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Poker Stars Wsop Seats


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Sorry if this has already been discussed. I did a search but there was too many noise results to be able to find what I was looking for easily. Anyway, I was hoping that someone that has won a WSOP main event seat on Poker Stars can confirm that they pay out in cash (not T$ or W$).

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hmm..let me rephrase. Cash as opposed to buying you in or giving you some sort of WSOP main event voucher.
This year no one can buy you in accept you! Yes it is cash!
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Ya know what this means, right?It's TAXABLE INCOME. :club: Which means...approximately 35% of that 10k is going to have to be paid to Uncle Sam...regardless of the recipient's success in the WSOP.UPDATE: If you win more than $10,000 at WSOP, no way you can deduct any of the entry fee. If you just take the $10,000 in cash (or $11,000) and do not enter the ME, it is 100% taxable income, period. (Not sure if you're allowed to *not* enter the ME with this "cash"?)

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This year no one can buy you in accept you! Yes it is cash!
There is a clause somewhere when I signed up for a few events taht said if you (blah blah something with Harrahs) then they can sign you up.
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Ya know what this means, right?It's TAXABLE INCOME. :club: Which means...approximately 35% of that 10k is going to have to be paid to Uncle Sam...regardless of the recipient's success in the WSOP.
If you don't cash, you can deduct your 10g loss on Schedule A, thereby mitigating your tax liability considerably.
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Ya know what this means, right?It's TAXABLE INCOME. :club: Which means...approximately 35% of that 10k is going to have to be paid to Uncle Sam...regardless of the recipient's success in the WSOP.
This is a totally false statement. If you pay 10k to enter the main event, that 10k is considered a gambling loss and offsets your win. The tax form asks you to report your winnings and your losses.You pay $216 to win 12k. Current winnings $12k; current loss $216You pay 10k to enter the ME Current winnings $12k; current loss $10,216.Amount you owe tax on: $1,784
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Ya know what this means, right?It's TAXABLE INCOME. :club: Which means...approximately 35% of that 10k is going to have to be paid to Uncle Sam...regardless of the recipient's success in the WSOP.
sorry couldn't hear you...thinking too much about your av
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This is a totally false statement. If you pay 10k to enter the main event, that 10k is considered a gambling loss and offsets your win. The tax form asks you to report your winnings and your losses.You pay $216 to win 12k. Current winnings $12k; current loss $216You pay 10k to enter the ME Current winnings $12k; current loss $10,216.Amount you owe tax on: $1,784
My statement was totally correct. First, you are confusing the entry fee into ME with the possibility of losing the equivalent of the ME entry fee. When you paid $216 to win $12,000, you do NOT have a current loss of 216 or anything else--there is NO current loss. Instead, you have current winnings of 11,784. This can make a big difference--see below (Example A)If you then pay 10,000 to enter the ME, we don't know where we are with your tax liability until you bust out. If you bust out with no winnings, then you have incurred a 10,000 "loss" that may be deductible under certain circumstances, but only up to the amount of your winnings, which at this point exceeds your losses, so yes you end up with a net of 1,784--by coincidence, the same amount you arrived at. (Example B let's call this one)My point is that you cannot "net" your winnings and losses. For example, if example A occured in 2006, then you have net taxable winnings of 11,784 for that tax year. Period. Then if example Boccurs in 2007, you start with a clean slate. But since you raised the point ...The fact of the matter is, ALL WINNINGS MUST BE REPORTED--You cannot "net" your winnings and losses :club: In the event you have losses, you MAY be able to offset at least a portion of your winnings. But rest assured, not all gambling "losses" are deductible, e.g. just because you don't cash in WSOP doesn't necessarily mean you get a $10,000 deduction. Yes, gambling losses are deductible on Schedule A, assuming you itemize in the first place,* but you cannot deduct gambling losses that are more than your winnings (for the year). So if you had a total of $15,000 in entry fees for the year, but only "won" $5,000 for the year, then $5,000 is the MAXIMUM DEDUCTION allowable for all "losses". Likewise, if you paid $15,000 in entry fees but won nothing for the year, then you get a big fat zero deduction. In other words, you can only use your losses to offset your winnings. *If you don't itemize, you get ZERO gambling loss deductions.Here's a good little primer for those of you who may be playing fast 'n loose with the IRS:http://www.gambling-law-us.com/Articles-No...ing-Session.htm
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I like the P5s article:http://www.pocketfives.com/DD6E4B33-181C-4...3BE6A8AF8C.aspx-If I win a satellite for a tournament entry, do I have to declare it to the IRS? How should I do that if I don't get the cash, but only get an entry ticket? What if the package includes the entry fee, transportation and spending money - are these treated differently? Are the rules the same for all satellites, or does the size of the prize matter.Ok, this one will sound unfair but if you think about it, it will make sense.Let’s say I pay $30 and after all is said and done, I win a seat to the WSOP valued at $10,000. If I play the WSOP and do not finish in the money, I basically won $10,000 and then lost $10,000 and am at a total loss of $30. The cost of the entry is the $10,000 that you won. When you receive the transportation and spending money, unfortunately this is also considered income. You can offset this (if you are a pro) with the ACTUAL expenses that you incurred. Think about it this way. If they give you spending money of $500 and you go and buy clothes, this is income to you and not used toward poker. If you took the $500 and used it for a hotel room during the tournament, then you can offset (if you are a pro) this against the money you received. The rules are the same no matter what.Income from any gambling, whether Poker Stars, Party Poker, etc., has to be claimed as income on your tax return.Mark

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Ya know what this means, right?It's TAXABLE INCOME. :club: Which means...approximately 35% of that 10k is going to have to be paid to Uncle Sam...regardless of the recipient's success in the WSOP.UPDATE: If you win more than $10,000 at WSOP, no way you can deduct any of the entry fee. If you just take the $10,000 in cash (or $11,000) and do not enter the ME, it is 100% taxable income, period. (Not sure if you're allowed to *not* enter the ME with this "cash"?)
Sure you can. I'm confused by this and your most recent post, they seem contradictory. These are all discrete events.You play a $100 satellite, you have $100 worth of lossesYou win $10K in a satellite, you have $10K worth of winnings.You spend $10K on a tournament, you have $10K worth of losses, so $10,100 total losses now.You cash for $25K, you have another $25K worth of winnings, so $35K total winnings now.Tax time, you tell govt you have $35K worth of winnings, and $10,100 losses, and you owe taxes on the difference.One important piece to this is that you MUST be able to itemize deductions to take your losses. So this is where many smaller/part time poker players get hosed. If you can't itemize, then you can't deduct your losses.Mark
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After I told my accountant that I had won my ME seat on Bodog and how to claim it or whatever, he laughed.Not sure how he ultimately handled that one..... I just sign and send in the check. We only owed $800 this year. State gave us back $789. LOL!Hit that one pretty good.... :club:

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Sure you can. I'm confused by this and your most recent post, they seem contradictory. These are all discrete events.You play a $100 satellite, you have $100 worth of lossesYou win $10K in a satellite, you have $10K worth of winnings.You spend $10K on a tournament, you have $10K worth of losses, so $10,100 total losses now.You cash for $25K, you have another $25K worth of winnings, so $35K total winnings now.Tax time, you tell govt you have $35K worth of winnings, and $10,100 losses, and you owe taxes on the difference.One important piece to this is that you MUST be able to itemize deductions to take your losses. So this is where many smaller/part time poker players get hosed. If you can't itemize, then you can't deduct your losses.Mark
Mark.I think you have an excellent handle on it all.Not sure if you were confused by my update. What I meant is that if you pay a $10,000 entry fee, that is deductible only if you lose $10,000, or stated another way, if you don't win more than you pay to enter. So...if you pay $10,000 entry fee and finish "in the money" for $40,000, then you have total taxable income of $50,000 (assuming the $10,000 was a "prize" from winning another tournament) with no deductions (unless, as you note, you happen to be pro, in which case certain "business expenses" may be deductible, but not the entry fee, which is only considered a loss, if you have a loss). Of course, if you keep playing poker the rest of the year and magically start losing all of your winnings from WSOP, the situation can in fact change! LOLStupid tax laws.Why didn't we just elect Forbes a few years ago? :club:
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My statement was totally correct. First, you are confusing the entry fee into ME with the possibility of losing the equivalent of the ME entry fee. When you paid $216 to win $12,000, you do NOT have a current loss of 216 or anything else--there is NO current loss. Instead, you have current winnings of 11,784. This can make a big difference--see below (Example A)
This is totally wrong. Mark is right. You have contradicted yourself.What you have done is precisely net out your losses by saying you only won $11,784In any scenario you have current winnings of $12k. Just as you said you have to report ALL winnings. Technically what you have won is $12k. In my experience when you win a live tournament they don't write out on the form that you won X dollars minus Entry Fee. They write out a form that says you won X dollars. My example includes not winning any money in the main event.And the $10k is deductible regardless of how you finish (up to the point where it does not exceed your income from gambling).
So...if you pay $10,000 entry fee and finish "in the money" for $40,000, then you have total taxable income of $50,000 (assuming the $10,000 was a "prize" from winning another tournament) with no deductions (unless, as you note, you happen to be pro, in which case certain "business expenses" may be deductible, but not the entry fee, which is only considered a loss, if you have a loss).
This is wrong. You are totally wrong. That is like saying I sat down at a cash game with $10,000 and left with $40,000. Therefore I won $40,000. No you won $30,000. The entry fee is just like sitting down at a table with $10k. If you happen to get into the money that entry fee did not mysteriously evaporate when you cash out for $40k.So, when you report to the IRS you report you won $40k and you lost $10k. This way you are not "netting out" anything. If you don't report the full $40k you are in trouble. Your seat card acts as a receipt for the $10k as a gambling loss. The entry fee is considered a loss because you did not win $40k, you won $30kAgain you won a $12k seat for $216. Winnings = $12k. Deductions = $216Your total amount won is $40k on a buy in of $10k. Winnings now = $52k. Deductions now = $10,216.You can disagree with me all you want, but your depiction of how to report it is dead wrong. If you report $50k in winnings and no deductions you are giving the government money they don't deserve. If you don't trust me, ask a accountant. (I assume you don't have one because if you did, he or she would set you straight.)EDIT: I originally put in $42k for winnings, but reread my post and realized I erred and it is actually $52k
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This is totally wrong. Mark is right. You have contradicted yourself.What you have done is precisely net out your losses by saying you only won $11,784In any scenario you have current winnings of $12k. Just as you said you have to report ALL winnings. Technically what you have won is $12k. In my experience when you win a live tournament they don't write out on the form that you won X dollars minus Entry Fee. They write out a form that says you won X dollars. My example includes not winning any money in the main event.And the $10k is deductible regardless of how you finish (up to the point where it does not exceed your income from gambling). This is wrong. You are totally wrong. That is like saying I sat down at a cash game with $10,000 and left with $40,000. Therefore I won $40,000. No you won $30,000. The entry fee is just like sitting down at a table with $10k. If you happen to get into the money that entry fee did not mysteriously evaporate when you cash out for $40k.So, when you report to the IRS you report you won $40k and you lost $10k. This way you are not "netting out" anything. If you don't report the full $40k you are in trouble. Your seat card acts as a receipt for the $10k as a gambling loss. The entry fee is considered a loss because you did not win $40k, you won $30kAgain you won a $12k seat for $216. Winnings = $12k. Deductions = $216Your total amount won is $40k on a buy in of $10k. Winnings now = $52k. Deductions now = $10,216.You can disagree with me all you want, but your depiction of how to report it is dead wrong. If you report $50k in winnings and no deductions you are giving the government money they don't deserve. If you don't trust me, ask a accountant. (I assume you don't have one because if you did, he or she would set you straight.)EDIT: I originally put in $42k for winnings, but reread my post and realized I erred and it is actually $52k
Dude. We're not on the same page here or something. I was presuming that the 10G was winnings from another tournament. If you take that 10 G and enter the ME and "win" $40,000, then your net winnings are $50k. That's pretty simple. But go ahead--file your taxes your own way.
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