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But he does have that left-handed power stick to protect Nomar.
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I would think one of the benefits to online books is the ease of documentation they provide. If you want to file on your winnings, on Dec. 31st pull up your account history at each out, print it up (might be quite a few pages), and total the results. Tedious as that might be, it'll certainly cover your butt better than handwritten records of bets with street outs or even collections of Vegas book tickets. And if you get audited you get to drop a big box of paperwork on an IRS desk and say "enjoy!"
I agree that it's wrong to have to pay on it, but this is a schizo country when it comes to gambling. Just look at all the gambling organizations, race tracks and lotteries and such, supporting the Kyl Bill.Comment
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Bob, in the UK all gambling winnings are free of tax. Moreover, they don't even have to be reported. No matter how much you make, you're free from any government intervention. I really don't know what the situation is if you declared yourself a professional gambler. Maybe you'd be taxed, maybe not. But overall gambling is one area where the revenue service has no say here in the UK.Comment
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I forgot to mention that no account anywhere in the world (unless its anonymous), can really be confidential. The NSA monitors all global communication, so whether it's a local phone call or a bank wire, nothing is private. Unless your account is held under a number instead of a name (many offshore banks will do this), your name will be logged. Apparently the IRS does cooperate with the NSA in money-laundering cases, but it doesn't take much to lower the benchmark and go after so-called 'tax evaders'...Comment
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Cons, Where are these offshore banks that use an account number without a name? You'd be able to bank with complete privacy. Sounds good.Comment
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Bob,
No misconception here - Canadians might have to if they win, we don't.Comment
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Usually these 'number' accounts are used for quite wealthy people to simply protect their identity form bank employees. Strange, but true. This way no addresses or names are in the system, and nobody except for the people at the very top know who the people behind the numbers are. This prevents bent empolyees form selling personal information to criminals who might want to kidnap someone for ransom, etc.
I will have to look into the number thing in a few countries to see what the situation is. It's also best if the country involved has a tidy banking system that doesn't open up its books to anyone.Comment
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Cons/AV2...I believe that the rules are pretty much the same in Canada, Australia, the U.K. etc...because I've read many cases on it from all three jurisdictions. Gambling winnings are not taxable IF you gamble as a "hobby or for amusement."
AV2, I have read previous postings of yours about "professional" gamblers being dinged for tax in Australia. But you'd be suprised at what flimsy evidence the government requires to decide you are a professional. Generally, it comes down to whether you win money consistently or not. Even if you take home an extra few thousand a year...they look at it like a part time business you're running on the side and deem you a "professional".Comment
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Well, professional punters in the UK who even write books about gambling (there's the self-incriminating evidence
) do not pay tax on the winnings through the revenue service.
Instead, you pay tax on the bet stake or winnings with the sportsbook itself, so in a way you decide whether your winnings or the bet stake is taxed. But it's the sportsbook that automatically holds the tax money and hands it over. That's why you don't have to declare winnings here in England, because all the taxes are already taken care of by the sportsbook.
But by betting offshore you can legally bet tax free and not pay a penny, even if you're a pro who publishes books on how to beat the bookies.Comment
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I'll be over on the next boat.Comment
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Bob,
Which government are you talking about?Comment
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www.irs.gov
Taxpayer Help and Education
Gambling Income and Expenses
Topic 419
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[ Click for Graphics Version ]
Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos, as well as the fair market value of prizes such as cars and trips.
If you receive $600 or more in gambling winnings, the payer generally is required to issue you a Form W-2G. If you have won more than $5,000, the payer generally is required to withhold 28% of the proceeds for Federal income tax. If you did not provide your social security number to the payer, the amount withheld will be 31%.
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You can deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Schedule A of Form 1040. However, the amount of losses you deduct cannot be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. See Publication 529, Miscellaneous Deductions, for information on record keeping or Publication 525, Taxable and Nontaxable Income. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.Comment
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What a rip-off! Say you win 1 million bucks betting in a year. You would then pay, say, 30%, or 300 dimes, tax. The following year, you lose 1 million dollars. Although you made zero money in your two years of playing, you had to pay 300 dimes in tax! who in their right mind can buy into this Government-steals-your-money-program. And if you take guys like the Pokers, who cleaned up last year but got taken to the cleaners this year, it is easy to see how this scenario can be a reality.Comment
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Finding this boring, but somewhat intriguing, further reading advises:
Gambling Losses Up to the Amount of Gambling Winnings
You must report the full amount of your gambling winnings on line 21, Form 1040. You deduct your gambling losses on line 27, Schedule A (Form 1040). You cannot deduct gambling losses that are more than your winnings. Only gambling losses incurred during the year can be deducted on Schedule A (Form 1040).
You cannot reduce your gambling winnings by your gambling losses. You must report the full amount of your winnings as income and claim your losses as an itemized deduction. Therefore, your records should show your winnings separately from your losses.
Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following information.
The date and type of your specific wager or wagering activity.
The name and address or location of the gambling establishment.
The names of other persons present with you at the gambling establishment.
The amount(s) you won or lost.
See Publication 529 for more information.
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All this drama. It's too much of a hassle. I know I don't have all my won/loss records. I use 2 sportsbooks, and go up and down all year. I just assume not report anything after all of this analysis. The sportsbooks don't give the US Govt. any records, so it looks like no one will know. I am still confused about all of this. At least I have until next April to figure it out. Plus 28% on winnings is absurd. I know I'm not the only one who feels this way. Intrepid, thanks for your postings; they helped a lot.
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