High Roller question regarding taxes.

[Rspeirsmlb]

If a non players club member at a casino lays down ohh let's say $5k on the table and walks away with a profit of $5k (an obvious total of $10k worth of chips) Now when he cashes out....do they take taxes out right then and there, or is it up to you to claim what you make at the end of the year? Another thing, if they do take taxes out right then and there, how do they know what you bought in for and what is profit...And finally for a high roller card counter, how much of a negative effect on +EV are taxes? These may seem obvious, but I've never had those big of winnings before so I was curious to see how this works. Thanks.

 

[EasyRhino]

Sigh.

The casinos don't withhold taxes on table games, no matter how large the win, nor to they report a W-2G form to the IRS.

It's only on "jackpot"-style long-odds winnings (slots, video poker, lottery, maybe a caribbean stud progressive bet). In these cases, I understand the taxes are reported, but not usually withheld immediately.

If you start operating with more than $10k in cash in a day, the cashier will make you fill out a CTR (currency transaction report), which is filed with Treasury. This is mainly for money laundering purposes, although I imagine it could find its way to the IRS.

Now, all of the above doesn't really matter, because the IRS says you're supposed to keep track of all your session wins and losses, and you're supposed to report those on your taxes, and pay taxes on the wins.

 

[shadroch]

I believe an exception to the No W-2s for table games rule is if you hit a bonus such as a Royal Flush on Carabbian Draw Poker or some other jackpot style win.

 

[Kasi]

I believe an exception to the No W-2s for table games rule is if you hit a bonus such as a Royal Flush on Carabbian Draw Poker or some other jackpot style win.

Yeah - i saw a guy win $6000 at a $10 Let-It-Ride table.

They put the cards in a baggie, a glass cover over his chips, and took him away.

 

[humonstick]

what about getting the 200:1 payout for lucky lady when you have two queens of heart? What about the 1000:1 payout for lucky lady when you have two queens of heart and dealer have blackjack?
Do casino consider these two big win as jackpot and file a W-2G to the IRS, so the government can tax the **** out of us?

 

[tedloc]

Rule of thumb

what about getting the 200:1 payout for lucky lady when you have two queens of heart? What about the 1000:1 payout for lucky lady when you have two queens of heart and dealer have blackjack?
Do casino consider these two big win as jackpot and file a W-2G to the IRS, so the government can tax the **** out of us?

For Horse racing and casino games, if you win a bet that pays 300 to 1 or better, you will have to fill out a w-2, if it pays more than $600

 

[Rspeirsmlb]

Soooooooo, from the sounds of it, if I walked outta the casino with over $10k worth of profit, I would have to claim that at the end of the year?

 

[Rspeirsmlb]

Which leads me to an interesting question....of all the blackjack players on this site.....do you keep your bankroll in bank account, closet, safe, etc.? Curious to know what people who build there bankroll and don't spend it actually do with it. I've heard some roll up wads and put them in their matress springs.

 

[shadroch]

Soooooooo, from the sounds of it, if I walked outta the casino with over $10k worth of profit, I would have to claim that at the end of the year?

As Easy Rhino has already pointed out,you are supposed to pay taxes on any profit you make,$1 or $10,000.The amount is immaterial.

 

[Sonny]

Soooooooo, from the sounds of it, if I walked outta the casino with over $10k worth of profit, I would have to claim that at the end of the year?

For a CTR, cashing anything $10,000 or over genereates the paperwork. But that doesn't have to be $10k profit. As Rspeirsmlb pointed out, it could be a $5K buy in and a $5k profit, or even a $9,900 buy in and a $100 profit.

The casinos are also "suposed" to write up a MTR (multiple transaction report) for transactions of (I think) $3k and over, but that usually doesn't happen unless they have a reason to...and in that case they would probably also fill out a SAR (suspicious activity report). Yeah, they have to do a lot of useless paperwork in a casino.

-Sonny-

 

[Sonny]

do you keep your bankroll in bank account, closet, safe, etc.?

I keep the majority of mine invested but I keep one trip BR stashed away in the house in case of emergency (like a sudden 2:1 BJ promo!). I keep another few trip BRs in a money market account so that I can have quick access to them if I need it.

-Sonny-

 

[Rspeirsmlb]

One more Question.

I'm guess I'm just being a little paranoid about it because I don't want to get audited and have them think or confusing my buy in with my actual profits. I don't want to have to pay taxes on my buy-in. Is there any way for them to distinguish between the two so you are ONLY paying taxes on your profits? Thanks for the help, I know I may be sounding a little redundant or whatnot, but it just didn't come off clear to me. Thanks guys.

 

[Kasi]

I'm guess I'm just being a little paranoid about it because I don't want to get audited and have them think or confusing my buy in with my actual profits. I don't want to have to pay taxes on my buy-in. Is there any way for them to distinguish between the two so you are ONLY paying taxes on your profits? Thanks for the help, I know I may be sounding a little redundant or whatnot, but it just didn't come off clear to me. Thanks guys.

I think it goes a long way if u keep a contemporaneous diary to show them.

Something's that not bad to do anyway.

Not sure but I don't think losses can be offset dollar for dollar. I think they are itemized. I'm sure some honest tax-paying citizen knows about it. And forget about picking up all the losing tockets at the race track lol.

Of course, if ur like my wife, u say "I won $1000". Then I ask how much money do u have? And she says nothing lol.

 

[Kasi]

Where'd u say u lived? lol.

My comp broke and I can't get get smileys to work on this one!