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BFIV
Member since Apr 2012
1009 posts
| re: tax question - gambling (Posted on 5/13/12 at 6:23 pm to TheOcean)
quote:
As long as you don't get caught, you're golden. If you do, and that is a possibility, although I can't assign a percentage to it, you face tax evasion and money laundering charges. You have to ask yourself if avoiding a few thousand dollars in taxes is worth it.
This...
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Walt OReilly
Cubs Fan
Member since Oct 2005
65036 posts
| re: tax question - gambling (Posted on 5/13/12 at 7:13 pm to TheOcean)
thanks
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Stanky Legg
Member since Sep 2010
4052 posts
| re: tax question - gambling (Posted on 5/13/12 at 7:37 pm to TheOcean)
quote:
Nah, it's all online
Where are you playing online that still allows US players?
How do you deposit your funds? Bank transfer?
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Stanky Legg
Member since Sep 2010
4052 posts
| re: tax question - gambling (Posted on 5/13/12 at 7:41 pm to TheOcean)
quote:
bodog, merge network
I checked bodog a couple of days ago and got a "This domain name has been seized by the US Dept of Justice" message.
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TheOcean 
Florida State Fan
Tampa Bay, FL
Member since Aug 2004
23298 posts
| re: tax question - gambling (Posted on 5/14/12 at 8:12 am to Stanky Legg)
It's no longer bodog - it's bovada 
My visa CC worked fine on both sites and both have a great reputation of fast payouts.
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Poodlebrain 
LSU Fan
Way Right of Rex
Member since Jan 2004
12689 posts
| re: tax question - gambling (Posted on 5/14/12 at 2:29 pm to TheOcean)
Are you a professional poker player? If so, then you would report your poker playing activies on Sch. C. If you are not a professioan lpoker player, then you wuld report your net winnings from gambling as Other Income on Line 21 of Form 1040.
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SippyCup 
New Orleans Saints Fan
Member since Sep 2008
646 posts
| re: tax question - gambling (Posted on 5/14/12 at 4:31 pm to TheOcean)
Line 21 on the 1040 Other Income.....Unless your a professional gambler.
This post was edited on 5/14 at 4:32 pm
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Forgiving Morgan 
Alabama Fan
GUMP MODE: [ON] OFF
Member since Nov 2010
404 posts
| re: tax question - gambling (Posted on 5/14/12 at 7:27 pm to TheOcean)
The penalties for claiming dissallowed deductions are far less than than the penalties for hiding revenue. The CPA's on here can correct me if I'm wrong, but I would declare any money recieved and deduct the losses.
Dissallowed deductions = paying back in with interest and penalties
Tax Evasion = time served
Not a chance I would be willing to take.
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homeskillet
Alabama Fan
Huntsville, AL
Member since Dec 2011
214 posts
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You have 2 options:
Option 1: Declare yourself as a pro. Advantage is you can claim your losses. Disadvantage, you are all but guaranteed an audit. You can never switch back, so you will always be an IRS target. I think you also pay a higher rate.
Option 2: Don't declare yourself as a pro and you must claim all earnings, regardless of your losses. So if you cashed out for 100 bucks this year, but lost a grand trying to get that one cash out, you claim extra income of 100 bucks. Advantage, no IRS.
Source: years of browsing poker forums and online play. twoplustwo.com is an excellent resource. I would recommend checking there over here for advice in that realm. There are legit posters there that know the ins and outs of the life.
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kfizzle85
LSU Fan
Houston
Member since Dec 2005
19866 posts
 Online
| re: tax question - gambling (Posted on 5/14/12 at 10:09 pm to homeskillet)
A shame its factually incorrect tho.
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TheOcean
Florida State Fan
Tampa Bay, FL
Member since Aug 2004
23298 posts
| re: tax question - gambling (Posted on 5/14/12 at 10:20 pm to homeskillet)
I'm on 2+2 daily, thanks for the info.
Also, there aren't any losses since you play well inside of your bankroll. It is all pure profit. What would be the threshold to declare yourself as a professional?
This post was edited on 5/14 at 10:29 pm
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foshizzle
LSU Fan
Member since Mar 2008
25123 posts
| re: tax question - gambling (Posted on 5/14/12 at 10:52 pm to TheOcean)
quote:
What would be the threshold to declare yourself as a professional?
If you are serious, you already know this is the wrong place to ask.
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Jim Rockford
LSU Fan
Member since May 2011
23253 posts
| re: tax question - gambling (Posted on 5/14/12 at 11:26 pm to TheOcean)
quote:
Also, there aren't any losses since you play well inside of your bankroll.
It's not quite that simple. I'll use horse racing, since that's what I'm familiar with. Say over the course of the year, you make $1000 worth of bets and come out $100 ahead. Instead of declaring $100 in income, you're supposed to declare $1100 in winnings and offset it with $1000 in losses, and you'd better have it documented in case of audit (not as hard as it sounds, the online site I uses keeps track of all that for me.)
Not sure how that translates to poker, I assume they don't expect you to record every winning and losing hand. Possibly by session, though.
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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12689 posts
| re: tax question - gambling (Posted on 5/15/12 at 7:58 am to TheOcean)
quote:
What would be the threshold to declare yourself as a professional?
There is no specific threshold. The issue is whether you are conducting a trade or business, or are you engaging in a hobby? You can deduct the ordinary and necessary expenses incurred in a business such that it results in deductible net loss. You cannot deduct a net loss from a hobby.
Note, if you are a professional, then your income from your profession is subject to self-employment taxes. Income from a hobby is not.
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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1234 posts
| re: tax question - gambling (Posted on 5/15/12 at 3:37 pm to TheOcean)
buy a safe put the cash in the safe problem solved.
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TheOcean
Florida State Fan
Tampa Bay, FL
Member since Aug 2004
23298 posts
| re: tax question - gambling (Posted on 5/16/12 at 10:44 am to Poodlebrain)
Thanks guys, I guess i need to give it some more time and see how everything turns out.
Anyways, for anyone who is looking to get back into poker, here's some promising news:
LINK
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