Paying taxes on winnings from offshore books

[PabloSonLoco]

What are you guys' thoughts about paying taxes on your winnings from profits from offshore books? There are two sides to this I'd say: 1) the offshore books don't give your info to the US Govt. and 2) all income can be traced such as checks, FedEx, Western Unions, etc.

Is there a certain limit that is safe from being audited? Under $10,000? Under $100,000? I would like all of your insights into this topic. Thanks.

[AussieVamp2]

only an issue for Americans, isn't it?

[krackman]

Pablo this issue has been brought up alot in the past and after reading all the good post I am taking some advice and putting my winnings on my tax form this year.If I am right fed-ex and western union is in bed with the gov't so that would all be traceable transactions. One thing I am not real clear of is how they ( The Gov't) will decipher my wins vs losses but will see.

[PabloSonLoco]

Krackman> That will be hard for me to do as well, because I don't have any real record of my losses. Alot of the checks I received aren't true "winnings", at least net-winning wise (revenue minus costs). It sounds like the check via regular mail is the most untraceable method to receive payment.

[Bette Midler]

Pablo,

If you're a post-up player, than you should save your Western Union receipts and credit card statements. At the end of the year, net winnings can ought to be determined by redemptions minus deposits.

[ShiftySheik]

Is a Western Union receipt payable to a person in a foreign country acceptable to the IRS as proof of a gambling loss? Something to think about before claiming net winnings on your tax return.

[JohnnyDeMarco]

I didn't know that you had to pay taxes in Mexico.

[reno]

Is there any country in the world other than the USA that taxes people on gambling winnings?

What countries other than the USA even tax people on investment income? What a rip-off. You already paid taxes on the money when you worked to make it, and now when you invest it, they tax you again.

Maybe you appreciate the way the government spends your taxes. In all honesty, the way the government wastes money on programs like welfare and bussing, I truly believe that I am helping the world more by spending would-be tax dollars on hookers in Asia. It is my personal form of directly providing foreign aid to truly underprivileged people.

Krackman, there are creative ways to bypass taxes on your offshore gambling winnings. In fact, I just bought two books that deal with the subject--"Hide Your Assets and Disappear" and "The Offshore Money Book."

[Bette Midler]

Reno,

I hope Amazon.com has those books in stock. Also, have you considered writing a book on "Philanthropic alternatives to the welfare state"?

[Bob]

Actually, it is a misconception among many outside the U.S. that they don't have to pay tax on gambling winnings....here in Canada the rule is you don't have to pay tax UNLESS you win on a regular basis....seriously.

The case law is quite funny unless, like me, you are caught in the middle of it.

Here, if you show a consistant pattern of winning over a long period of time your winnings can be declared taxable. The law assumes you knew what you were doing and, therefore weren't really gambling but rather engaging in a business activity. However, if you lose your shirt, that is considered gambling and is not deductable.

My lawyer has shown me all kinds of cases on it and many of them are from the U.K. and Australia (we share a common legal system and tradition).

So I think anyone from the Commonwealth who believes the millions they made offshore are free from tax, should look into it a little more.

[krackman]

Thanks Reno I will look into them and one of these Vegas trips maybe I can get some ideas from you in person.

[PabloSonLoco]

Reno,

I believe it's a bunch of crap that the government/IRS wants people to report their winnings. That's why I started this thread. I am just wondering if the earnings are under a certain amount that one can bypass reporting. I fill out the EZ-1040 every year. This represents nothing but a pain in the @ss to have to do more paperwork.

[reno]

Krackman, unfortunately, I am the wrong person to be providing in-depth ideas on this subject. I know just enough to be dangerous. I'm now in the process of learning more, but my hope is to find someone truly astute in this area who can show me the way.

Bette Midler, before I write any books, I want to educate people. According to Carl Everett, an Apostolic Christian who plays for the Boston Red Sox, dinosaurs never existed, and dinosaur bones are "made by man." After my scalping days are over, I plan to go on the lecture circuit and debate the existence of dinosaurs with Mr. Everett. Then, I will take on the Flat Earth Society, a group of people who believe that the Earth is flat. Hell, after listening to my convincing argument, even BW member Skeptic now accepts the fact that the Earth is square.

[sportsbank]

I thought Steven Spielberg created
dinosaurs Poor Carl Everett. A
Christian, but a clueless one.

[JohnnyDeMarco]

I too, think it sucks that you have to report your winnings. But on the other hand you can deduct your losses. How many true winners are there really out there? Less than one half of one percent of the people that bet regularly win. No wonder the government goes after books!