--- In vpFREE@yahoogroups.com, "bornloser1537" <bornloser1537@...>
wrote:
Are you saying that the IRS will never see the $16,000,000, under
the present regulations?
No. Poker players are like all other enterprising americans. They
have to pay their taxes.
Or, are you saying the $16,000,000 is really only a "paper profit"
since some of it would have
been counterbalanced with losses. I guess if this latter point is
the case, the money that
would have been withheld would ultimately have been returned to the
tax filer and so is not
lost to the poker economy (in the long run).
I'm saying that tournament pool players, bowlers, bullriders, bass
fishers, golfers are doing the same thing as poker players. They are
posting a buy-in/entry fee and gambling that they can win money. But
the new rule won't apply to them. When they cash in an event all of
that money is available for future buy-ins. The rule applies only to
poker players.
It seems to me that if someone has winnings, not counterbalanced by
losses, there should be
the proper taxes paid, either through withholding or with a
standard tax filing. This really
has nothing to do wiith the "poker economy", or am I missing
something?
..... bl
Joe Pokerplayer from Podunk, Kansas has a $20,000 bankroll. He heads
on down to the WSOP for some action, baby. For his few week stay in
Vegas he budgets $2,000 for travel, meals and lodging. Then buys his
way into $l8,000 worth of events. He plays several tournaments and
cashes once for $8,000 and once for $12,000. So now his bankroll is
back up to, er, I mean down to $15,000 since the IRS nabbed $5,000 of
his winnings.
So after the WSOP he heads on down to LA to the Bicycle CLub for
their tournaments. He spends another $2,000 on travel, meals and
lodging. Then fires the other $13,000 at the tournaments. He plays
in several events and cashes once for $6,000 amd once for $8,000. So
now his bankroll is up to, I mean down to $10,500.
So now Joe heads on down to....Podunk, Kansas. He sees the
handwriting on the wall. The cost of travel, meals and lodging can
really eat into a bankroll. He actually showed a $3,000 profit in
the tournaments but the IRS lifted $8,500 from him in the process.
He thinks "Man, if they hadn't done that I could keep on playing for
awhile to see if I could make that big score. If not for them my
bankroll would be at $19,000."
No, Joe is just going to have to wait nine months until tax time to
get back his interest free loans to the IRS. Minus the $840 he owes
on the $3,000 win, of course.