bank wonít cause anything to be reported though as far as tax forms unless your play had generated a W2G. As far as estimated taxes usually they hit you with the interest penalty if you owed money in the previous tax year so it would depend on if he did there. In I live, Michigan, the state taxes are a higher penalty than federal by a good amount for not paying estimated throughout the year.

  23. #198
    raiders72001
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    Quote Originally Posted by milwaukee mike View Post
    yeah the rule on estimated taxes... is that you have to pay the LOWER of 100% of 2021 taxes or 90% of 2022 taxes to avoid interest charges on the 2022 return ... and if your 2021 income was over 150k then it's the LOWER of 110% of 2021 taxes or 90% of 2022 taxes

    so in this case i don't feel like he would owe any interest

    but definitely keep a big chunk to the side for taxes and get them paid before april 15th!
    good info. Definitely need a guy like you around here.

  24. #199
    raiders72001
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    Quote Originally Posted by Mac4Lyfe View Post
    I have a bunch of bitcoins on a Nano S ledger that I bought when they were like $10. I tried to look at it last year just out of curiosity and it needed an update and I couldn't even see my coins. They said to call customer support. I just put the thing back in my safe. I'll figure it out later, I'm in no hurry to sell. I also have a bunch on paper wallets. I found the Blockchain wallet to be very easy and It's never been hacked.
    That's funny. I have 2 Ledgers and 1 Trezor. One Ledger I haven't looked at the balance in a long time and I'm going to keep it that way.

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