Poker tax

supericesuperice
in Online Poker
Is there an FAQ anywhere on best practices for handling poker winnings? What if I just won a lot in a cash game? Should I avoid depositing this into my bank account? What if the winnings are merely offsetting undocumented losses?

Comments

  • BBC ZBBC Z
    If you think that you've won enough money that the taxes are an issue, then consult a lawyer. Everything else is just opinion and won't save you if the gov't gives you an audit.
  • RAM_EhRAM_Eh
    Unless playing poker is your profession, don't worry. Winning money at the casino is just the same as wining the 649, Tax Free.
  • supericesuperice
    If you think that you've won enough money that the taxes are an issue, then consult a lawyer. Everything else is just opinion and won't save you if the gov't gives you an audit.
    ok, thanks for answer
  • m_dolensm_dolens
    Dead Money wrote: »
    Unless playing poker is your profession, don't worry. Winning money at the casino is just the same as wining the 649, Tax Free.

    winning 649 is tax free??
  • ReefAquariumReefAquarium
    m_dolens wrote: »
    winning 649 is tax free??

    Yes.

    Although 649 is a tax on stupidity, there are no additional taxes....
  • HP_JohnHP_John
    Less than 52% of the $ goes to prizes, so it's a 48% rake!
  • JimmyHoJimmyHo
    if you consistently win in a cash game at a local poker club, I would avoid depositing the cash in the bank to avoid a possible audit by CRA. They can do a net worth assessment if you have more cash coming in than earnings. Better to spend $50 a year for a safety deposit box and stick the funds in there. Although it would be difficult for them to prove that you won it at a local club vs a casino.
  • KristyKristy
    m_dolens wrote: »
    winning 649 is tax free??
    \

    No, they just take some of your money and pay the taxes in advance as I understand it.
  • Marty SmithMarty Smith
    It is correct that you will need tax advice regardless of what you read here. It could be a rather inexpensive hour of service and peace of mind, just so you know where you stand.

    In my conversations with a Canadian tax adviser, winnings derived live or online may be deemed taxable IF your skill level, playing regularity, and bankroll could be seen by the CRA as you ranking of professional status.

    Here is an example of extremes: You open your first account at a site with $50. Play a couple games and realize you suck real bad then put the last $30 into satellite that you actually donk into a seat for the Sunday Million! You play the Sunday Million while finishing off a 12PAK of Blue and before you know it, you make the final table with more donk shi.t luck and take home $180,000US, just before you pass out.

    Not only do you suck luck and can drink like a beachcomber, but this is clearly a tax free winning as described to me by a professional who has researched this.

    Let's take that same prize now and say you have been playing for 3 years using OPM and your bankroll has grown from its original $50 to $22,000 by winning numerous tournaments, when you decide to buy in for the Sunday Million tourney forementioned. Now your poker account is at $202,000 and you will be very hard pressed to deny this is not part of your professional skill set.
  • Marty SmithMarty Smith
    http://www.pokernews.com/news/2008/02/sweden-tax-spider-poker-players.htm

    Looks like Canada is using this as well. So if you use any sites like Moneybookers, ewallet etc. for big withdrawals, I am sure some little electrode in a computer somewhere is going to overload.
  • BuddhaBuddha
    I'm not a tax expert, but I am a financial advisor. CRA has several grey areas, this being one of them. True, lottery winnings are not taxed, and casino winnings (poker winnings) would fall under this category as well. HOWEVER, if this is your main source of income (or your soul source of income), they will probably come to you and want to tax you, because it would be considered business income. This is what happened to a guy who makes a living with Pro-Line. They made him pay taxes. He tried to appeal, stating it was lottery winnings... but since CRA showed this as his main source of income and that he treats it like a full time job, he had to pay taxes on it as if he was self-employed.

    Now... the "good" thing about this that if they decide to tax you because they consider it business income... then you can also write off some expenses. That means you can deduct a portion of your meals, travel expenses, motels, etc, etc... You can even probably deduct your tournament buy-ins (which will be nice when you don't make the money) because these are expenses you incur in order to produce the so-called "business income." So... yes... they may want to tax you... but if that's the case, there are ways to reduce your taxable income. ;)
  • BuddhaBuddha
    The other thing I should mention is that if you're making large cash deposits in your bank account... your account could be flagged. It depends on the amount and frequency. Banks have an obligation to report any "suspicious transactions"... and these often include cash deposits of $10,000 or more, or frequent large cash deposits. It's reported to the government... apparently in an effort to curb terrorist activities.

    So... don't be surprised if you get questioned when you're making a large cash deposit.
Sign In or Register to comment.
HomeDiscussionsToggle Dark Mode