Playboy Club London Backgammon Million?
Posted By: Bill Finneran In Response To: Playboy Club London Backgammon Million? (Casper van der Tak)
Date: Thursday, 8 March 2012, at 3:51 p.m.
In Response To: Playboy Club London Backgammon Million? (Casper van der Tak)
Yes...the IRS taxes gambling income....as well as most states have taxes as well since they piggyback on IRS definitions in general. If you itemize deductions in the US you can deduct your loss's for the year but only up to the amount of your winnings.
Also the US has a credit for foreign taxes paid that subtract from your US tax due (not sure about any limits in case of a big foreign tax bill).
You will have to figure that into your equity calculations along with your expected win %......7% rake + up to about 40% federal + state taxes for 1st place prizes. Make sure you document any hedges and/or partnership agreements.
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