What is considered "session" Taxes

I was wondering if this example can be considered a session. I play cash games everyday (almost) after work.. from like 7pm till 9pm sometimes a bit longer. I know the law does not really specify what a session is but i was wondering if that can be considered a session? The reason i`m asking is because it would be better for tax purposes i would rather ADD TOTALS from session winnings and then subtract session losses then consider every each hand i played.

ex. I play 500 hands.. within this session at the end total winnings would be $50 ( although if i wouldn't have counted it as a session but rather per hands it could come out to something like winnings $400 losses $350) do you see how much of a difference in taxes it is?

So Can this 2 hour/3 hour that i spend each day after work could be considered a session and just net results and claim it as a session?

I don't think the IRS cares what your session length was, how many hands you have played, but rather how much you have won or lost.

My session always starts on January 1st and ends on December 31st.

hes right its total wins and loses each session doest matter

smd173 said:

My session always starts on January 1st and ends on December 31st.

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lol

No, you do have to keep track of your sessions. And as far as I've been able to figure, a session would be the amount of time you played at a given limit and a given type of game at one sitting. For example, if you played $10NL for two hours, that would be a session. If you came back 3 hours later, that would be another session. If you played Razz and Hold 'em at the same time, that would be two different sessions. If you played $10NL and $25NL at the same time, I think that would be two separate sessions.

Tournaments are easy, because each one is a session.

All of this applies whether you are playing one game at a time, or multi-tabling. The IRS requires you to keep a log of all your sessions, as you know. Obviously, each hand isn't a session, but a session can't be a year long, either.

Basically, if you stick with what I mentioned above, you'll probably be safe. I'm not a tax attorney, so don't hold me to all this, but I've done quite a bit of research into it and I think this is right. I also used to work for the IRS, getting cases ready for court. Judges are fairly reasonable, so if you have a method behind your madness and can explain it well, even if the IRS doesn't agree with you, you have a chance to convince the judge if it comes down to that.

TheseNutsWin said:

So Can this 2 hour/3 hour that i spend each day after work could be considered a session and just net results and claim it as a session?

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Yes, but you can't net winning sessions against losing sessions. Winnings sessions go into your income, while losing sessions are deducted (up to winnings) on your itemized deductions. If you don't itemize, you can't claim any losses. Unfair, I know. But that's the way it is.

RogueRivered said:

Yes, but you can't net winning sessions against losing sessions. Winnings sessions go into your income, while losing sessions are deducted (up to winnings) on your itemized deductions. If you don't itemize, you can't claim any losses. Unfair, I know. But that's the way it is.

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That is true unless you are a professional player in which case you file differently and losses are counted directly against winnings before figuring out the net income or loss.

RogueRivered said:

Yes, but you can't net winning sessions against losing sessions. Winnings sessions go into your income, while losing sessions are deducted (up to winnings) on your itemized deductions. If you don't itemize, you can't claim any losses. Unfair, I know. But that's the way it is.

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So let me get this clear... I know i cant net my total winnings with losses, but i can do this right??

ex..

session 1 +50 <-- net of the session (totals _ winnings +150 , losses -100)
session 2 -10 <-- net of the session (totals _ winnings +200, losses -210)
session 3 +20 <-- net of the session (totals _ winnings +300, losses -280)
session 4 -20 <-- net of the session (totals _ winnings +100 , losses -120)

so on my tax forms i fill out...
winnings (income ) +70 , loses (deductions) -30
not..
winnings (income ) +650, loses (deductions) -610

correct? basically i add nets of sessions and list them as winning sessions and loosing sessions. correct? there is a huge difference in income tax if i do it by sessions rather then by just totals of all winnings and losses.. huge amounts in the second case...

also.. since i`m switching my tables because some of them become empty that is still continuing one session correct?

TheseNutsWin said:

So let me get this clear... I know i cant net my total winnings with losses, but i can do this right??

ex..

session 1 +50 <-- net of the session (totals _ winnings +150 , losses -100)
session 2 -10 <-- net of the session (totals _ winnings +200, losses -210)
session 3 +20 <-- net of the session (totals _ winnings +300, losses -280)
session 4 -20 <-- net of the session (totals _ winnings +100 , losses -120)

so on my tax forms i fill out...
winnings (income ) +70 , loses (deductions) -30
not..
winnings (income ) +650, loses (deductions) -610

correct? basically i add nets of sessions and list them as winning sessions and loosing sessions. correct? there is a huge difference in income tax if i do it by sessions rather then by just totals of all winnings and losses.. huge amounts in the second case...

also.. since i`m switching my tables because some of them become empty that is still continuing one session correct?

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Yes, you have it correct, to the best of my knowledge. And it's OK to switch tables or multi-table during a session as long as it's the same type of game and stakes.

And yes, this only applies to non-professionals. Professional gamblers can combine their wins and losses and deduct other expenses, but then they are self-employed and have to pay self-employment tax, file quarterly, keep better records, and not have another full-time job. They have to show that it is indeed their profession and treat it as such. Much more complicated (but more fair).

Ahh to be English, it's not even the fact i don't have to pay any tax, it's just so complicated sorting it all out. Poker is supposed to be fun but doing all that would make it so boring for me.