Two Plus Two Publishing LLC
Two Plus Two Publishing LLC
 

Go Back   Two Plus Two Poker Forums > >

Notices

Poker Legislation & PPA Discussion hosted by Rich Muny Discussions of various poker-related laws and steps players can take to push for better laws.

Reply
 
Thread Tools Display Modes
Old 12-25-2017, 09:34 PM   #1
Fold_
stranger
 
Join Date: Jun 2006
Posts: 10
Taxes for US online players using bitcoins for transfers

Sorry to start a new thread but I am going to be a first time tax payer.

How does it work?

Eg: deposit 1k to Bovada with bitcoins. Withdraw 10k again with bitcoins. How would taxes be filed in this case?

Is it even allowed to file taxes in this case given online poker is not legal ?

I know I am clueless, would appreciate any advice...
Fold_ is offline   Reply With Quote
Old 12-25-2017, 10:30 PM   #2
Tapirboy
Pooh-Bah
 
Tapirboy's Avatar
 
Join Date: Nov 2004
Location: babytapirphotos on tumblr
Posts: 4,990
Re: Taxes for US online players using bitcoins for transfers

Yes, it is not only allowed but required to file taxes in this situation. Fortunately you don't have to worry too much about the Bitcoin side of things.

In more detail:
1. You bought $1k worth of BTC, and when you deposited it into Bodog, it was worth $1040. You would accrue $40 worth of taxable short-term capital gains.
2. You made $9000 playing poker on Bodog. You've now made $9k (or possibly more) in taxable gambling income, about which see the legislation forum or various publications on gambling income for more details if you need them. This part has nothing to do with BTC and happens in one of the ways gamblers have been paying taxes for decades.
3. You cash that $10040 out of Bodog and into BTC, and when you converted it into USD again you ended up with $10500. You now have another $460 of taxable short-term capital gains. (Or loss if it goes the other direction.)

I am not a tax attorney and this is not legal advice.
Tapirboy is offline   Reply With Quote
Old 12-25-2017, 11:35 PM   #3
Bobo Fett
2+2 Ad Man
 
Bobo Fett's Avatar
 
Join Date: May 2006
Location: Travelling in Europe
Posts: 46,651
Re: Taxes for US online players using bitcoins for transfers

https://forumserver.twoplustwo.com/5...-poker-740589/
Bobo Fett is offline   Reply With Quote
Old 12-26-2017, 12:05 AM   #4
Fold_
stranger
 
Join Date: Jun 2006
Posts: 10
Re: Taxes for US online players using bitcoins for transfers

Thanks I read the thread.

For someone who only plays online, should I still be doing my taxes on the "session by session" way? It just feels so awkward

Last edited by Fold_; 12-26-2017 at 12:12 AM.
Fold_ is offline   Reply With Quote
Old 12-26-2017, 08:52 AM   #5
PokerXanadu
Commander X-2
 
PokerXanadu's Avatar
 
Join Date: Oct 2006
Location: Florida
Posts: 10,427
Re: Taxes for US online players using bitcoins for transfers

Quote:
Originally Posted by Fold_ View Post
Thanks I read the thread.

For someone who only plays online, should I still be doing my taxes on the "session by session" way? It just feels so awkward
There is no official IRS guidance as to how it is to be done, but the "session by session" method is generally thought to be the correct way. The method you use would only be an issue in the case that the IRS examines your return. If the IRS disagrees with the method you use, you may owe interest and penalties on any shortfall in your income taxes paid if you underpaid under the method they require.
PokerXanadu is offline   Reply With Quote
Old 02-14-2018, 02:32 PM   #6
dleather
centurion
 
dleather's Avatar
 
Join Date: Jan 2013
Location: Partyville USA
Posts: 106
Re: Taxes for US online players using bitcoins for transfers

Is this information still accurate in 2018? If not, can someone direct me to literature that is more up to date?
dleather is offline   Reply With Quote
Old 02-15-2018, 05:54 PM   #7
PokerXanadu
Commander X-2
 
PokerXanadu's Avatar
 
Join Date: Oct 2006
Location: Florida
Posts: 10,427
Re: Taxes for US online players using bitcoins for transfers

Quote:
Originally Posted by dleather View Post
Is this information still accurate in 2018? If not, can someone direct me to literature that is more up to date?
I believe it is all still the same. Be sure to read the US Taxes stick - there is important relevant information there. Pay particular attention to FinCen requirements for reporting a foreign bank account - many bitcoin wallets fit that definition.
PokerXanadu is offline   Reply With Quote

Reply
      

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Forum Jump


All times are GMT -4. The time now is 08:40 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright ę 2008-2017, Two Plus Two Interactive
 
 
Poker Players - Streaming Live Online