Hypothetical situation. Say at the end of the year you are up for the year. You retrive all of your starting bankroll, leaving ALL of your winnings in Neteller and various sportsbook accounts. Since these accounts are NOT in the US, should you declare your winnings as income for that year? I know that if you have the money in your possession such as in cash or a checking account ,you are supposed to claim it. I know that when you win, they want your money. But when you lose, too bad because you can't deduct it from ordinary income. Any discussion would be appreciated. LT
hanover, I think his question is; Exactly when is income "income"? I personal idea is that if on Dec.31st it is in Neteller--than it probably is considered income, unless the only funds in Neteller are funds that you have put there yourself and not fromanother source such as a book.
Disclaimer; Nothing I say is meant to be taken as correct!
Disclaimer; Nothing I say is meant to be taken as correct!
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by oldmantime:
hanover, I think his question is; Exactly when is income "income"? I personal idea is that if on Dec.31st it is in Neteller--than it probably is considered income, unless the only funds in Neteller are funds that you have put there yourself and not fromanother source such as a book.
Disclaimer; Nothing I say is meant to be taken as correct! <HR></BLOCKQUOTE>
Income is income when you earn it. Its physical location is irrelevant.
hanover, I think his question is; Exactly when is income "income"? I personal idea is that if on Dec.31st it is in Neteller--than it probably is considered income, unless the only funds in Neteller are funds that you have put there yourself and not fromanother source such as a book.
Disclaimer; Nothing I say is meant to be taken as correct! <HR></BLOCKQUOTE>
Income is income when you earn it. Its physical location is irrelevant.
I consider money in neteller my money. The money at books is not your money. For one, if you got a bonus at the book then you can't take it out before the required rollover, and they could also be the next Aces. Don't make the mistake of counting money at books while it is there, because the next year you may be down 10 dimes from an uncollectible book and have nothing to write it off from. My accountant has no problem with me reporting it this way.
Thanks for the replys guys. To further clarify, the Net winnings were ALL in different books as of Jan 1. The money in Neteller was still from the initial bankroll. After Jan 1 some of winnings were withdrawn from books to Neteller. Fishhead, I will BE at The Bash! Looking forward to the course. LT
Bettors have losing streaks...
Offshores go belly up or slow/refuse to pay..
Money transfers via Neteller, Paypal, etc..get delayed or frozen...
With all the nuances involved, I don't call it profit until it comes back into my pocket in the form of cash, and covers the post up and the losers.
Offshores go belly up or slow/refuse to pay..
Money transfers via Neteller, Paypal, etc..get delayed or frozen...
With all the nuances involved, I don't call it profit until it comes back into my pocket in the form of cash, and covers the post up and the losers.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by SENDITIN:
Who the hell is reporting income from offshore gambling establishments? You've got to be kidding me. Anyone get a 1099 from Oly? <HR></BLOCKQUOTE>
Professional gamblers report their earnings. It's a business to them like any other. Tax evasion is a crucifiable
offense in the US. Do you really think that a 1099 is the only way money flows are tracked?
Who the hell is reporting income from offshore gambling establishments? You've got to be kidding me. Anyone get a 1099 from Oly? <HR></BLOCKQUOTE>
Professional gamblers report their earnings. It's a business to them like any other. Tax evasion is a crucifiable
Internet gambling is a "gray area", as it depends on the individual state. To my knowledge, no person has ever been convicted of simple internet gambling.
If you are up 2k, and that money is at a book, you have 2k of income whether or not you cash out. Income is considered "the Right to certain monies" whether or not you actually exercise that right. If you reported it, and then got stiffed, you could deduct it the following year under bad debt.
Another thought... If you are a winner, you are eventually going to have a LOT of money offshore. If you wire in 50k and haven't been paying taxes on gambling winnings, an audit might end up with a tax fraud charge, where you WILL go to jail.
If you are up 2k, and that money is at a book, you have 2k of income whether or not you cash out. Income is considered "the Right to certain monies" whether or not you actually exercise that right. If you reported it, and then got stiffed, you could deduct it the following year under bad debt.
Another thought... If you are a winner, you are eventually going to have a LOT of money offshore. If you wire in 50k and haven't been paying taxes on gambling winnings, an audit might end up with a tax fraud charge, where you WILL go to jail.
Daringly,
Agree with your comments for the most part. You'd have to be unlucky enough to get selected for a full blown audit for them to give a damn about reconciling cash flow...a highly unlikely event unless you've been wiring lots of cash offshore...agree or disagree?
My concern about reporting offshore income would be it's legality. Technically a drug dealer should be reporting his income too. Also what's to prevent you from making a daily sweep of the OTB floor for some offsetting losses? True non-reporting of income would still be a crime, but jail time if you have offsetting losses unreported?
Agree with your comments for the most part. You'd have to be unlucky enough to get selected for a full blown audit for them to give a damn about reconciling cash flow...a highly unlikely event unless you've been wiring lots of cash offshore...agree or disagree?
My concern about reporting offshore income would be it's legality. Technically a drug dealer should be reporting his income too. Also what's to prevent you from making a daily sweep of the OTB floor for some offsetting losses? True non-reporting of income would still be a crime, but jail time if you have offsetting losses unreported?
