The ignorance on everything is staggering.
I'd venture to guess 80% of the people who read this forum have not:
Read the new gaming law.
Read anything on gambling and the tax code.
Read anything on how credit cards, EFTs, checks, etc are coded or not coded.
Read anything on how/who has to enforce the new law.
Etc, etc, etc.
There are plenty of things about which I have no clue, but I always try to learn about things that effect me.
Sean
I'd venture to guess 80% of the people who read this forum have not:
Read the new gaming law.
Read anything on gambling and the tax code.
Read anything on how credit cards, EFTs, checks, etc are coded or not coded.
Read anything on how/who has to enforce the new law.
Etc, etc, etc.
There are plenty of things about which I have no clue, but I always try to learn about things that effect me.
Sean
from an IRS perspective, you are an offshore gambler and have offshore bank account(s)?
you may as well go outside IRS headquarters and start waving a big red flag around with a shirt that says "come and get me" on it.
whoever gets assingned your case will not lose. professional death sentence if they do. its shooting fish in a barrell for them.
to each their own, I wouldnt open a foreign bank account for any reason.
you may as well go outside IRS headquarters and start waving a big red flag around with a shirt that says "come and get me" on it.
whoever gets assingned your case will not lose. professional death sentence if they do. its shooting fish in a barrell for them.
to each their own, I wouldnt open a foreign bank account for any reason.
sean1 said:
That is correct, sir. Most people do not realize you have to file as a professional gambler, very few do and you did not mention this earlier. That is also ~20% chance to be audited. I stand corrected, my example is applicable to people who do NOT file taxes as professional gamblers. Thank you for clarifying this.
Data said:
WRONG AGAIN.
You have 2 choices when filing. You can file as a professional gambler or a casual gambler.
If you file as a professional you fill out a schedule C and you deduct your losses from your wins and also can dedcut expenses.
If you file as a casual gambler - you put the word "gambling" in line 21 other income on your 1040 and put the sum of all winning sessions. Then you deduct all of your losing sessions on your itemized deductions.
The following are the net differences and the ONLY differences in the 2 ways of filing:
1. In order to file as a professional you have to be fully trying to make a living gambling. No W2 income.
2. If you file as a casual gambler, there is a chance that your AGI will be high enough to start to phase out your standard deduction (3200 per person last year).
3. If you file as a professional, you have to pay the self employment taxes (ss medicare etc)
There is not one single scenario where your ridiculous post has any fact whatsoever. You simply dont understand the tax code.
And your arbitrary 20% audit number is laughable. Where do you get that from? Your ass? You think the IRS publishes those numbers? Please.
that is what everyone in the court will think if they haul you in there. you must be guilty, or else why is the IRS after you?
I read a story on-line about some guy who declared his Vegas blackjack winnings. I mean, nobody does this. We are not talking big amounts, just some tourist guy. but he followed the letter of the law, he had some winnings and he declared them
he ended up in a full blown audit where they simply didnt believe him that he had declared all his winnings. I dont remember the outcome, but it was an unpleasent situation for the guy.
it costs money to defend yourself. and time and stress. the IRS doesnt care, it doesnt cause them any stress, its just a job to them.
to each their own is the best way to put this. I dont want an account, you can get one if you'd like. You should be OK.
I read a story on-line about some guy who declared his Vegas blackjack winnings. I mean, nobody does this. We are not talking big amounts, just some tourist guy. but he followed the letter of the law, he had some winnings and he declared them
he ended up in a full blown audit where they simply didnt believe him that he had declared all his winnings. I dont remember the outcome, but it was an unpleasent situation for the guy.
it costs money to defend yourself. and time and stress. the IRS doesnt care, it doesnt cause them any stress, its just a job to them.
to each their own is the best way to put this. I dont want an account, you can get one if you'd like. You should be OK.
I think I already covered that. I agree its its smarter to pay.
you do risk audit though by declaring gambling winnings
But having a foreign bank account is a much greater red flag to the IRS then having gambling winnings on your return.foreign bank accounts are right in the center of the IRS bulls-eye these days. many wealthy americans are using them to shield income illegally from US taxation.
so these people are "high value" targets to the IRS. wealthy, guilty people.
Sean1 would not be guilty, he's just a gambler. but he will have to prove he's not guilty if he gets audited.
wasted time, stress and money to do so.
that is the risk of a foreign bank account
you do risk audit though by declaring gambling winnings
But having a foreign bank account is a much greater red flag to the IRS then having gambling winnings on your return.foreign bank accounts are right in the center of the IRS bulls-eye these days. many wealthy americans are using them to shield income illegally from US taxation.
so these people are "high value" targets to the IRS. wealthy, guilty people.
Sean1 would not be guilty, he's just a gambler. but he will have to prove he's not guilty if he gets audited.
wasted time, stress and money to do so.
that is the risk of a foreign bank account
Don't you wish you were in the UK..
Quote:
BIM22017 - Trade: exceptions & alternatives: betting and gambling: the professional gambler
The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade.
...What is the purpose of that statement? So it's not a trade, you still have to pay taxes on your winnings.
Quote:
BIM22017 - Trade: exceptions & alternatives: betting and gambling: the professional gambler
The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade.
...What is the purpose of that statement? So it's not a trade, you still have to pay taxes on your winnings.
No you don't, I have a certified statement from the UK revenue service saying so.
All UK Gambling transactions have been tax exempt since March 2001. The only grey area was whether a professional gambler would be classed as a trade, which was clarified under BIM22017 a couple of years ago based on an old court ruling Graham v Green [1925] 9TC309.
All UK Gambling transactions have been tax exempt since March 2001. The only grey area was whether a professional gambler would be classed as a trade, which was clarified under BIM22017 a couple of years ago based on an old court ruling Graham v Green [1925] 9TC309.
Data said:
That is not true you can define a net win for a "session" as long as the "session" is reasonable (like yearly net) its fine.
That would be saying on a slot machine you need notes on every pull, or pull tabs, its net from a session not net on every wager.
(
vanzack said:
Yes, you can zero out your gambling wins, but the extra gross income before your deductions may put you into a higher tax bracket due to the Alternative Minimum Tax. This happens to me every year. Even if I had a losing year and zero out, I still pay more taxes than I would have due to this stupid AMT law.
