Quote:
Originally Posted by user12345
I don't understand that tax issue when you're buying action for WSOP or generally some USA livements.
Let's say US citizen sell action for local livements to non-US citizen who transfers via stars.
Why do Us citizen require some tax form?
Why can't he pay taxes for investor share and send post taxes profit to investor (total amount minus taxes he payed himself)?
1) Due to progressive taxes, the more a player earns in a year the higher tax rate he has
2) He can pay taxes for investor share but that is not the correct way to do it so why do it that way?
The tax form required basically notifies the government who earned money from the win. Without filing that form they are going to assume the player won it all and expect the player to pay tax on the entire win.
Regardless of how you payed the player, if he wins a lot of money that win is recorded and submitted to the Govt.