Poker and Taxes » General Discussion

Hi,

I know that everyone's situation is different but I want to ask these questions and maybe get some of them answered.

Last year I went to Las Vegas for WSOP and played bunch of tournaments, I won a few thousand of dollars. When I was doing my taxes I brought W2G to my accountant as well as bunch of tournament receipts and hotel/airfare expenses.

He explained to me the IRS considers these earning "an entertainment" and therefore I cannot itemize against this income. So I had to pay taxes on full winning amount even though I spent a lot of money on other tournaments.  

Later I spoke with Andy Bloch about this issue while I was sitting next to him for 4 hours and he told me that I would need to open corporation which would have "poker/gambling" as main purpose and then I could deduct expenses from my winnings and give myself only profit at the end of the year.

I guess I'm not sure how that is done. Wouldn't I get W2G in my name anyway?

If someone already has done something like that I'd like to understand how it is done.  I'm sure Phil should know everything to do with taxes as a big winner in both online and offline.

Last but not least. I'm writing this and knocking on wood. Thanks to BFP videos and forums I was able to turn around and start booking profits online. As US citizen how do I take the money off the sites and do I need to report anything to the IRS (if the funds deposited directly into my checking account).

Thank you in advance for your good advice.

Best,

Ilya

 Niman,

Thank you for your advice.  What a difference a day makes.

I guess I wasn't knocking on wood hard enough. Damn, last night was terrible but I'm learning to handle downswings.

Best,

Ilya