Quote:
Originally Posted by TheDarkKnight
I’m talking to a potential new CPA that allegedly has experience filing for professional poker players and he’s advising me to track all my tips in cash games so that I can deduct them later.
A session is still the valid criteria, correct? Some suggested a few years ago that a session is one table's results (live of course).....so if you have a table change, your 1st session is done, you are starting a second session. Not really to the point of your question...just asking for my own knowledge.
But...with a session, it's probably been (for you):
Started session with 1000.00 in your pocket (numbers don't matter)
Ended session with 1100.00 in your pocket.
Profit/loss: Your journal date and +$100.00
(I am not using "other" expenses that you are able to deduct)
"Now" it will be:
Started session with $1000.00
Ended session with $1100.00
Paid $35.00 in tips to dealer
So you actual declare on your 1040:
Profit/Loss: date and +$135.00
Expense $35.
So you have increased income. But the INCOME TAX less EXPENSES will still be $100 after taxes (simply put). BUT,,,,,, you are increasing your Social Security and Medicare costs. 15.3%* x 35.00 = $5.355
*Medicare percent changes if you are making hay at the tables $200K+.