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Thread: Taxes on Card Counting Winnings?

  1. #1


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    Taxes on Card Counting Winnings?

    At what point do you have to pay taxes on your card counting winnings? Let's say you play as a hobby and make $5,000 extra dollars per year. Would you have pay taxes on that?

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    For the USA, I believe any profit is taxed.

  3. #3


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    Quote Originally Posted by TAGR View Post
    At what point do you have to pay taxes on your card counting winnings? Let's say you play as a hobby and make $5,000 extra dollars per year. Would you have pay taxes on that?

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    If you wanted to stay completely above board you'd probably be better off structuring an S-Corp or something so you can at least book travel expenses and training material expenses. This way you could pay your
    taxes and not screw your self too much by eating 100% of the cost of business. I'm not really sure how the law would look at a gambling entity or if structuring one would be legal. Looking forward to see if someone chimes
    in with some real world experience in the area.

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    Quote Originally Posted by UncleChoo View Post
    If you wanted to stay completely above board you'd probably be better off structuring an S-Corp or something so you can at least book travel expenses and training material expenses. This way you could pay your
    taxes and not screw your self too much by eating 100% of the cost of business. I'm not really sure how the law would look at a gambling entity or if structuring one would be legal. Looking forward to see if someone chimes
    in with some real world experience in the area.
    You don't have to file as an S-Corp to deduct travel expenses. Filing as a business on Sch C lets you deduct your losses and business expenses. Otherwise you only can deduct gambling losses if you itemize.

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    You can LLC through you Secretary of State office for a nominal fee. Once approved your Articles of Incorporation will be accepted by most banks as documentation of a legitimate business and allow you to open a checking or savings account in the business name. Keep a file of all your receipts related to legitimate expenses for the LLC, losses, tournament entry fees, travel over 50 miles (check the IRS reg on this) and they can all go on your Schedule C as a Sole Proprietorship if you wish. Consult your accountant for more details...if you don't have one, get one.
    Last edited by Wave; 08-12-2019 at 09:19 AM.
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    Quote Originally Posted by Midwest Player View Post
    You don't have to file as an S-Corp to deduct travel expenses. Filing as a business on Sch C lets you deduct your losses and business expenses. Otherwise you only can deduct gambling losses if you itemize.
    You can only deduct travel if your occupation is that of a professional gambler, which the IRS has strict rules about. Anyone can deduct losses against wins, as long as they itemize. Since Trump's tax law changes, the standard deduction is considerably higher, so fewer people find it cost-effective to itemize

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    Many folks file as a business, and they have other jobs. It is common practice that many folks file as a business. MathProf used to do this and I also believe Bootlegger did.

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    In Australia, 0%.

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    Quote Originally Posted by Koz84 View Post
    In Australia, 0%.
    In Australia, recreational gamblers don't pay tax on winnings but the ATO did go after Zeljko & Co some time ago. I understand he did have to pay up but the settlement was confidential.
    Last edited by davethebuilder; 08-12-2019 at 08:20 PM.
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    Be careful about giving legal or taking advice on the internet if you are not a lawyer in the relevant area. Most income is taxed in the US, including gambling winnings.
    "It is impossible to begin to learn that which one thinks one already knows." -Epictetus

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