Question About Online Poker

Yes...I am a total "newbie" when it comes to real money with online poker. I don't want to toot my own horn but I'm pretty good(but obviously that can change since I've never faced these online guys). Hypothetically speaking here. Say I win $100k(once again, hypothetically so please don't get on my case). How could I withdraw that without getting questions from certain figures and get busted? I know many of people do this, but how would I collect? Would it be taxed? Do I have to do something offshore(something my friend talked to me about)? What exactly do I do. I'm a bit hesitant when it comes to these kinds of things but I really want to do it.

 

Please...don't start and shit in this thread. I just would like answers. Thanks in advance for any help that I get.

 

I have never got to the point to be able to withdraw 100k or anything over 500 to be honest but I may be able to help a little.  As far as I know taxation on things won in online poker are the same as if you had won at an offshore sports book.  It is up to you to report the taxes.

They expect you to report your winnings from a local or vegas cash transactions, but there is no record of the transactions so its easier to get away with unless you are living way above your reported salary (owning 3 ferraris is a bad thing if you report 50k a year, haha).  The concern I have about getting checks from online poker or books is that if you get a check in the mail and even just cash that check, there is still some sort of paper trail.  If you don't ever get audited it will be fine, but in the event that happens its probably worth it just to report it.

    

I hope everything you said is right because I understand it all.  And check would be the only way I would recieve the money($2,500 max withdrawal).

 

 

Anybody ever collect $10k+? Maybe they'll understand the legal thing a little better then us.

Sparky, your aspirations at online riches are admirable, but I think you are getting WAY ahead of yourself.  Just go with a solid online poker site like PokerStars or Full Tilt, as they WILL pay if you ever hit it big.  I would not worry about the best way to withdraw large sums of money until you have that luxury.  If you are ever one of fortunate few lucky enough to cash big in online poker, then come back on this site for advice from a multitude of people much sharper than me regarding taxes, banks, etc. 

 

Good luck with your endeavor.  Dealing with a solid company should be your only concern at this point.   

One option that will work for withdraws is see if your book allows personal withdraws.  Say it is in Antigua.  Go collect and live it up and bring some back, have your girl, your mom....all carry some back.  100k no but if you do well you can...

 

The other side...they may shut you down

I am not an accountant.  But, from an IRS perspective, they don't care if an activity is legal or illegal.  If you gain cash, you have to pay tax on it. As silly as it sounds, if you make money from bootlegging, blackmail/extortion, embezzlement/ theft, or fraud, you must pay taxes on it.  And those examples are taken directly from the 2008 US Master Tax Guide (paragraph #787).

 

So, you have to pay taxes on gambling winnings.  Whether or not the gambling is legal or not is another matter.  Gambling losses, though, are deductible.

Thanks For the help...

 

Does FullTilt accept Mastercard? It's not working for me.

Book accounts are perfect off shore accounts!

 

 

I'll let you know about big withdrawals after I take down one of these WCOOP events. 

 

I just won my way into Event 2 which is tomorrow. 

Good luck.  I got into Event 2 through a $22 satellite, so I made a nicer profit than you would think.  I had my heart set on playing Event 13 (Stud is my favorite game), but it's on Labor Day.  My girlfriend has very few days off, and if I spend one of them parked in front of the computer, she'll kill me.