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#1
01-14-05, 07:35 PM
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So let's say you win the jackpot...
... and now you have over $250,000 added in your poker account.
What do you do then? How do you feel about keeping it in Party? How would you go about cashing out? How would you deal with any tax liability? Just wondering.
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#2
01-14-05, 08:28 PM
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I get crushed for this answer every time I give it, but I'll stand by it. Have them wire me the cash and pay the taxes and be done with it. The IRS is second only to the Mob in people I don't screw with. Think about it like this, internet poker is at best a grey area in most states and I am sure they could find a way to prosecute you if they had cause. Don't forget Pete Rose did alot fo things wrong, ALOT and guess what he went to jail for, you guessed it tax evasion. I can't say it strongly enough, if there is any way shape or form that the IRS might find out about any income I would rather claim it than get caught with my pants down. The IRS will not screw around with you on something like that. When I fill out my taxes I claim EVERY penny that is profit at the end of the year, every one. With horses it's easy because they send you a W-2G form for races that pay over $599, on the internet you have to keep track yourself and I recommend doing that diligently.
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If aces didn't get cracked they would be writing books about me! |
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#5
01-15-05, 08:06 AM
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I have said numerous times I am not a winning poker player, getting closer all the time, but not a winning player. I do play alot of horses and alot of off-shore sports wagering. My advice is to keep track of EVERYTHING, all deposits and all withdraws, everything. A few hundred here and there is not gonna be a problem, there is a 300-1 rule on the books about gambling, meaning any SINGLE wager not paying over 300-1 (and this is based on a $2 bet by the way) is not taxable, however if a person displays a pattern of income over a period of time making wagers with smaller payouts there is tax liability.
Pretty much what that means is if your income is derived mostly from sports betting or playing poker you need to file it on your taxes, if you deposit $500 in your poker account and withdraw $900 I would not worry too much about that. Now if you are withdrawing $900 every week off the same initial deposit and those $900's add up to 10 g's or so then yes you should claim it. So lets say you hit the jackpot for $300 grand or so, your probably gonna want that cash and a withdraw like that is gonna attract attention, and screw the pople who tell you to request $999 every week till you get it all to avoid a red flag, it just doesn't work that way. You don't file and the IRS catches up with you, now your screwed, not only are they gonna want the tax you owe but fines and penaltys and late fees, and since they are already looking into your shit they may as well find out where all that cash came from, and when it came from out of the country you have alot of explaining to do, you better hope you can prove (in their eyes) that it was from gambling and not from drugs or terrorism or worse, let's say they take your word for it and believe it's from gambling, now you open up a whole new box of problems huh? MUCH easier is to pay the man his tax money, be pissed for a while and spend the remaining $250,000 any fucking way you want in peace. Inevitably someone will come into this thread and say what a sissy I am for being afraid of the IRS like that and not having the balls to hide the money from them, one of us will end up in jail and the other on a beach somehwere, you figure out which is which.
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If aces didn't get cracked they would be writing books about me! Last edited by Penguinfan; 01-15-05 at 08:17 AM. |
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#7
01-15-05, 02:29 PM
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Tempting...
It sure would be tempting to make a trip to the Caymans, open a bank account there, and then cash out to that account. Then you could make a few
"business trips" to the Caymans each year to "withdraw" some money... |
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#8
01-15-05, 05:02 PM
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i think that i would leave a lot of it online, but in a neteller account, so that i would have instant access to it. not that i would really need to bonus whore with it, but i think that having the flexibility to move it around would be good.
i know that i would end up withdrawing most of it, and i would just pay the taxes on it. sure, it would be a bitch to give back half of it right away, but i would still be left with over 100k, which wouldnt be half bad. |
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#11
01-16-05, 04:40 AM
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Hey,
Well in canada they do not tax you if you say poker is a hobby. Which's nice  .BUT, if you make more than 10k a year off poker, then they do not believe that that is a hobby anymore; since it's a large percentage of most's annual incomes and is a fairly large sum for most . So if you only have poker income, then they'll tax you up the yin... Which's much worse than the tax you Americans pay. As for me... I don't even play the BBJ limits yet, so no point thinking about what i'd do with this 'problem'. Cheers, Gutzz |
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#12
01-16-05, 04:50 AM
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A one time jackpot is not an income under Canadian Tax law.
If a Canadian hits the Jackpot it's tax free. (assuming they are not already claiming their poker earnings as income.... then they have to claim.)
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3rd Grade Reading Level! |
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#13
01-16-05, 05:05 AM
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Ah yes, I forgot about this, I was thinking poker earnings
.! Like the lottery right?Although this does remind me of something I saw in a movie (and movies are never wrong, right?)... Shawshank Redemption, guy inherits 32k or something like that, and a prisoner tells him there's a way he can avoid paying that, by giving it to his wife... Great great movie .Cheers Gutzz |
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