A
A9ofHearts
Visionary
Silver Level
When I withdraw money from a poker site can I write off the initial deposits on my taxes?
Not deposits. A deposit isn't considered a loss until you lose it. Now once you lose it, you can deduct the loss but only to offset your winnings. You can't deduct losses in excess of winnings. But you don't have to be a pro to do that -- anybody can do that too.
One of the distinctions with pro vs amateur players is that pros can deduct additional costs as business expenses, i.e. travel and buy-ins to live tournaments.
No, re-read my post. Get deposits out of your mind, nothing about a deposit is deductible.So basically for someone who plays as a hobby I can for example deposit $300 then withdraw $800 and write off the $300 initial deposit and only pay taxes on the $500 profit?
In the US tax code, it states you are allowed to deduct $3,000 per year, even as a carry-over loss from previous years. If you are a casino rat or a casual gambler, would assume you have lost over $3,000 in the year. Keep tract of the days you play and the money you take to play; some type of log.
....that is over and above the win/loss deduction. Meaning if you win $25,000 but loss $26,000 you may still take the additional loss on the 1040 form.
Declarinf yourself a professional is a simple item.