middleofnowhere
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Pro poker player says new tax laws forced him into semi-retirement https://share.google/H8PyeBFUud0vuzRBd
Is a pool tournament not gambling?
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I remember we had a pretty complete thread about this several months back.
Somebody with better Google fu than me could probably find it…
Somebody with better Google fu than me could probably find it…
There was a court case in the state of Washington where a losing party in a money match claimed it was a gambling debt and therefore uncollected.
The judge found it was a contest of skill with elements of luck. They were required to pay the debt.
The judge found it was a contest of skill with elements of luck. They were required to pay the debt.
It isn't.
I know a team group that placed high in vegas, all got taxes taken out before getting their checks as payment.
I think the only time that is supposed to happen is if they have not submitted a TIN to the organizer or they have no TIN. That will often be true for foreign players.
Well, maybe one other situation. I have been contacted twice by the IRS about players who had played in tournaments I organized. They said something like, "If you see Mr. Smith again, please let us have first crack at any funds he might be due. He seems to be careless in his bookkeeping and tax filing."
There was a court case in the state of Washington where a losing party in a money match claimed it was a gambling debt and therefore uncollected.
The judge found it was a contest of skill with elements of luck. They were required to pay the debt.
My recollection is that usually pool is treated as a game of skill, where wagers between participants are not illegal. Bets on the rail is a different story.
Games of chance (like dice or roulette) and games of mixed skill and chance (like poker) are usually the ones that are illegal except at licensed casinos.
Both the above would depend on state laws.
Whether this distinction matters under the definition in the BBB, I don’t know.
It is gambling when you call a ref over and they stand 8 feet from the table with their hands behind their back and as they start to twittle their thumbs they say "OK, go ahead".
The shooter triple hits the cueball after which they call " No foul " and then ask what foul you were worried about.
Or so I have been told.
The shooter triple hits the cueball after which they call " No foul " and then ask what foul you were worried about.
Or so I have been told.
It was a team outta Pueblo CO....
As I recall when I won our WI state BCA tournament they deducted taxes from my winnings.
I read the whole article. That new rule where you can only deduct 90% of your gambling losses (against your winnings) does sound really dumb. It made a good point that poker winnings are thin margins, and that 10% swing will completely change many player's taxes.
It doesn't jive with other tax laws. In the stock market, I've had years where I had 100k in profits, and 100k in losses. They wipe each other out. If the same rule was applied to that, the losses would be capped at 90k, and I would have shown an IRS profit of 10k that I'd then owe taxes on.
IDK how this affects legit professional pool players that legit file taxes with their pool winnings. From what Rexus posted above, they would file as a professional, not as gambling winnings, in which case this change would not seem to apply at all. But again, I have no idea how the real pool pros actually do their taxes.
It doesn't jive with other tax laws. In the stock market, I've had years where I had 100k in profits, and 100k in losses. They wipe each other out. If the same rule was applied to that, the losses would be capped at 90k, and I would have shown an IRS profit of 10k that I'd then owe taxes on.
IDK how this affects legit professional pool players that legit file taxes with their pool winnings. From what Rexus posted above, they would file as a professional, not as gambling winnings, in which case this change would not seem to apply at all. But again, I have no idea how the real pool pros actually do their taxes.
I imagine that if a gambler got a lawyer and formed an LLC and had investors (backers) and did everything through the LLC, the taxes would work better. Just pay a lawyer. Isn't that the point of laws?
“No matter how cynical I get, I just can’t keep up.” – Lily Tomlin
Just like tennis players. I've declared tournament prizes on my Schedule C. It's not complicated, but you do have to show a steady profit or the IRS will say it's just a hobby.