Tournaments and taxes...

TeeA said:
Been doing this (horses and casino jackpots) a long time without a formal audit. It's doesn't wash dollar for dollar. If you use software to do your taxes you can see the very little impact it has writing loses against wins. Furthermore, you need more than tickets. Legally, you need a journal showing each loss bet with date, time and amount as well as tickets. Did you have any winners while you were losing that 1K? That needs to been documented as well and then declared.

One year I won multiple trips to Vegas (APA). My LO sent me a 1099 because the amount was over $600. I tried to write that off as not true value coming out of a prize fund I paid into all year. The IRS got me the following year. While not an audit, I had to pay additional tax (approx $250) on the amount further reducing the net received which was a joke to begin with considering I got $925 for THREE trips. Sorry got a little sidetracked, but that one has stuck in my craw for a long time.

One last thought. This kind of 1099s are issued for cash or the cash equivalent of prizes won. For example, if you win $300 in cash, a cue and a jacket, etc. valued at $400, you can expect to receive a 1099.
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Sounds right. What a nightmare!

It reminds me of a girlfriend who got on that TV show "Wheel of Fortune." She won a trip to Europe and a few other things. They taxed her on the trip to Europe, which was very high. A trip to Europe was something like $10,000, according to "Wheel of Fortune," and she had to pay a huge tax on it. She said she could have probably gotten the same trip to Europe herself for the money she paid in taxes.

Meanwhile, I was in Atlantic City about 20 years ago, waiting for my friends to finish rolling the dice. I was bored and went to a slot machine. I really don't like slots, but it was something to do. I hit the jackpot for $1,400, I think it was. They had me fill out the tax form right there on the spot and took the taxes out for me. Strange. :p
 
prewarhero said:
this is not true at all. many business run as a sole-prop using the the persons ss#. Not all businesses require incorporation or a license. Moreso, anyone that is paid by 1099 is treated just like a business- IE self employment tax etc...
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I guess mine is different because I'm incorporated. I get confused on all the legal terms. I was just throwing out my experience.
 
Allen Brown said:
I guess mine is different because I'm incorporated. I get confused on all the legal terms. I was just throwing out my experience.
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Taxes are a complicated animal. Each state has different requirements as it pertains to doing business.
 
Our Canadian income tax forms are so easy to fill out.

1. How much money did you make last year.

2. Send it to us.

Our paychecks are taxed. Then when we purchase anything, there is a tax on that. Its called Sales Tax. Well, Sales Tax worked so well that they added another Tax. Its called, GST, or Goods and Services Tax.

How does that work you ask. No one knows for sure other than there is a Tax on our Tax.

Then, when you fill out your income tax at the beginning of the year, you get to pay more tax.

But the great thing is, our Health Care is free. Or is it?

Oh, I forgot, we have heavy Sin taxes.
Over 12 for a pack of smokes. 18 for a 6 pack.

20 to see a movie. 16 for an extra large popcorn, one drink and a bag of M & Ms.
16 is only if you have a movie discount card.

My wife smuggles in 2 beer for me in her purse.

Did I get off topic here, sorry. Its just that I like talking about taxes.
2 years ago I paid an accountant $800 to do my business taxes for me. They got me an audit. Gee, thanks guys, I thought thats why I gave you 800.
I could have gotten audited all by myself.
 
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peteypooldude said:
I won a tournament that was sponsored by a liquor company. Every time I won 1 of those events I had to sign a tax form.
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You could just do what a lot of low-life pool asswipes do around here: just make up a ss number. ha ha problem solved....NOT!

That way an unknown victim gets the tax bill surprise and you can laugh it off knowing you avoided the man.

I'm all for avoiding taxes:cool:, but setting up a helpless victim to be burnt isn't one of those ways I use. But that's just me, I suppose.

Jeff Livingston
 
jhanso18 said:
I saw in the other thread about taxes for pool players. I have some questions if any CPA's or otherwise would like to chime in.

I am by NO MEANS a pro. But, can I write off my travel and hotel expenses on my taxes? I've been known to cash in a tournament here and there from time to time, but I more often go 3-5 rounds and out. (I suck, what can i say...)

I know when I use to race, that I could write off damn near everything. (Gas to get there, gas to race, gear to race, tires, etc.) Is this a similar situation since I AM competing for money? I'm not looking to write off my cue or anything crazy, but Hotel, travel expense, tips and repair while on location, etc?

The reason i ask, is I would play alot more if I could write off my expenses.

Thanks,

Justin
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Legitimately, you can write off expenses only to the extent it offsets the pool income. In other words, you can't deduct those expenses against your w-2wages

However, it doesn't hurt to save the receipts and track expenses in case you do happen to win a score and they get your social security number.
 
prewarhero said:
this is not true at all. many business run as a sole-prop using the the persons ss#. Not all businesses require incorporation or a license. Moreso, anyone that is paid by 1099 is treated just like a business- IE self employment tax etc...
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That's what I've been doing for about 20 years. I lump all of my pool-related income and expenses into "Pool Instruction Business". When I had a table, I could depreciate the cost. I went to a tax accountant when I started filing taxes for the sole proprietor thing, and she explained to me the various things I could do, should do and should be prepared for if the IRS wanted to ask questions. Among other things, she advised a written log of all expenses recorded at the time of each expense.

I've been able to have a profit in each year since I started. If you don't show a profit most years the IRS will point out that what you have is not a business but rather an expensive hobby and the expenses are not deductible.

So, if you are serious about being a "Semi-Professional Pool Player" as your non-day job, I'd recommend that you contact someone who helps with taxes for a living and get their advice.
 
Bob Jewett said:
That's what I've been doing for about 20 years. I lump all of my pool-related income and expenses into "Pool Instruction Business". When I had a table, I could depreciate the cost. I went to a tax accountant when I started filing taxes for the sole proprietor thing, and she explained to me the various things I could do, should do and should be prepared for if the IRS wanted to ask questions. Among other things, she advised a written log of all expenses recorded at the time of each expense.

I've been able to have a profit in each year since I started. If you don't show a profit most years the IRS will point out that what you have is not a business but rather an expensive hobby and the expenses are not deductible.

So, if you are serious about being a "Semi-Professional Pool Player" as your non-day job, I'd recommend that you contact someone who helps with taxes for a living and get their advice.
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Is there a category or number for "pool instruction business"? Just curious. I couldn't find anything pertaining to pool when I looked last, but that was a few years ago.
 
JAM said:
Is there a category or number for "pool instruction business"? Just curious. I couldn't find anything pertaining to pool when I looked last, but that was a few years ago.
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I think I put it under "Instructor" without being more specific. I also sometimes do technical electronic course.
 
I've always been curious about this: What's to stop pool instructors from under-reporting their cash income from teaching lessons?
 
Pool players are great at giving advice, so why not tax advice?
At the poolroom, you will find experts that will give you advice on;
Pills, pharmaceutical and prescription advice on both legal and street drugs.
Medical advice, internal, orthopedic, surgical, therapeutic and massage.
Tax, investments, stocks and bonds.
Sports betting, wagering, Odds at Texas Holdem and handicapping pool players.
Political agenda of the government and elected officials.
Cue stick construction, cue building, Low deflection shafts, trick shots and sucker bets.
MMA, kickboxing, karate and hand to hand combat.
Religion, evangelism, miracles and the Taliban.
Fireworks manufacturing, procurement and getting even.
What time Mom wants them home for supper.
 
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