Taxex taxes taxes!

[roanildinho]

HELLLO!

Can anyone PUH-LEASE explain how Taxes WORK?

Fill me in on this.

1. Taxes in Online Betting

2. Taxes in real life betting with a liscensced Shop.

And yes i know the 10,000 irs rule. but that isnt taxes.

So care to explain?

Pleas post even if your not sure of the answer , just give me any feedback?

Appreciated.

[roanildinho]

SBR cant you explain this, i can see you fixed my title so you must have saw it.

Justin 7, any info?

i know you can help me.?

thanks.

[relaaxx]

HELLLO!

Can anyone PUH-LEASE explain how Taxes WORK?

Fill me in on this.

1. Taxes in Online Betting

2. Taxes in real life betting with a liscensced Shop.

And yes i know the 10,000 irs rule. but that isnt taxes.

So care to explain?

Pleas post even if your not sure of the answer , just give me any feedback?

Appreciated.

you are taxed on winnings. enter winnings as income. no matter where you win.

[PanamaBrad]

Panama taxes nothing you earn from the internet.

[JoeVig]

$10,000 is a treasury department rule requiring a CTR to be filed, nothing to do with taxes. The other $10,000 rule is for reporting overseas accounts totalling more than $10,000.

[John Dough]

Consult a CPA, not an internet forum.

Short version: You declare gross winnings, deduct gross losses (up to the amount won), pay taxes on the net income if there is any.

[roanildinho]

I dont understand,

So what if i want to cash out 1000, do i have to pay a small fee for it?

[roanildinho]

and if i do what is the fee, thats what im wondering, is it something small like 7 percent?

[Justin7]

If you make money from sports betting, that is income. You declare it.

If you are a pro gambler, you can itemize your deductions. You can deduct your losses from your winnings.

If you are making 100k+ a year, there are tax strategies that are legal, and don't raise your AGI like declaring winnings and deducting losses.

[roanildinho]

;To who do i declare it, i only cashout 200 - 300 so im not a pro gambler.

So does this mean i have to tell the bank? or is this only

if my payout goes over 10k?

[laxbrah420]

why are you shouting? you don't need to declare it.

[cc440unn]

yoooooooo flood time

[ThisGuy]

If you are making 100k+ a year, there are tax strategies that are legal, and don't raise your AGI like declaring winnings and deducting losses.

Will you please expound or send me a pm if you don't want it blasted, I'd appreciate it

[Santo]

;To who do i declare it, i only cashout 200 - 300 so im not a pro gambler.

So does this mean i have to tell the bank? or is this only

if my payout goes over 10k?

End of year tax return

[cyberinvestor]

Justin7 pretty much covered it. However just to expand.

At the end of the tax year you are legally required to add up all your gambling winnings and all your gambling losses. Obviously proof of the losses is quite helpful (losing tickets, win/loss statements, etc.). After you do that you will get a net win or net loss. If you lost more than you won, you don't owe any taxes on your wagering. If you won more than you lost then you have a net income on gambling and that net income figure is what you pay taxes on. The tricky part comes in with state taxes and this is where you will need a CPA. Many states consider your gambling winnings as part of your income (before deducting any losses) and while you can deduct your losses and offset the winnings the extra income will put you into a higher tax bracket causing you to pay more on your taxes.

If you are a big gambler it is worth investigating becoming a professional gambler on your tax return. It helps in more ways than I can type here. The catch though is if you list yourself as a professional gambler you cannot earn substantial income anywhere else. So, you can't be a lawyer and list yourself as a professional gambler. The way many players get around this rule (it is what the big poker players do) is by creating a professional gambling entity. A PGE is simply a corporation or LLC whose primary business is gambling and you are the CEO. By doing this you could be a lawyer and earn your income from that and have this side business that all it does is gamble. The benefit of having a PGE is as Justin7 said you can deduct all your expenses. So, if you go to Vegas you deduct meals, entertainment (certain restrictions), cab fares, hotel room, etc. In a Vegas trip you might have a net profit of $10,000 however unlike a typical individual (who cannot write-off these expenses) because of your PGE you can take that $10,000 and deduct all your travel and gambling related expenses (buying Lang's $100 play to fade would be a deduction, no joke) perhaps taking your net win down to $6,000 whereas the typical individual would have to declare the $10K as gambling net profit without any write-offs.

Now before everyone goes out and opens a PGE you need to understand that the government will not allow you to really have more than one losing year here and there before they will classify you as a hobby business and remove the benefits of your PGE. Also, it's really intended for bigger players. If you are making less than $50,000 a year at gambling, without any deductions, then registering as a PGE with the IRS isn't really worth it and they may not accept the classification.

[roanildinho]

Thank you so much for this !!!!!!

From your own personal expirience, What is the tax they charge you on your winnings?

is it small or something big?

[JoeVig]

For most of us, it's just ordinary income. Whatever your tax bracket is, that's it. You make $50k in your day job and win $1k gambling, then your made $51k for the year. It's that easy.

[roanildinho]

Okay i got it,

But lets asy you earn a lot, = you pay more taxes,

at the end of the tax year, doesnt the government give that money back?

[agharah1]

All income from gambling is taxed as ordinary income. Whether you declare it is up to you if its only a small amount but failure to do so is a crime, regardless of whether it was from a legal source or not.

[roanildinho]

oKAY i got it,. thanks guys

[durito]

Are you employed sir?

[djtrub]

Justin7 pretty much covered it. However just to expand.

At the end of the tax year you are legally required to add up all your gambling winnings and all your gambling losses. Obviously proof of the losses is quite helpful (losing tickets, win/loss statements, etc.). After you do that you will get a net win or net loss. If you lost more than you won, you don't owe any taxes on your wagering. If you won more than you lost then you have a net income on gambling and that net income figure is what you pay taxes on. The tricky part comes in with state taxes and this is where you will need a CPA. Many states consider your gambling winnings as part of your income (before deducting any losses) and while you can deduct your losses and offset the winnings the extra income will put you into a higher tax bracket causing you to pay more on your taxes.

If you are a big gambler it is worth investigating becoming a professional gambler on your tax return. It helps in more ways than I can type here. The catch though is if you list yourself as a professional gambler you cannot earn substantial income anywhere else. So, you can't be a lawyer and list yourself as a professional gambler. The way many players get around this rule (it is what the big poker players do) is by creating a professional gambling entity. A PGE is simply a corporation or LLC whose primary business is gambling and you are the CEO. By doing this you could be a lawyer and earn your income from that and have this side business that all it does is gamble. The benefit of having a PGE is as Justin7 said you can deduct all your expenses. So, if you go to Vegas you deduct meals, entertainment (certain restrictions), cab fares, hotel room, etc. In a Vegas trip you might have a net profit of $10,000 however unlike a typical individual (who cannot write-off these expenses) because of your PGE you can take that $10,000 and deduct all your travel and gambling related expenses (buying Lang's $100 play to fade would be a deduction, no joke) perhaps taking your net win down to $6,000 whereas the typical individual would have to declare the $10K as gambling net profit without any write-offs.

Now before everyone goes out and opens a PGE you need to understand that the government will not allow you to really have more than one losing year here and there before they will classify you as a hobby business and remove the benefits of your PGE. Also, it's really intended for bigger players. If you are making less than $50,000 a year at gambling, without any deductions, then registering as a PGE with the IRS isn't really worth it and they may not accept the classification.

Nice post. Thanks!

[PanamaBrad]

Don't forget to pick up those losing tickets off the floor from the track. Or losing ticket stubs laying around in Vegas. They are extremely important for record keeping. In fact, they are probably worth the trip to bricks and mortar joints several times per year. Record keeping can be fun.

[roanildinho]

lool. so they dont suspect you earned the winnings right? smart smart

[roanildinho]

too bad it wont work with online

[Hareeba!]

If you make money from sports betting, that is income. You declare it.
.

that depends on where you reside

UK and Aus for example don't tax gambling betting unless you are engaged in a business or profession of gambling

[DitKent]

really? is gambling taxed in america?
wow
so americans are banned from playing poker online, betting online and whatever they win at casinos needs to be declared as income?

[ThisGuy]

Even though you're 'banned' from the former, you still need to declare the income. I'm still not aware of anyone that's been prosecuted from placing a sports wager online - only bookmaking

[cyberinvestor]

Thank you so much for this !!!!!! From your own personal expirience, What is the tax they charge you on your winnings? is it small or something big?

Looks like this question was answered, it is taxed as ordinary income at whatever your bracket rate is based on your overall income total.

too bad it wont work with online

Why not? Print every ticket you put in and save them.