ALL of the above mentioned leaves a "paper trail". The best way to deal offshore is through agent here in the USA. If you MUST use offshore spots for whatever the reason may be. Find yourself a AGENT that picks up and delievers CASH...........NO PAPER TRAIL. Everything else is questionable at best.
I myself have ONLY one offshore joint an its Credit spot with Agent.
I myself have ONLY one offshore joint an its Credit spot with Agent.
BarneyFife said:
Filing as a professional gambler has pro's and con's:
PROS
1. You can file a schedule C which allows you to deduct your losses against your wins and also allows you to deduct gambling expenses such as internet access, travel cost, etc. Your AGI is not effected like as a casual gambler because you are only recording a net win or loss.
2. It allows you to make certain tax free contributions to IRA's and other retirement accounts.
CONS
1. It opens you up to self employment taxes, which are 15% for SS, Fica yada yada yada.
2. The IRS will hold you to a very high standard to prove you are a professional gambler. Things that will exclude you: if you have other W2 income, if you havent made a profit 3 of the last 5 years, and other nebulous measures.
3. Your chances of being audited when you file as a professional gambler are almost guaranteed.
4. Last but not least - there is a stigma attached to being a professional gambler - its kind of what people have stated above as being an activity that is "looked down upon". Try going to a bank to get a mortgage and show them your tax forms that say professional gambler.
For me and for most - casual gambler status is the only answer.
maxdemo said:
Yes.
Pinnacle allows 50k withdrawals to neteller at a time.
Thats what I said above and why I am so determined to get this right - my amounts will make me a sure target for criminal investigation if I just totally ignore it.
I have made a huge effort and am not even done yet - but I have been extremely surprised at the 5 books that I deal with cooperation in getting me everything I need.
I have totally recreated my gambling log for 2005 through these reports. I have also on order from all land based casinos my reports for 2005. So while at first I thought it was impossible - with a weeks worth of solid work I have what I feel I need.
:toast:
Van thanks for shedding light on this. I will now start to keep gambling logs although I find it very hard to do in playing 250 NL tourneys at the Hard Rock in Fort Lauderdale, Florida, through offshore accounts (than admiting to a questionably legal activity), and playing craps on cruise ships.
I have all kinds of silly questions. Lets say for example, I reup my Pinnacle account 1000 a month for 12000 total for the year of 2000. I play with this money and go up and down, up and down for 6 years. In 2006 I have 12000 dollars left and I pull it out and put it back into my bank. I would have to put that 12000 as winnings for the year of 2006? Eventhough none of that money is technically winnings.
This whole thing sounds very confusing and does not seem like even the IRS has everything straight especially when you are talking about offshore wagering. Its very easy if you go to Vegas and hit a slot machine for a 50,000 and they send in the appropriate forms or if you hit the lottery.
I have all kinds of silly questions. Lets say for example, I reup my Pinnacle account 1000 a month for 12000 total for the year of 2000. I play with this money and go up and down, up and down for 6 years. In 2006 I have 12000 dollars left and I pull it out and put it back into my bank. I would have to put that 12000 as winnings for the year of 2006? Eventhough none of that money is technically winnings.
This whole thing sounds very confusing and does not seem like even the IRS has everything straight especially when you are talking about offshore wagering. Its very easy if you go to Vegas and hit a slot machine for a 50,000 and they send in the appropriate forms or if you hit the lottery.
Rawpimple and others--
I am fairly sure that gambling on cruise ships is perfectly legal and doesn't have to be filed. Once you're physically overseas and out of the jurisdiction of the country, none of it matters. My father is a CPA, and we've spoken about this several times. Though overseas betting is legal in the countries that your book is in, bringing the money back into the country is the illegal part. The part I question is whether or not on an audit, the IRS can really consider overseas records legit. I mean, what else can you give the IRS than a printout of your bets for each month straight from the source? If the IRS doesn't go to the source themselves, there is no legit proof that could harm you in an audit. That being said, I wouldn't fudge the numbers around, but as was said earlier in this thread, 90% of all audits are incredibly easy and it's all done either through the mail or by a short visit to a local office of just some paperwork. Honestly, if I were a businessman and not a college kid, I'd be more worried about some of my other records being off than my gambling log. The IRS isn't going to bust you for showing a few hundred grand in gambling winnings and losses, especially when the auditor sees it's $110 to win $100 on every bet down the list. He/she will likely just shrug at it, maybe point out a mistake or two, and you'll be stuck with the penalty.
In truth, unless you're super cautious about the whole thing, the best thing to do is just ignore it all. I'm sure probably 95% of us on here bet less than $1000/game, and the IRS has better things to do than to bust $100/game bettors for not filing taxes. I'd be shocked to hear anyone on this site get even questioned about gambling, ESPECIALLY considering the large boom of offshore gambling. Until the internet is regulated, don't worry about it. I mean I don't want to say that it's not a valid point, because it really is. But for most of us, this really doesn't apply and I think a bigger deal is being made out of it than necessary. Just my 2 cents.
--AFLGuru:toast:
I am fairly sure that gambling on cruise ships is perfectly legal and doesn't have to be filed. Once you're physically overseas and out of the jurisdiction of the country, none of it matters. My father is a CPA, and we've spoken about this several times. Though overseas betting is legal in the countries that your book is in, bringing the money back into the country is the illegal part. The part I question is whether or not on an audit, the IRS can really consider overseas records legit. I mean, what else can you give the IRS than a printout of your bets for each month straight from the source? If the IRS doesn't go to the source themselves, there is no legit proof that could harm you in an audit. That being said, I wouldn't fudge the numbers around, but as was said earlier in this thread, 90% of all audits are incredibly easy and it's all done either through the mail or by a short visit to a local office of just some paperwork. Honestly, if I were a businessman and not a college kid, I'd be more worried about some of my other records being off than my gambling log. The IRS isn't going to bust you for showing a few hundred grand in gambling winnings and losses, especially when the auditor sees it's $110 to win $100 on every bet down the list. He/she will likely just shrug at it, maybe point out a mistake or two, and you'll be stuck with the penalty.
In truth, unless you're super cautious about the whole thing, the best thing to do is just ignore it all. I'm sure probably 95% of us on here bet less than $1000/game, and the IRS has better things to do than to bust $100/game bettors for not filing taxes. I'd be shocked to hear anyone on this site get even questioned about gambling, ESPECIALLY considering the large boom of offshore gambling. Until the internet is regulated, don't worry about it. I mean I don't want to say that it's not a valid point, because it really is. But for most of us, this really doesn't apply and I think a bigger deal is being made out of it than necessary. Just my 2 cents.
--AFLGuru:toast:
I'm actually going into my dad's office this summer to start learning the business and might end up in the field one day, despite the fact that my degrees at FSU are going to be in History and General Music. Completely a 1-man operation. Hell on the old man this time of year. I also know that he gambles just like the rest of us do, just on a lot more of a "casual" basis, and he's never declared a penny in gambling funds (probably because Mom would kill him if she knew...). He's gone through an audit once, I believe two years ago, and the concepts of gambling never came up. So I'm pretty up on the topic, and if I don't know something, I can find the answer. If the old man came out okay, I'm sure we all pretty much will.
Rawpimple and others--
I am fairly sure that gambling on cruise ships is perfectly legal and doesn't have to be filed. Once you're physically overseas and out of the jurisdiction of the country, none of it matters. My father is a CPA, and we've spoken about this several times. Though overseas betting is legal in the countries that your book is in, bringing the money back into the country is the illegal part.
WRONG WRONG WRONG WRONG WRONG WRONG!! LET ME SAY IT AGAIN WRONG!!!
This is the biggest misconception fo any. IT DOESNT MATTER WHERE YOU MAKE THE MONEY IT IS TAXABLE. On a cruise ship in Intl waters? In Amsterdam? In the Bahamas? ALL TAXABLE!!
I havent even read the rest of your advice - I stopped right there - but I am going to read the rest right now and I hope its not as bad as your first few lines.
You better go talk to your dad again.
I am fairly sure that gambling on cruise ships is perfectly legal and doesn't have to be filed. Once you're physically overseas and out of the jurisdiction of the country, none of it matters. My father is a CPA, and we've spoken about this several times. Though overseas betting is legal in the countries that your book is in, bringing the money back into the country is the illegal part.
WRONG WRONG WRONG WRONG WRONG WRONG!! LET ME SAY IT AGAIN WRONG!!!
This is the biggest misconception fo any. IT DOESNT MATTER WHERE YOU MAKE THE MONEY IT IS TAXABLE. On a cruise ship in Intl waters? In Amsterdam? In the Bahamas? ALL TAXABLE!!
I havent even read the rest of your advice - I stopped right there - but I am going to read the rest right now and I hope its not as bad as your first few lines.
You better go talk to your dad again.
Rawpimple - you are responsible to pay tax based upon the bets you make during a calendar year. So if you dont withdraw or deposit for 5 years - over the course of those 5 years you are required to claim you winnings and losses.
AFLguru - your assumptions about the IRS might be true or they may be false. But you make some far fetched assumptions. And you are speculating in everything you say. There is nothing factual in your posts and your assumptions could one day get you and others in trouble.
ONCE AGAIN - I AM NOT TELLING ANYONE WHAT TO DO. I AM NOT TELLING YOU THE LIKELIHOOD OF GETTING FINES, EVER HAVING ANYTHING AT ALL HAPPEN, OR GOING TO JAIL IF YOU IGNORE YOUR GAMBLING WINNINGS. I AM TELLING YOU WHAT THE LAW STATES - AND THOSE ARE FACTS THAT CANT BE ARGUED.
AFLguru - your assumptions about the IRS might be true or they may be false. But you make some far fetched assumptions. And you are speculating in everything you say. There is nothing factual in your posts and your assumptions could one day get you and others in trouble.
ONCE AGAIN - I AM NOT TELLING ANYONE WHAT TO DO. I AM NOT TELLING YOU THE LIKELIHOOD OF GETTING FINES, EVER HAVING ANYTHING AT ALL HAPPEN, OR GOING TO JAIL IF YOU IGNORE YOUR GAMBLING WINNINGS. I AM TELLING YOU WHAT THE LAW STATES - AND THOSE ARE FACTS THAT CANT BE ARGUED.
