The government and taxing your live money

I am not a tax expert. I took a few college accounting courses, and did taxes one year for my uncle's accounting firm. I am thinking of "going pro" as a poker player in the the next year or so, so I have looked into this whole deal quite a bit. I have communicated with Russ Fox.

Ok, now that you know my credentials, or lack of same, let's start with the basics:

In the US, all income is taxable, If you sell cocaine out of your house or make any other illegal income, it's taxable income.* If you win money in a casino, whether it's from slots or poker, it's taxable. If you make $300 doing odd jobs as a second income, it's taxable. It all gets added together on Form 1040.

Now, as far as going pro:

First, take a realistic look at the down sides: Widely variable income, no company insurance or retirement plan, etc. The best times to make money are nights and weekends, which is going to mess up your social life. If you change you mind and go back to a "real" full-time job after three years, what are you going to put on your resume, and how will that sound in a job intervew?--"Well, I took three years off to play poker full-time, and it didn't work out".

If you still want to do this:

To go pro, there are IRS standards that you have to meet. Basically, it has to really be your full-time job, that is, your business. The IRS will look at whether poker is your primary income, and whether you put in the same hours as you would with "normal" a full-time job.

I keep very good records (spreadsheets) including logging my poker time, by the quarter-hour. I break it down as playing, studying, and administrative/recordkeeping. Very few people actually play 40 hours a week, but if you keep track of all your time this way, it will make your case.

As far as deducting expenses, it's not that different than expenses for any other home business. (Massages wouldn't fly for poker or any other home business). Just keep in mind that is has to really be a business expense, not a new computer that the entire family uses when you're not playing poker.

Some obvious poker expenses could include:

Gas or mileage to drive to a casino (it's that the primary reason for your trip)
Poker books and poker magazine subscriptions
Poker software such as PokerTracker or Wilson Turbo
Any computer hardware or software that you use only for poker, such as a second monitor for multitabling
Any teaching tools, such as a subscription to a poker coaching site.
Office chair, office supplies, etc.

NOTE: The deduction for a home office itself would apply only if the space is actually set aside as a business office. It can't be a corner of a room where the family also watches TV when you're not playing poker.

I hope this helps,

Thanks to www.blackjake.net www.casinoebooks.com> i am a player that love the game and help gamblers.

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