Quote:
Originally Posted by kwansolo
i just want the same capability as investors and corporations who can do the same thing. i don't even know what you were trying to say in this response.
if we accept that:
(we have to pay tax on winnings)
---this necessarily implies--->
(some arbitrary truncation of time in which we calculate taxible winnings)
This arbitrary truncation of time, in an extreme case, could be considered per hand. This would be like taking 20% rake per hand for tax purposes. The problems with this are obvious, and stem from the fact that we have losing hands.
The arbitrary truncation of time could be by "session." There are clear problems with this since a "session" is undefined. What if i get up to go get dinner and leave my chips at the table? When i come back am i in a new session or the same one? What if i pick my chips up and go have dinner, then come back after and buy in for the same amount? Does the answer to the same/different session question change?
We could truncate time as monthly or quarterly. Im sure you would want to carry forward losses in this case because losing months or quarters are relitively common, and I'd agree with you in this case... But we cant carry forward losses ad infinitum and have the system make sense. To allow that would basically be allowing a player to just pay tax on his lifetime winnings on his death bed.
A year truncation with no carrying forward of losses is appropreate, because winning professionals shouldnt have losing years. Any argument against this is an argument against taxing gambling winnings at all, which is a wet dream, but has a ton of problems.