Originally Posted by theplux
I want to know something. The numbers are random obv.
Lets say i made 50k this year with poker. Its my primary income and I do not have any other sort of incomes. So basically I would need to pay taxes. BUT.
Lets say Ive traveled around the world and it costed me 30 000$ during 2008. All those travels were because of my job (poker) so business trip where I expected to win money but didnt. Ive also lost 5000$ in tournaments and 5000$ in staking people. Which are both related with poker.
So I should say Ive won 10 000$ with poker? Since its global income.
in your T1 form you would declare your gross income, and there are lines to declare your expenses. make sure you keep copies of receipts. i'm not sure if you're able to declare hotel and travel 100%, but they're legit expenses, meals can also be declared (50% if they're for business purposes). so buy someone a meal on your trips and declare it. you can claim you were dicussing poker.
tourney entries obv a business expense. staking is a bit tricky. coz you need to prove that you're staking. i think a contract would do the trick and a money trail (write a check to the person).
And something else with the windfall thingy.
Lets say my main income is from the online website X in 2008. Ive made 35 000$ from that website over the period of 12months. But lets say I played for 5days on FTP and won 20 000$ over that period and cashed out right away. So I think criteria F would work here. I didnt expect to win and its not a source where Im usually getting money from. Same thing happens on Pokerstars where I win 50 000$ over 3days and dont do anything there afterwards.
So my income would be 35 000$ on the website X ?
i doubt you can get away with this. unless the site you're depositing to has other games, other than poker, then you can argue you felt like playing blackjack on party poker and got lucky. if it's poker, and you've already acknowledged that you meet the criteria to pay tax on it, then i can't imagine you'd be able to sell this argument to an auditor.