Para-Mutual Investing & the I.R.S. & Security

[tfm]

Originally Posted by VoodooFan

G@#%&*mn, too much cloak and dagger just to keep what honestly earn.

Starting to think the KGB and IRS differences are only the choice of 3 letters.

Everything so expensive, I can't even find the (cents) symbol on my keyboard. Is it on yours?

VoodooFan

And this to a very basic difference between me and you; and, the assumption is that we're both able to pull out $100k a year betting.

You have no problem giving back $35-$40k of it to Uncle Sam cause you've been 'properly' socialized.

I, on the other hand, don't enjoy getting BENT OVER. To each his own.

Did I hit a nerve?

[VoodooFan]

Originally Posted by tfm

And this to a very basic difference between me and you; and, the assumption is that we're both able to pull out $100k a year betting.

You have no problem giving back $35-$40k of it to Uncle Sam cause you've been 'properly' socialized.

I, on the other hand, don't enjoy getting BENT OVER. To each his own.

Did I hit a nerve?

Dude, I am TOTALLY lost as to what this statement has anything to do with what you quoted my post on.

There is no hidden agenda to smack anyone here, (except the IRS),so only you know what this means and why you wrote, cause I'm clueless, really I am.

VoodooFan

[alydar_ David]

The Gambler's Guide to Taxes by Walter L. Lewis, CPA, contains excellent advice.

Most everyone knows you have to fill out a W-2G if you hit a big exotic (which may or may not have taxes taken out immediately).

If a big hit is to be split you have to fill out Form 5754.

Many people are only vaguely aware of the following:

• ALL winnings are supposed to be reported to the IRS
• Having someone sign for your large exotic hit is fraud. It might be wise to not scream at the top of your lungs that you just hit and ask the crowd who wants to sign for it.
• The IRS does not have to accept any of your reported losses. One word -- "Disallowed" -- is enough to crush you.
• The IRS is not fond of gambling losses. Your betting records better be meticulous and detailed. Collecting losing tickets of others is an exercise in futility.
• In general, you don't want to offset more than 80% of your winnings as loses.

Tax laws change constantly and for peace of mind you really need to consult a CPA or tax attorney.

[VoodooFan]

Originally Posted by alydar_David

The Gambler's Guide to Taxes by Walter L. Lewis, CPA, contains excellent advice.

Tax laws change constantly and for peace of mind you really need to consult a CPA or tax attorney.

Nice heads up on the info.

[froggy]

The government can get all of the information of your activity patterns.
The casinos will willingly work with the government to collect information about you if they are told that you are a suspect in some alleged illegal activity.
If you wager more than $2500 a day in a race book you must consider yourself a almost a suspect.
I recently asked one book manager and he said "we wouldn't do that".
I then asked an ex book manager and he said absolutely.
At $3000 a day they will automatically give your picture, name and activity pattern to the government because you are now a suspect in some sort of illegal activity.
I would suggest that the stateside ADW's will do the same if they want to stay in business.
One time I put $5000 into a savings account and years later it was brought up by the IRS.
They wanted me to prove that it was not drug money.

Long time Nevada residents will remember Gerald Swanson who was at one time the head of the IRS for this area.
He made an agreement with the tip earners if they came clean and started to report their tips the IRS wouldn't go after them for past indiscretions.
After about two years after most had come into line the IRS fired him and said that their signed agreements were no longer valid and they then started to go after everybody that signed up.

Froggy's advice "be very careful".

[Tim Y]

North of the border:NO TAX on any winnings no matter how large.