Alright, I realize this is a fairly old thread but hopefully someone who still looks here can help me out.

Basically, I'm a full time student and play 100/200nl. I cash out about 3-5k per month and don't currently have any other jobs. Should I be declaring? What are my chances of some serious repercussions if I don't declare? Should I be getting a part time job?

I'm really not sure what my best play here is and after reading about ~30 pages in this thread it isn't really any clearer to me.

How long have you played is the critical data that you omitted.

That being said legally you likely should be -- if not now then when you have a two to three year pattern of winning like this.

Realistically odds are nothing will happen if you don't. Eventually CRA might be more aggressive but unless you do something to bring attention to yourself no one will likely bother you.

Getting a PT job will do nothing unless you plan to make at least 6-10k a month working.

I have a few questions if you guys could help me out. Ive read the thread and don't remember these ones being answered.

If my office is in my bed room and I rent a room how much if any of my rent is tax deductible?

For going to the WSOP last summer but not getting any food receipts can I file as with some sort of per diem that would be deductible?

Do I count roulette, blackjack etc winnings and losses on my income if I'm filing as a professional poker player?

If you have space that is 100% dedicated to earning income, then you can deduct the % that space is of your total space for your rent and utilities.
Most people do not dedicate space however, they only share it with other purposes.
CRA is strict about this.

Per diems aren't usually acceptable. If you intend to deduct as business expenses then you are on shaky ground without receipts (however claiming
$30 a day is likely safe)

You would only claim income from other betting or be able to deduct losses) if you are a professional player of those games.
Recreational gambling is not taxable and you'd have to look at eacha ctivity separately.

I've been winning like this for the past 4 months or so...playing for the past 2 years not really making much before this. I really don't see this continuing for two or three more years.

This is last minute but after reading 30-40 pages of this and other threads I'm still not sure what my best course of action is.

Situation: I won a bunch of money mostly few years back, haven't played much in the last couple years, been coasting basically on the winnings. Previous years I declared income on whatever money I withdrew into my bank account. However I declared the winnings as foreign income. My brother got a phone call (he played some poker before) from CRA and was asked some questions and he said he made the money doin construction work in California, so they just said 'oh then you have to declare it as foreign income'. So I have just been declaring it as that as it seems no phone calls came after that.

Most all the money has come from moneybookers into my bank account.

Lets hypothetically say I withdrew over 50k this past year and most likely would have to pay around 10k taxes on it. My dwindling roll is maybe 11-14k, so basically it would put me into more debt which I already have a lot of. (massive CC debt, some very bad investments)

I have heard that if you withdraw more then 10k it gets flagged. I've never withdrew more then that, however in one month I needed to get money out and made 4 withdrawals all in b/w the 5-8k range each which may look fishy but I don't know.

So my play is either to declare the amount I took out of my bank acct and hope I start running well in poker as I've started to really grind and am hopeful I can pay off my debts. Or declare a small amount of money that basically won't have any tax implications. I'm thinking it would still be in my best interest to declare as foreign income however.

Can I get any feedback or thoughts/suggestions on this, I'm really in a quandary over this one. Help is greatly appreciated.

You need professional help.
Legal and tax accounting.
You've likely made many mistakes.
If anything was taxable it certainly was the original winnings...NOT THE WITHDRAWALS...EVER.

You may never have owed taxes on the winnings in the first place.

I don't get this: Your brother gets a PHONE CALL(?) and not only gives an answer OVER THE PHONE but LIES???
Unbelievable. Really. I'm tilted.

Attn: Everyone

You answer the phone and a very sweet voice offers to upgrade your security system you do not say "Oh I don't have one".
You say "I have one and it's awesome, thanks".

That's when you lie.

I'm still tilted.

Well didn't mean to tilt you but that may have saved him an audit. And he actually said it on the advice of a Chartered Accountant.

Is there any penalties or anything for filing late? Maybe I can hope I run well then just pay it off if so.

The lie is actually a lot worse then the truth which is the worst part.

why's it worst? I am still declaring it as foreign income - should I not do this?

.

What triggered them to call your brother? He must have declared that money to somebody or triggered some kind of investigation because I don't think revenue canada has the right to just go sniffing around your bank accounts behind your back, or am I wrong on that?

Wasn't there a post in this thread where someone got a phone call from CRA asking about their declared "other income".

That person said it was gambling income(uh..the truth) and was told by the CRA agent they didn't owe taxes on that and were reimbursed what they had paid.

I'm sure I read it somewhere here.

I think one of the reasons I declared some winnings before was also because to get a mortgage w/o paystubs you need at least 3 years of taxable income for the banks to even think about giving you a mortgage.

Rainbow warrior is doing a pretty job of making me not want to declare much in the way of income though, say just enough so I pay very little or no taxes.

good work

Yeah I think it was maybe cause it was put under 'other income'

Does anyone know that IF they do audit you, the only real thing I can see them looking at is the amount of money I'm transferring into my bank account as payment as the amount in my poker account will always keep shifting.

Will offshore poker sites allow CRA to look at your poker transactions and money you have on this site - anyone know if this has happened?

I remember before using neteller and their debit card to take a lot of money offline - can they trace that back if an audit happens?

I ask the last one cause then it would be pointless of me to declare the exact amount I put into my bank account cause that's only for protection vs audits + if I want to get a mortgage for a house. So if an audit has possibility of doing much more then that, then I might as well declare the desirable amount to satisfy needs to get a possible future mortgage. Am I crazy?

It's like you're fabricating/manipulating declared income and paying tax on it (omg-ouch) just to qualify for a future mortgage.
I haven't applied for a mortgage in a long time but i remember having to get a proof of earnings letter from my employer.
You're counting on tax returns with random "other income" amounts to do the trick.

You now need serious legal, tax accounting AND mortgage broker advice.

hahaha sounds like im F'n myself pretty good here, awesome.

Thats why I'm on this thread tho, to get legal advice. (jesus..)

I have it set at foreign income not other - And I have family member that is a CA and another family member who is a mortgage broker who I've talked too.

The CA seemed to think the amount I took offline into the bank acct should be fine but wasn't sure about how offshore sites would give detailed transactions - the main issue being neteller debit use from many years prior.

The mortgage broker said they will look at your last 3 years of taxable income, and it being 'foreign' income shouldn't be a problem with getting the mortgage.

Unfortunately no legal advice which seems to be pretty greyish anyways.

This is all getting pointless.
You are failing to grasp the seriousness of your random acts of creating what you think is taxable income by making "deposits" into your bank account.
This is so off base and irrelevant to actual taxable income.
Just because it's the amount YOU want to declare is downright ludicrous.

If your going to lie then lie about earning profit from poker, why would you make something up to pay taxes a different way. Seriously stupid man. If you ever get audited and they decide to tax your winnings do you think the cra will deduct your 'foreign Construction income'? No your going to have to Pay the whole nine yards. All your doing is lowering the chances of being audited.

Edit: I see you didn't lie but your brother did so nm your fine, your bro otoh...

Family members? sigh...
Are you declaring Foreign Employment Income or Foreign Business Income?
The way I read it they're both a stretch.

You obviously have doubts.

Coming to a public internet forum looking for help is proof of that.

I am obv. far from qualified.
No sign of any of the qualified ones itt yet.(calling Toronto CFE)

Imo you MUST get another opinion (tax attorney?) before you take one more step.
This is serious stuff.

I posted here cause I'd hope some of the tax attorneys on this forum would know a lot more then a random tax attorney. It was employment income I'd guess, although I'm not even sure I stated that.

I'm just saying if we are all f'd if we get audited, I might as well either a) declare very small amount so I don't pay tax on it or b) declare something which will possibly allow me to get a mortgage in the future if I want to get a house.

I actually took out more money then I made this year. And I've got enough debt where I'd rather get free advice here then go pay a tax attorney $300+ (oh man..) And I'll have to file by tomorrow, awesome...

You're basically just making things up as you go with CRA as far as I can tell, so I don't know what help anyone's going to be able to provide you with. You've completely set yourself up now so that if you're ever caught in your game I find it hard to imagine you could plead ignorance.

Are you planning to buy a house in the immediate future? If not, I wouldn't worry about that...they usually only need to see your last couple returns AFAIK. Making up numbers for CRA just so you can get a mortgage seems like a bad idea.