colonel Feathers 5 Posted November 17, 2009 Share Posted November 17, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities? Link to post Share on other sites
MaxStPolish 4 Posted November 17, 2009 Share Posted November 17, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?Your gains and losses are taxable from calendar year to year. IN THEORY, if you were up 58,000 for a year, and had all 58,000 still in your gaming account...the tax man wouldn't be aware of it. That's all I will say on that. You are obligated technically to report it....but that said......Of course you can deduct your losses up to the amount you have in gains. So in your example, if you won and lost that 5 million in the same year, you would deduct those losses from the gains ending with a zero sum. If you made 5 million in 2009, you would be obligated to report that. If you lose 5 million in 2010, you are SOL as to your 2009 $$, and could only deduct those losses from any 2010 gains.Yes, there is no difference between live and online. I would keep a journal and print out your transaction history for the year at year end online and keep your tourney stubs and a detailed journal about cash sessions so you have proof for the tax man at year end if you are dealing in large enough money.See the paragraph 2 regarding your last question. Obv some people don't do this, but it would behoove them to Link to post Share on other sites
JoeyJoJo 20 Posted November 17, 2009 Share Posted November 17, 2009 If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?Giving someone money with the agreement that they give it back to you is called a loan. Link to post Share on other sites
mrpaddyx 13 Posted November 17, 2009 Share Posted November 17, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?The not serious answer is move to the UK where we don't pay tax on gambling!The serious answer would be I think winnings would be taxable and loses would be classed as a tax deductable loss. I am not overly familiar with US Tax laws (and i would imagine each state has its own by laws) your probably best going to see a professional accountant. Link to post Share on other sites
Naked_Cowboy 0 Posted November 17, 2009 Share Posted November 17, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?i am a CPA, i don't deal with taxes on any regular basis, but there is no statute of limitations on tax fraud. just something to think about when your brain starts to wander to whatever schemes you are trying to come up with. Link to post Share on other sites
Balloon guy 158 Posted November 17, 2009 Share Posted November 17, 2009 i am a CPA, i don't deal with taxes on any regular basis, but there is no statute of limitations on tax fraud. just something to think about when your brain starts to wander to whatever schemes you are trying to come up with.LOL in your FACE -Marc Rich Link to post Share on other sites
dapokerbum 0 Posted November 17, 2009 Share Posted November 17, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?No, Durr is not dumping money to Isildur in hopes of "tricking" the tax man. Link to post Share on other sites
colonel Feathers 5 Posted November 18, 2009 Author Share Posted November 18, 2009 No, Durr is not dumping money to Isildur in hopes of "tricking" the tax man. you know this? Altho durrr would be an extreme case, if I was to win 100k and wanted to shelter it, why not? Link to post Share on other sites
JoeyJoJo 20 Posted November 18, 2009 Share Posted November 18, 2009 if I was to win 100k and wanted to shelter it, why not? tax fraud Link to post Share on other sites
Jariso13 1 Posted November 18, 2009 Share Posted November 18, 2009 Does anyone know the tax ramifications of online poker? If you dont cash out, is your online roll taxable?If you lose a million online, can this be deducted from a live win? And vice versa.Finally if you win 5 mill online, than lose it all are you even taxwise?If there are liabilities what would prevent someone from dumping off ayears win to someone in say Monaco, where there is no tax, than "winning" it back after Jan 1 to prevent any liabilities?If you have any material amount of winnings that hit your US bank accounts you should be claiming the winnings. If you have losses that you are claiming against these winnings you should be keeping very detailed records of you sessions.If the wins and losses arent very material no ones gonna kill you.If you file a tax return thats more likely to get audited (i.e. things on the return that are less common, aggressive tax positions on other items ect.) be more careful with how you report your gambling winnings. Also, if you have large amounts of winnings that you are going to claim remember 2 things...1) No money was withheld from your winnings. This will reduce your refund/increase the amount you owe at the end of the year at a much quicker rate than it would if you made more money at your regular job (obviously) 2) Because of this you may need to pay estimates (depending on how much you claim to make from playing online) and there is a penalty for not paying your estimates on time. Link to post Share on other sites
NoSup4U 0 Posted November 18, 2009 Share Posted November 18, 2009 you know this? Altho durrr would be an extreme case, if I was to win 100k and wanted to shelter it, why not?I don't really get your plan. You're going to lose on purpose to someone, then win it back next year? So you're going to pay taxes on it next year instead of this year. And your friend is going to pay taxes on it this year, and not next year. Seems like a complicated scenario to me. But w/e. Even if you get audited, seems like it would be a hard thing for them to prove, unless the 100K you lose/win is a huge chunk of your wins/losses.If you don't want to pay your taxes, just don't pay them. Most likely the govt will never know. Problem is, if they notice you spending more money than you should be and they come looking, the consequences are big. I don't understand theses threads very much. There isn't some magically way we all hide our winnings. We all pay taxes on them. And those that don't are just counting on the govt not noticing.Mark Link to post Share on other sites
Balloon guy 158 Posted November 18, 2009 Share Posted November 18, 2009 Exactly what Mark said.There is no way to get out of paying your taxes, none.Well maybe one, if your big breasted wife is willing to spend a couple nights with Bill Clinton then he will give you a full pardon and you can skip out on paying over a $100 million in back taxes.But that's the only way. Link to post Share on other sites
JoeyJoJo 20 Posted November 18, 2009 Share Posted November 18, 2009 There is no way to get out of paying your taxes, none.Well maybe one, if your big breasted wife is willing to spend a couple nights with Bill Clinton then he will give you a full pardon and you can skip out on paying over a $100 million in back taxes.But that's the only way.NOW you tell me. Link to post Share on other sites
Elrond 0 Posted November 20, 2009 Share Posted November 20, 2009 if u really want to get away from taxes.You can do following. learn to know someone from england (no taxes on gambling) dump money to him in dec. and win it back in jan.No taxes for you and the guy from england dont need to worry since he dont pay taxes Link to post Share on other sites
Jariso13 1 Posted November 20, 2009 Share Posted November 20, 2009 if u really want to get away from taxes.You can do following. learn to know someone from england (no taxes on gambling) dump money to him in dec. and win it back in jan.No taxes for you and the guy from england dont need to worry since he dont pay taxes#1 we covered this already above...you really use your second post on this? the first 10 should be special...#2 even if it all works out perfect and no1 realizes you owe taxes next year when you win it back...#3 it will never stand up in court...especially if you do it multiple years in a row...theres really not that much of a reason to pay taxes on money that you dont cash out from online sites...and...if your making enough money it would be worth it to try something like this your probably moving around large amounts of money often, which means you have large amounts coming in and out of your bank account regularly (>10,000)...what does that equal...red flags...then an audit...then...tax fraud? Link to post Share on other sites
Balloon guy 158 Posted November 20, 2009 Share Posted November 20, 2009 #1 we covered this already above...you really use your second post on this? the first 10 should be special...#2 even if it all works out perfect and no1 realizes you owe taxes next year when you win it back...#3 it will never stand up in court...especially if you do it multiple years in a row...theres really not that much of a reason to pay taxes on money that you dont cash out from online sites...and...if your making enough money it would be worth it to try something like this your probably moving around large amounts of money often, which means you have large amounts coming in and out of your bank account regularly (>10,000)...what does that equal...red flags...then an audit...then...tax fraud?How about this then.Get to know an englishman/womanDump your money to them in decemberHave him/her withdrawal the money, THEN convert it to Euros and ship it to CanadaDid I mention you need to make a Canadian friend as well?Drive to Canada and 'meet' your friendrecieve Euros and drive homeIf stopped at customs, declare that the only thing you bought while in Canada was a canadian version of Monopoly, which you have cleverly replaced the play money with the Euros.Go to your local bank and tell them you just got back from a trip to europe and forgot to convert your money.Convert your illgotten gain in small increments in the rnage of $105 Euro-$320 Euro each weekIf amount is over $5,000 US then you might want to open new accounts in mulitple banks because otherwise your next shipment of euros will be coming in before you finish convertingJust in case it might behoove you to make two friends in Canada, but no more than 3, otherwise they will visit often. Link to post Share on other sites
colonel Feathers 5 Posted November 21, 2009 Author Share Posted November 21, 2009 after serious consideration, ive decided to dump it to my friend in england. Link to post Share on other sites
bbgun 0 Posted November 21, 2009 Share Posted November 21, 2009 after serious consideration, ive decided to dump it to my friend in england.Congrats, I hear Leavenworth can be lovely this time of year... Link to post Share on other sites
Lrgetrout 1 Posted November 21, 2009 Share Posted November 21, 2009 after serious consideration, ive decided to dump it to my friend in england.Say hi to Bubba for me. Link to post Share on other sites
dabetka 0 Posted November 21, 2009 Share Posted November 21, 2009 Exactly what Mark said.There is no way to get out of paying your taxes, none.Well maybe one, if your big breasted wife is willing to spend a couple nights with Bill Clinton then he will give you a full pardon and you can skip out on paying over a $100 million in back taxes.But that's the only way.1 way: Become an advisor/cabinet member to Obama Link to post Share on other sites
colonel Feathers 5 Posted November 21, 2009 Author Share Posted November 21, 2009 Never knew there was so much negativity floating around these pages.Think positive people, Link to post Share on other sites
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