Quote:
Originally Posted by Rupert
Question RE: Taxes
If I stake someone who is American and he wins some live tourney in Vegas (does it matter where it is within USA?) will the taxes be paid immediately? Obviously it drastically affects the variance/winrate so would be a decision breaker for me
If i'm with him (or a UK friend or something) at the time of cash out can I claim the cash out then send him online money later or something?
State taxes are typically deducted at time of win: I.e 5% Louisiana state tax for my WSOPC cash in New Orleans. I'm not sure which other states have a similar tax.
Fed taxes are typically paid later when the American files his US tax return. As long as the American provides his SSN to the casino they will give him a W2G and they do not withhold federal tax. If he cannot or will not provide this info (i.e. a foreign player) then the casino withholds 28% for federal taxes.
You can't "claim" the horse's winnings (unless you sue like Jamie Gold's backers and get the court to order the casino to fold the funds). There is nothing wrong with the horse handing the money over to you and you paying the horse back his share, but all this will have to documented and explained by the horse when he files his tax return.