Category Archives: Gambling

WSOP and Taxes: 2018 Update

Posted on May 30, 2018 by Russ

The 2018 World Series of Poker (WSOP) begins today here in Las Vegas. There are also several other tournament series that have either begun or will soon begin at the Venetian, Wynn/Encore, Aria, Planet Hollywood, Binion’s, Golden Nugget, and Orleans … Continue reading →

Posted in Gambling | Tagged | 4 Comments

Online Gambling and Offshore Cryptocurrency Exchange Addresses for 2018

Posted on January 24, 2018 by Russ

This list has been superseded by the 2019 list. With the United States v. Hom decision, we must again file an FBAR for foreign online gambling sites. An FBAR (Form 114) is required if your aggregate balance exceeds $10,000 at … Continue reading →

Posted in Cryptocurrencies, FINCEN, Gambling | Tagged | Comments Off on Online Gambling and Offshore Cryptocurrency Exchange Addresses for 2018

GOP Tax Proposal Targets Professional Gamblers’ Losing Years

Posted on November 2, 2017 by Russ

The Joint Committee on Taxation released its new tax proposal, H.R. 1, today. Buried within it is Section 1305: SEC. 1305. LIMITATION ON WAGERING LOSSES. (a) IN GENERAL.—Section 165(d) is amended by adding at the end the following: ‘‘For purposes … Continue reading →

Posted in Gambling, Legislation | Tagged | Comments Off on GOP Tax Proposal Targets Professional Gamblers’ Losing Years

Israel Tax Authority Targets Poker Professionals

Posted on November 1, 2017 by Russ

Some unknown bureaucrat working at the Israel Tax Authority was likely reading something about poker or perhaps watching the World Series of Poker on television when he asked himself, “I wonder if Israeli poker players are paying their income taxes?” … Continue reading →

Posted in Gambling, International | Comments Off on Israel Tax Authority Targets Poker Professionals

Can a Tunnel Bridge Agent be a Professional Gambler, Too?

Posted on October 2, 2017 by Russ

The Tax Court looked at whether someone who worked full time as a Tunnel Bridge Agent could also be a professional gambler. There is a lot in the decision, including some things that I believe the Court gets wrong. The … Continue reading →

Posted in Gambling, Tax Court | Comments Off on Can a Tunnel Bridge Agent be a Professional Gambler, Too?

It’s One 1099 Per Person, Or the Most Stupid and Hilarious Thing I’ve Seen in Some Time

Posted on September 29, 2017 by Russ

One of my clients, Barri Brown (all names in this post are fictitious), was missing a 1099 issued by one of the two large Daily Fantasy Sports (DFS) companies. It didn’t show on her Wage & Income Transcript, so she … Continue reading →

Posted in Gambling, Information Returns | Tagged , | 1 Comment

The 2017 Real Winners at the World Series of Poker (London Calling, Again)

Posted on July 23, 2017 by Russ

The main event of the World Series of Poker has completed: 7,221 ponied up $10,000 to enter. The final nine players began competing on Thursday; last night the winner was crowned. How much of his winnings does he get to … Continue reading →

Posted in Gambling | Comments Off on The 2017 Real Winners at the World Series of Poker (London Calling, Again)

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?

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 §165(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