Staking Practices

[myenemy 0]

I recently was involved in a situation where me and a friend played in a large tournament and decided that we would take 10% of each other. We thought it'd be fun and to spread around the risk. We didnt discuss details too much, just a blanket 10%. I ended up winning the tournament, it was a live tourney, and the prize was about 11K. I was informed by the casino that I would get a W-2 (g) and would have to pay tax since its over 10K. I have been unable to find a detailed inforegarding this situation, but it seems obvious to me that I should pay him off from the net profit, not the gross. He does not like that ruling. Does anyone know about this? Are there guidelines somewhere I can refer this guy to?Thanks

[pokerplayer24 0]

Yea i'd pay him off with net profit, only way to do it imo.

[Actuary 3]

so he thinks he should get a tax free prize and essentially have you pay the taxes on his portion, too?pay him after tax 10%

[Zach6668 513]

Your friend is a bum. Net profit.

[mrdannyg 274]

Your friend is a bum. Net profit.

seriously, you win him $1100, and he's complaining because its only $1000 or so?i'm no expert, but unless you're a "professional poker player," the taxes should not be too much. tell him to stop crying and that he owes you several dozen beer.

[myenemy 0]

Thanks all. That is what I am doing. It was just upsetting because this guy is a friend and I dont want t olose that because of this stupid deal. And at the same time I think, whats fair is fair.