taxes for Canadians?

[osmosis21]

Hi Im not sure if you are familiar with the tax situation for poker players in Canada, but it is a grey area and I was wondering if you could shed some light on the situation.

As well have any poker players been prosecuted by the CRA to your knowledge for tax invasion?

[CPAEvil]

not sure about prosecution - i have a canadian client but he married a us citizen so its a bit different.

[TerryBorer]

osmosis21 -

I'm not an expert but I am Canadian and sought an expert opinion on that question. The reply I got was that gambling winnings are not taxable in Canada unless it is your profession (the exact wording is more complicated). The impression I got was that the rules are slanted towards the taxpayer and not the CRA.

Terry

[JoeStimpy]

I've heard similar to what Terry posted, unless it is your main source of income it is not taxable.

If it is, you may want to look into incorporating although getting professional advice on the ins and outs of doing so is probably a good idea. The Bryce over at stox site is Canadian and he has mentioned that based on advice he received he incorporated and then had his corporation purchase his poker accounts as assets.

[osmosis21]

Ive heard the above...I think what they use to clarify if a person is a professional is quite broad.

I think Bryce is in a different boat than most ppl since IIRC didnt he win something like 2.7 million last year....

[Fumseck]

The Bryce would fulfill the requirements for being a pro. So he would have to pay taxes.

My father in law is a Chartered Accountant and when I asked him I got a reply similar to Terry's.

[taz115]

My accountant said the same thing… he said not to claim anything for my Million win, but he said if I started to take down 2-3 big wins a year that he would recommend looking at claiming that income… but he is a conservative, by-the book kind of guy.

It is not fair that osmosis is unable to get a straight answer because he shouldn’t have to pay taxes unnecessarily but it would suck to later get told that you are violating the rules.

[TerryBorer]

taz -

Any accountant who tells you not to claim you $1 million dollar win can't be that conservative
Congrats on your win.

Osmosis - If you're making enough to worry, then seek a professional opinion and go with that. Even if you get audited later, you're unlikely to be subject to penalties if you followed a professional's advice and made no attempt to hide your money coming in.

-- Terry

[taz115]