November 17th, 2011, 08:42 AM
Join Date: Dec 2006
Originally Posted by zengrifter
What is wrong with this picture? zg
What a Deal: Poker Champ Pays No Taxes on $8.7 Million
By RON DICKER / DAILY FINANCE
There's Herman Cain's 9-9-9 Plan. There's the Buffett Rule.
But of all the tax plans we've heard lately, Pius Heinz's All for Me deal is our favorite.
Heinz is the German ace who recently won the World Series of Poker in Las Vegas, earning $8,715,636 -- tax-free.
Under the U.S.-Germany Tax Treaty, Germans' gambling income earned on U.S. soil isn't taxed by the IRS, reports Taxabletalk.com. Back in Germany, gambling winnings are also tax-exempt. So Heinz won't have to ante up one penny to any government, while most of his competition is paying a full house or more.
"All power to him," Taxable Talk author Russell Fox told DailyFinance.
Second-place finisher Martin Stazko of the Czech Republic doesn't owe anything to Uncle Sam for his $5,433,086 in winnings, but back home, he'll cough up $814,963.
Third-place finisher Ben Lamb of Tulsa, Okla., won $4,021,038 in the Texas Hold 'Em tournament, but he won't hold 'em all once the IRS is done with him. Fox estimated he'll fork over $1,524,011 in taxes.
Fourth-place finisher Mark Gianetti of Las Vegas will surrender $1,048,642, or 35%, of $3,012,700.
See full article from DailyFinance: (Dead link: http://srph.it/sPYXaU)
IMHO it's not so easy for Pius Heinz , because he lives in a Poker flat share in Vienna Austria,
and if his address is declared there not in Germany he has to pay under
certain tax circumstances to 50% taxes for his winnings,
because in Austria gamblers have to pay to 50% taxes when their livehood
is made by gambling.