Posted: Tue Oct 30, 2007 10:58 am Post subject: Tax issue
I just read this on the 2+2 forum and it doesn't jibe with other things I;ve read. Any of our legal/tax people want to weigh in on the highlighted part?
Quote:
I talked to my accountant about this sometime back. Professional Gamblers pay essentially the same taxes on income as any other businessman. He has expenses, losses and income, and there are a lot of ways to handle all this. Income isn't counted until you cash out. Losses can be deducted from other income. Money placed in an online site is sort of like money placed in stocks; at the end of the year, you count what you cashed out as income, what you put in as investments, and pay tax at standard rates on the difference. Rake could well be deductible as a business expense. It may even be handled as capital gains rather than straight income.
Joined: 17 Jan 2005 Posts: 2741 Location: The market is a nightmare but I'm in cash!
Posted: Tue Oct 30, 2007 12:47 pm Post subject: Re: Tax issue
Quote:
I talked to my accountant about this sometime back. Professional Gamblers pay essentially the same taxes on income as any other businessman. He has expenses, losses and income, and there are a lot of ways to handle all this. Income isn't counted until you cash out. Losses can be deducted from other income. Money placed in an online site is sort of like money placed in stocks; at the end of the year, you count what you cashed out as income, what you put in as investments, and pay tax at standard rates on the difference. Rake could well be deductible as a business expense. It may even be handled as capital gains rather than straight income.
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