poker and taxes

tauri103 · Oct 30, 2018

The US tax system will allow the Internal Revenue Service (IRS) to emerge as the winner of the wsop 2018 Main Event final since the last six players are American and professional in the game.

Winner of $ 8.8 million, world champion John Cynn will have to drop almost 44% of his winnings. The IRS will puncture more than the net equivalent of the victory! US taxes are expected to garner $ 9.8 million in finalists' earnings and this is just federal taxes. With local taxes, almost 11 of the 28 million distributed to the finalists will disappear!

what is your opinion on this subject? Why do Amercans professional players have to pay more taxes than others?

Queenlimp · Oct 30, 2018

tauri103 said:
The US tax system will allow the Internal Revenue Service (IRS) to emerge as the winner of the WSOP 2018 Main Event final since the last six players are American and professional in the game.

Winner of $ 8.8 million, world champion John Cynn will have to drop almost 44% of his winnings. The IRS will puncture more than the net equivalent of the victory! US taxes are expected to garner $ 9.8 million in finalists' earnings and this is just federal taxes. With local taxes, almost 11 of the 28 million distributed to the finalists will disappear!

what is your opinion on this subject? Why do Amercans professional players have to pay more taxes than others?

Isn't this just standard tax brackets and treated as short-term capital gains for tax purposes?
As a professional, does losses offset your gains?
What I'm curious to know is reporting as it relates to a big online cash out?

bstest · Oct 30, 2018

Not being a tax accountant, nor pretending to be as knowledgeble. Earning are earnings and should be taxed as all other income is taxed. In my opinion our government offers us alot, and it is a priviledge to live in such a great country. Despite the weight of the taxes I have managed to live a life that I am comfortable with. Hope you all have the same. By the way I don't see them paying more taxes than others.

Pokerguy6666 · Oct 30, 2018

This is why I love Canada, gambling winnings are tax-free here.

Iryna Stryzheuskaya · Oct 30, 2018

People are obliged to comply with the laws of the country in which they live. If the laws do not like, then you can move to another country.

chicopaw · Oct 30, 2018

if you paid taxes on your earnings and then played ,the only taxes that should be paid are on the profit after entry of a game and the expenses prior to and afterwards of a game .should be a deduction,everything incurrs costs. You dont go on a holiday to see something for 1 price, there is food, accommodations,fuel to get there and back which also adds to the total cost

benitwapasu · Oct 30, 2018

Iryna Stryzheuskaya said:
People are obliged to comply with the laws of the country in which they live. If the laws do not like, then you can move to another country.

I think if I was John Cynn I would be very tempted to 'get out of Dodge' with my entire 8.8 mill..Make the move fast and let the IRS waste their stamps. Or I suppose they deduct taxes immediately and he only gets a cheque for 5 mill or so--is that how it works?

freestocks · Oct 30, 2018

Taxes are stupid.

chicopaw · Oct 31, 2018

freestocks said:
Taxes are stupid.

just like freestocks do not cost $$
just being funny

Iryna Stryzheuskaya · Oct 31, 2018

In my country (Belarus), I write a tax return once a year and pay 13% of my winnings in poker for the year.

vov4ik · Oct 31, 2018

This is bad for players from America because it is necessary to pay big taxes from the winnings in the tax service, in my country in Ukraine now poker was presented by the official sport and now it is not clear what taxes should be paid and how much!

tauri103 · Oct 31, 2018

Alexander Rubcov said:
Серьезно)Круто.

your post must be written in English.

Herkstwin · Nov 4, 2018

Every player is subject to the tax laws of the country in which they are playing. I would expect professional players have their accountants managing their income and expenses. Poker is their 'work' and they can be expected to cover their expenses.

Poker_Mike · Nov 4, 2018

tauri103 said:
The US tax system will allow the Internal Revenue Service (IRS) to emerge as the winner of the WSOP 2018 Main Event final since the last six players are American and professional in the game.

Winner of $ 8.8 million, world champion John Cynn will have to drop almost 44% of his winnings. The IRS will puncture more than the net equivalent of the victory! US taxes are expected to garner $ 9.8 million in finalists' earnings and this is just federal taxes. With local taxes, almost 11 of the 28 million distributed to the finalists will disappear!

what is your opinion on this subject? Why do Amercans professional players have to pay more taxes than others?

Pretty standard to pay taxes. Roads have to get paved, schools funded, etc.

Canadians and some other jurisdictions don't pay taxes on gambling winnings because the government runs the casinos and lotteries. So, the government encourages gambling because they profit from it. "Come on in and gamble.....you won't pay taxes if you win." lol

If you attended the WSOP in Vegas from other parts of the world then you used infrastructure that was funded by US tax payers.

From my novice understanding of US tax laws - there are legal ways to minimize a professional poker player's tax impact.

Good luck !

Shooter74 · Nov 6, 2018

In Brazil, the highest aliquot is 27.5%

Joonnn1212 · Nov 6, 2018

Death, Taxes, and Ace 2 Suited always getting the job done.

I have been playing at the WSOP for the last 11 and a half years. This rule is really intriguing to me since not only am I a poker player but in the professional field I am just gold old John the accountant. Taxes and poker have always been so cool. Although you are winning money by gambling it's almost like the government is taking a nice rake. And you know what Daniel Negreanu says "More rake is better!". The Asset Management Backing for poker and taxes plays into a very simple equation. I will give you that clue, and that clue only in order to solve this riddle of taxes and poker. Anyways, enough of all that madness. I do get a little happy when the rake goes up and when I win the main event next year with A2 suited after relentlessly winding my opponents down thanks to Upswing Poker I will be John the Poker player! Everyone have a safe weekend

makisaa · Nov 7, 2018

This is a problem for all the countries! I think generally the taxes are too high! With the excistance of "taxe paradises" the situation is not fair for most of the people! Some people are not paying taxes as they should. That's why there are these crazy taxes, which are stoping the economic development.

Anna Nikolaeva · Nov 7, 2018

it all depends on the level of the country, if you live well, it is not a pity to pay taxes

m0t22 · Nov 7, 2018

tauri103 said:
The US tax system will allow the Internal Revenue Service (IRS) to emerge as the winner of the WSOP 2018 Main Event final since the last six players are American and professional in the game.

Winner of $ 8.8 million, world champion John Cynn will have to drop almost 44% of his winnings. The IRS will puncture more than the net equivalent of the victory! US taxes are expected to garner $ 9.8 million in finalists' earnings and this is just federal taxes. With local taxes, almost 11 of the 28 million distributed to the finalists will disappear!

what is your opinion on this subject? Why do Amercans professional players have to pay more taxes than others?

I do not know how the regulation of poker works in the US.

I believe that the tax has to be correlated to the currency and not be higher for some and smaller for other countries.:icon_rr:

sryulaw · Nov 7, 2018

Very high tax rates, more in compensation the US, a very good structure for your citizens, then pay taxes do not see that it is so bad, if you do not want to pay only to change country ..

monstr999999 · Nov 7, 2018

pay taxes...
and sleep well)))
:wavey:

kdawg71 · Nov 7, 2018

As far as I know all that would happen to these final table players in the WSOP main event is that they would end up in the top tax bracket of taxpayers. That being said, they can use all of their loses and meals that they eat and money spent to get to these tournaments and motel costs and other expenses that have to do with gambling as a tax write off. They need to keep all of their receipts though, just to be safe.

poker and taxes

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