Originally Posted by Smokewood
Except it isn't a gambling or poker site. There is no lose because you buy gold coins with a credit card and then they gift you sweepscash. Try to claim loses on your taxes and you will be audited and fined because there were no loses....
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Have you consulted a USA tax lawyer to clarify the tax responsibility issue? My understanding is that the Global Poker sweepstakes model works the same as the State lottery model (which is also a sweepstakes). For example...
When playing lottery scratch off tickets the tax payer is responsible for paying taxes when winnings (earnings) exceed $600. In order to off-set the winnings the tax payer would itemize (schedule A maybe?) their losses. That is, the tax payer would claim losses for the sum of the total scratch tickets purchased and pay taxes on sum of the total winnings.
To relate this concept to Global Poker. Each game (hand) is a sweepstakes. From each game the win/loss can be derived. Unfortunately, Global Poker has a difficult method to analyze the hand history from which to derive this information - so it won't be easy.
*Disclaimer - I am NOT a tax advisor and not in the tax industry so do NOT take my words for the truth, they are simply my understanding of how the USA tax system works with regard to sweepstakes models such as the lottery**