Quote:
Originally Posted by biloxi22
Let's say you file as a professional .Can the blinds in a cash game that you pay in winning session be an expense? In tournaments the entry fee is an expense, and in cash games you can't play if you don't pay the blinds.
Of course if you are in a losing session they are already deducted. Thoughts?
Whatever you paid in blinds, rake, etc. is already incorporated into your net win or loss for the session when you count up your money at the end of the session. If you also took the blinds as a separate expense, you would be deducting them twice.
Similarly, for a tournament you don't count the entry fee as an expense. If you don't cash in the tournament, you count your total buy-in including the tournament fee as a gambling loss (losing session). If you do cash in the tournament, your report your net win - your payout minus your total buy-in including the entry fee - as gambling winnings (winning session).
The poker room is supposed to give you an IRS Form W-2G for any net win over $5K. Make sure it shows this net amount as your winning amount, not the total payout amount. If you re-enter, the net amount should reflect that as well.