Irs

WorldRunner · Dec 16, 2004

blue edwards said:
sounds to me like world runner knows what he is talking about. i am not a teller but i have never heard of any teller here ever reporting anything other than a cash transaction.

i do all my sportsbook transactions thru neteller or echeck so, i never have a check to cash/deposit from an offshore book. if you are worried about that...what i would do is deposit the check rather than cash it. and, i would deposit it will other checks so it doesn't stand out. then, i'd wait a few days and withdraw the cash from your account via atm.

I honestly don't know what the tellers DO but I'm aware of what they can do. A lot of it is internal too... So a teller may flag something but only to be checked internally. I'm sure that 99% of those are deemed as nothing...

The only problem with a check...is if you took a check to a bank as a downpayment for a house... You have to give the source of the income. We made a 20k downpayment on our house and they had to know exactly where we were getting the money... So as long as you don't take a check from Pinnacle to buy a house you should be ok

LOL

blueedwards · Dec 16, 2004

i believe that rule of showing where the money came from only applies for transactions within 30-60 days of the application. if i remember correctly from when i bought my house, the mortgage broker wanted the last two months of bank statements and any transactions in between...so, if i deposited a huge check from pinnacle in january and bought a house in march, they would have no reason to suspect anything.

this of course is totally seperate from any irs issues. i am not in a position to speak about the tax implications of any of this. in fact, that whole question kinda scares the crap out of me.

WorldRunner · Dec 16, 2004

blue edwards said:
i believe that rule of showing where the money came from only applies for transactions within 30-60 days of the application. if i remember correctly from when i bought my house, the mortgage broker wanted the last two months of bank statements and any transactions in between...so, if i deposited a huge check from pinnacle in january and bought a house in march, they would have no reason to suspect anything.

this of course is totally seperate from any irs issues. i am not in a position to speak about the tax implications of any of this. in fact, that whole question kinda scares the crap out of me.

I was more or less making a joke... I'm just saying if you showed up WITH THE CHECK and gave it to them as down payment for house... You might have an issue. I'm actually not sure... But I'm guessing you would. You have to justify that the funds came from a leigitimate source and I'm not sure if an offshore casino would be legit... Maybe it would

I don't know about taxes either...I pay mine... But I go through an accountant so other than giving him records I don't really have any knowledge of how it works or how to complete any type of form. I've never done my own taxes. Hard for me to work with #'s when the #'s I'm dealing with are amounts I have to pay

fathead · Dec 16, 2004

Lawrence said:
My question is what constitutes a professional gambler, and what are the rules for them? Also, when it is time to actually do your taxes, how do you reach that number of "final winnings?" Do I refer to the diary I've been keeping, and just subtract the total losses from the total winnings and pay on that nimber? Also, am I supposed to factor in the money at all of my outs, or just what I've actually been paid out? I realize I have alot of questions, but I appreciate everyone sharing their knowledge on the subject.

All money won is income (report on Form 1040, other income). All money lost is an itemized deduction (report on Schedule A, gambling loss). "Lumping" the two numbers together into one net figure and just reporting that is not allowed. You must report the two figures separately. Don't forget to include rebates and bonuses in your "won" figure. These are considered "comps" and must be included in winnings. Not reporting the gambling income at all is perjury (losing year) or perjury + tax evasion (winning year).

fathead · Dec 16, 2004

As far as whether you have actually withdrawn the net winnings or not, it really does not matter. If you earn $1000 interest at the bank and $500 in dividends off of your stocks, it does not matter if you have withdrawn the money or not, you still owe income tax on the $1500. Same thing here. You win, you have winnings to report, you lose, you have losses to report.

If you have a book that goes under and you lose your money, your accountant might can help you write it off as a "total loss" of some kind, investment or business.

You wanted the rules, here they are. Up to you and your accountant to decide what to do with them.

WorldRunner · Dec 16, 2004

fathead said:
As far as whether you have actually withdrawn the net winnings or not, it really does not matter. If you earn $1000 interest at the bank and $500 in dividends off of your stocks, it does not matter if you have withdrawn the money or not, you still owe income tax on the $1500. Same thing here. You win, you have winnings to report, you lose, you have losses to report.

If you have a book that goes under and you lose your money, your accountant might can help you write it off as a "total loss" of some kind, investment or business.

You wanted the rules, here they are. Up to you and your accountant to decide what to do with them.

That's good information for all... Thanks

poopah · Dec 16, 2004

Hey people, quit worrying so much about the IRS, It is a known fact that the IRS does not like to go after gamblers because it is impossible for the IRS to prove what they have lost or won, you can put money in to your account, just go to your local casino and withdraw money from atm, they can never prove how much money you have lost, and being that it is a known fact that over %95 lose they really do not like to pursue gambling earnings, because all that the gambler has to say is well I lost it all back to the casino. it is very hard to prosecute people about gambling earnings, because only they know what they made or lost.

MaddEnemy · Dec 16, 2004

poopah said:
Hey people, quit worrying so much about the IRS, It is a known fact that the IRS does not like to go after gamblers because it is impossible for the IRS to prove what they have lost or won, you can put money in to your account, just go to your local casino and withdraw money from atm, they can never prove how much money you have lost, and being that it is a known fact that over %95 lose they really do not like to pursue gambling earnings, because all that the gambler has to say is well I lost it all back to the casino. it is very hard to prosecute people about gambling earnings, because only they know what they made or lost.

I'll go with that!

bigbet1234 · Dec 16, 2004

Comps are not taxable

fathead said:
All money won is income (report on Form 1040, other income). All money lost is an itemized deduction (report on Schedule A, gambling loss). "Lumping" the two numbers together into one net figure and just reporting that is not allowed. You must report the two figures separately. Don't forget to include rebates and bonuses in your "won" figure. These are considered "comps" and must be included in winnings. Not reporting the gambling income at all is perjury (losing year) or perjury + tax evasion (winning year).

blueedwards · Dec 16, 2004

poopah said:
Hey people, quit worrying so much about the IRS, It is a known fact that the IRS does not like to go after gamblers because it is impossible for the IRS to prove what they have lost or won, you can put money in to your account, just go to your local casino and withdraw money from atm, they can never prove how much money you have lost, and being that it is a known fact that over %95 lose they really do not like to pursue gambling earnings, because all that the gambler has to say is well I lost it all back to the casino. it is very hard to prosecute people about gambling earnings, because only they know what they made or lost.

if only 5% are winners, they all must post here!

fathead · Dec 16, 2004

bigbet1234 said:
Comps are not taxable

Of course Comps are taxable! The question is whether they can be considered gambling income and thus can be offset by gambling losses. A court decided this some time ago. See the following article.

"
Initially, the IRS took the position that the value of "comps" received were not gaming income, and therefore taxpayers were not entitled to write off losses against the value of these comps. However, the IRS required these comps to be reported as income, and was subsequently taken to Tax Court by a taxpayer.
The taxpayer in this case played primarily at one casino over a period of three years, during which time he received free automobiles, vacations, jewelry and other complimentary goods and services from the casino. He received Forms 1099-MISC (Miscellaneous Income) from the casino, reflecting the value of these comps as prizes and awards. The taxpayer included theses amounts on his tax returns and also an equal amount as 'gambling losses' on a Schedule A.
The fact that the taxpayer had gambling losses vastly greater than the amount claimed was not disputed by the IRS, but the IRS disallowed his deduction for gambling losses based upon the argument that the comps were not gambling winnings but an "award," thereby preventing the taxpayer from deducting any of his gambling losses. The taxpayer challenged the IRS in Tax Court in 1996 and prevailed when the court ruled that the value of the complimentary goods and services received as an inducement to gamble could be rightfully represented as gains from gambling, and offset by gambling losses.
We believe that coupons and cashback fall under the category of comps, and should be treated as gaming winnings. Although it would be more favorable to reduce losses rather than add to winnings, at least we can treat them as gaming income and get to write off losses against them.
By the way, we checked the status of this case when we wrote this article, and the IRS has not appealed the ruling to date, so it will remain the law unless they appeal and the ruling is overturned.
"

blueedwards · Dec 16, 2004

does anyone in the world report comps as income?

fathead · Dec 16, 2004

blue edwards said:
does anyone in the world report comps as income?

In this case the taxpayer received a 1099 from the casino for the value of the comps given. I would say that this is uncommon, but perhaps others can provide more info.

In any case, this is the correct way to report your winnings/losses/comps. Armed with this information, you can now decide on the best course of action for your own situation.

blueedwards · Dec 16, 2004

if i got a 1099, i would report it. but i would be pissed about it.

Lawrence · Dec 16, 2004

fathead said:
As far as whether you have actually withdrawn the net winnings or not, it really does not matter. If you earn $1000 interest at the bank and $500 in dividends off of your stocks, it does not matter if you have withdrawn the money or not, you still owe income tax on the $1500. Same thing here. You win, you have winnings to report, you lose, you have losses to report.

If you have a book that goes under and you lose your money, your accountant might can help you write it off as a "total loss" of some kind, investment or business.

You wanted the rules, here they are. Up to you and your accountant to decide what to do with them.

Thank you very much for your response.

bigbet1234 · Dec 16, 2004

Comps IE. free rooms, food, etc, are not taxable. My CPA researched this for me.

Now cars, boats and such, i imagine they are. I am not that big of a player.

BB

fathead said:
In this case the taxpayer received a 1099 from the casino for the value of the comps given. I would say that this is uncommon, but perhaps others can provide more info.

In any case, this is the correct way to report your winnings/losses/comps. Armed with this information, you can now decide on the best course of action for your own situation.

fathead · Dec 16, 2004

Lawrence said:
Thank you very much for your response.

My pleasure. Good luck in your wagering.

buddym · Dec 16, 2004

It would seem to me that a solid local is the only way to go . You dont have that problem.That!s not good news for the bonus who!S, but the only way i would go. ThanksBuddym par4