Accountants and Tax Attorneys Part Deux

OCmike · Post by **OCmike** » Tue Oct 09, 2007 5:47 pm

The OL decided to turn gambling degenerate last weekend and was playing $100 on GoldenPalace.com's USA website GoldenCasino.com. For some reason, she decided to play the ultimate house game, Caribbean Stud Poker and ended up getting a straight flush for 10% of the jackpot, or about $20,000.

My question is, naturally, what are our tax liabilities for this money? We're going to open up a money market account with it for the time being and so that it won't appear in our checking account. The casino pays out $8,000 per week on large payouts via a European bank (not from an offshore bank). So will the bank report the income when we deposit such a large check?

Serious replies or OCZyclone blasts only please. :P

BSmack · Post by **BSmack** » Tue Oct 09, 2007 5:56 pm

First thing I would recommend is dropping your #3 receiver for a kicker. Make sure you pass over two total stiffs to get to the kid everyone thinks might be the next Randy Moss. If you can, pick up a kicker who's not even in the top 10 while passing over 2 higher rated kickers.

OCmike · Post by **OCmike** » Tue Oct 09, 2007 6:03 pm

If he was "the next Randy Moss", why is he #4 on the depth chart? He, along with Sidney Rice, Dwayne Jarrett and some of the other talented receivers in this draft are definitely future stars, but it's doubtful they'll show much this year. Case in point... Jerry Rice blew goats and had a penchant for dropping passes in his rookie year, to the point that most Ninerfans were questioning who this Rice fucker was and why we drafted some schmoe out of Mississippi Valley State in the first place.

Now back to your regularly scheduled thread...

Mikey · Post by **Mikey** » Tue Oct 09, 2007 6:51 pm

It's because Montana wasn't throwing bricks.

carry on...

Smackie Chan · Post by **Smackie Chan** » Tue Oct 09, 2007 9:43 pm

When I want sound financial advice, T1B is the first place I think of, too.

OCmike · Post by **OCmike** » Wed Oct 10, 2007 2:23 pm

Smackie Chan wrote:When I want sound financial advice, T1B is the first place I think of, too.

Let's see, Terry's a lawyer and BSmack works in HR, I'm a data analyst and you're a roady for Motorhead...or you look like it anyway. We've got a pretty good mix of occupations in here, so I figured there's got to be a bean counter in here somewhere.

BSmack · Post by **BSmack** » Wed Oct 10, 2007 2:25 pm

OCmike wrote:
Smackie Chan wrote:When I want sound financial advice, T1B is the first place I think of, too.
Let's see, Terry's a lawyer and BSmack works in HR, I'm a data analyst and you're a roady for Motorhead...or you look like it anyway. We've got a pretty good mix of occupations in here, so I figured there's got to be a bean counter in here somewhere.

I would rather hand wash PSU's shorts than work in HR. Detard was the HR guy. I'm a Systems Engineer.

OCmike · Post by **OCmike** » Wed Oct 10, 2007 3:17 pm

Just yanking your chain :D

Terry in Crapchester · Thu Oct 11, 2007 5:45 pm

BSmack wrote:I would rather hand wash PSU's shorts than work in HR.

Thanks. \/ \/ \/

Mister Bushice · Post by **Mister Bushice** » Thu Oct 11, 2007 7:10 pm

Mike,

Banks don't generally report large deposits to the gov't unless they exceed $9,000. It's a war on Drugs thing, Bush Srs attempts to watch the flow of large cash amounts into and out of accounts to determine if cash from drug sales was being laundered.

Not really sure how these online casinos are regulated, but real life casinos report winnings, and they are income you would have to report and pay on, just like lottery winnings. Some casinos in Vegas reportedly have IRS agents on call to take the gov'ts cut right there before you go, but only for big winnings.

I'd check with a tax att'y, especially with the online gambling issue as that is a new area they don't know quite how to handle or regulate very well yet, except to shut down the off shore ones claiming they are controlling gambling addiction, when they're really worried about revenue losses.

OCmike · Post by **OCmike** » Fri Oct 12, 2007 8:44 pm

Mister Bushice wrote: Not really sure how these online casinos are regulated, but real life casinos report winnings, and they are income you would have to report and pay on, just like lottery winnings. Some casinos in Vegas reportedly have IRS agents on call to take the gov'ts cut right there before you go, but only for big winnings.

Unless things have changed in Vegas...

They pay you whatever you win on slots on the spot, but you have to give them your driver's license and SSN or card on the spot and they report the winnings to the gov't and give you a W-2 (?) to report with your taxes.

At the cashier's cage, they only report individual winnings of $10,000 or more to the IRS. For instance, I once won $11,000 in one night a few years back (woo hoo!), but I took it to the cage in two lump sums so that I wouldn't get nailed. Ma OC didn't raise no dummies.

Y2K · Post by **Y2K** » Fri Oct 12, 2007 9:19 pm

Mike,

Take 25% of all winnings and stick em into 3 month CD's at your bank and make sure all the monies received will be available by April 15 08 in case the casino has to report your tax liability to the IRS. If they do you'll have to pay so be prepared to report it as income and walk away. Remember that gambling losses can be used to offset winnings, a couple years ago the wife hit 5 outta 6 on the Cali lottery and was paid about $1600 taxable. She talked with her friends at the office and I called people I know who regularly play the lottery and we asked them to save their losing tickets and scratchers instead of throwing them in a trash can. After about 3 months they all handed us their stash of old losing tickets and we ended up writing off the winnings. Sure 20 grand is a bunch but if you consider the effort worth it it pays back large. Writing off only 2 grand will save you almost $500 in tax liability.

But of course...

You need friends and people that actually "like" you....

get busy... there's still time......

edit to add: remember that 20 grand may push you into a higher tax bracket and if you don't change your withholding status all the money you made this year will be charged the higher rate that you didn't plan for. Save it till your clear of liability and then have a hella good time. Rack the payout...