Monthly Archives: May 2017

Thank You, Joe Kristan

Posted on May 27, 2017 by Russ

Most mornings I begin my day by reading a few tax blogs. This has helped me learn what’s happening in the tax world. After all, there’s one of me so the more sets of eyes, the better. Joe Kristan had … Continue reading →

Posted in Taxable Talk | Tagged | 1 Comment

Illinois and California Race for the Bottom

Posted on May 27, 2017 by Russ

It appears that Illinois and California are in a race to see which can impose the worst tax policies. The Illinois legislature is debating a “Privilege Tax;” California is debating single-payer health care. Neighboring states to each are likely envisioning … Continue reading →

Posted in California, Illinois | Comments Off on Illinois and California Race for the Bottom

Exchanging One Cryptocurrency for Another Is a Taxable Event

Posted on May 27, 2017 by Russ

Let’s assume I own some Bitcoins and you own some Ethereum; these are two cryptocurrencies. We think they’re each worth $5,000 and we agree to swap them. Do we have a taxable event? The IRS consideres cryptocurrencies to be akin … Continue reading →

Posted in Cryptocurrencies, IRS | Tagged | Comments Off on Exchanging One Cryptocurrency for Another Is a Taxable Event

WSOP and Taxes: 2017 Update

Posted on May 22, 2017 by Russ

The poker world is about to descend on Las Vegas for the World Series of Poker (WSOP) and a score of other tournament series. The tax environment has changed, so I’ve decided to do a thorough update of the tax … Continue reading →

Posted in Gambling | Tagged , | 9 Comments

Do You Need a License to Sell Bitcoins?

Posted on May 15, 2017 by Russ

Let’s say I own some Bitcoins. I want to sell them to a friend. Do I need a license to do that? This question came up after I was informed that a Missouri man pleaded guilty to operating an illegal … Continue reading →

Posted in Cryptocurrencies, FINCEN, Gambling | Tagged | Comments Off on Do You Need a License to Sell Bitcoins?

The TurboTax Defense Fails Again

Posted on May 11, 2017 by Russ

A gentleman who is normally an expert witness in trials used TurboTax to prepare his returns. His returns ere reviewed by the IRS; the IRS claimed he took a few too many deductions. The taxpayer felt otherwise, and the dispute … Continue reading →

Posted in Tax Court | Comments Off on The TurboTax Defense Fails Again

No, The Law Hasn’t Changed: Professional Gamblers Cannot Deduct Gambling Losses in Excess of Wins

Posted on May 7, 2017 by Russ

The Internal Revenue Code (IRC) is law. It was passed by Congress and signed into law by the President. One section of the law is IRC ยง165(d). It reads: (d) Wagering losses Losses from wagering transactions shall be allowed only … Continue reading →

Posted in Gambling | Comments Off on No, The Law Hasn’t Changed: Professional Gamblers Cannot Deduct Gambling Losses in Excess of Wins