"MTW" <mtwingcpa[at]yahoo.com> wrote:
- quote -

In theory, it is possible to win at blackjack if one is a
good card counter, but this has become much more difficult
due to certain rule changes in some casinos and the fact
that because the technique has become more widely
publicized, the casinos are on higher alert for it.

It would be interesting to know how the IRS would handle
attempts by counters to deduct various expenses that are
arguably ordinary and necessary in connection with being a
professional blackjack player -- for example, the costs for
disguises (e.g., makeup, clothing, different colored contact
lenses), or the costs of putting a team of counters
together. I suspect the field offices in Las Vegas and
Atlantic City may have had some experience with this.

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A.G. Kalman wrote:
- quote -

Technically, it's earned income anyway. That's why the
gambling form is of the W-2 series; the W-2G; and not
[historically, until the States got involved with their
lotteries] a 1099-G. One "sweats" while earning it, and
one's amount is certainly "at risk."

Of course, it's not earned income for most for purposes of
EIC and other things that generally depend on wages or
self-employment; that's Congress for you.

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MTW wrote:
- quote -

Mike,

check Drudgereport.com for a link to the Canadian
immigration site. It's had quite an increase in hits over
the past week.

ChEAr$,
Harlan Lunsford, EA n LA
Sat, 6 Nov 2004 23:04:45

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MTW <mtwingcpa[at]yahoo.com> wrote:
- quote -

You like gardens, do you?

Check into Medicare and Medicare supplements for the time
before you qualify for Canadian medical care.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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John H. Fisher wrote:

- quote -

I know a guy who knows a guy who allegedly makes a very good
living through a combination of wagering on sporting events
and loan-sharking. He doesn't appear to be a bookie per se.

But, I would be very surprised if anyone could make a living
(for very long) by playing casino games.

MTW

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Arthur L. Rubin wrote:
- quote -

If one meets the IRS defintion of "professional gambler",
then one reports income and expense on Form 1040 Schedule C
and is subject to SE tax. It is earned income.

--
Alan
http://taxtopics.net

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John H. Fisher wrote:

- quote -

Not really. But at least half of the time. When asked if
something was gambling, W.C. Fields replied "Not the way I
play it."

There is at least one federal court case of someone who was
a professional gambler. My mother claimed one of her uncles
was a pofessional gambler - turns out he was a bookmaker who
warned me about gambling the only time I met him.

Dick

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Dick Adams wrote:

- quote -

And, speaking of weather, some of us might find the
political "climate" up there to be more favorable, as well.
I haven't thought about moving to Canada since the late 60s.
But, I'm now giving more than casual thought to the
possibility of retiring there, probably in the Victoria, BC
area.

MTW

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Dick Adams wrote:

- quote -

Is gambling income "earned" income for these purposes, even
for a professional gambler? I'm not convinced.

- quote -

And "free" health care, paid for by the higher taxes.

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shagnasty wrote:

- quote -

Is that really considered "gambling income" under the law?

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- quote -

Some people are bookies and make a profit from gambling.

An expert at something like poker might be able to fleece
enough suckers to make money gambling.

Gross winnings are taxable and losses are allowable as an
itemized deduction, not to exceed winnings.

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- quote -

I have read or at least scanned every post in this newsgroup
and I never inferred professional gambling to be a Canadian
occupation.

- quote -

Move outside of the U.S. and you get the foreign earned
income exclusion, but you still have to file a return.

The advantage of living in Canada is more snow and colder
nights.

And you are correct that "doesn't seem to make sense."
When taxation and logic come together, it means the
Congress was asleep at the switch.

Dick

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- quote -

Ordinarily, it doesn't make sense to me that anyone can
believe that gambling will become their main source of
income. Generally, gamblers are ALL LOSERS!!-

At any rate, your losses may be used to offset your gains.
If you do have a profit from business (not easily
justified), the gains are subject to both tax and
self-employment tax.

If you are a US Citizen, not in the business of gambling you
claim your losses (but only to the extent of your winnings)
on Schedule A of your tax return. There are credits for
taxes you pay to other countries.

United States citizens living abroad are required to file
annual U.S. income tax returns and report their worldwide
income if they meet the minimum income filing requirements
for their filing status and age.

You must contact the Canadian Government to determine
whether you must file a Canadian tax return and pay Canadian
taxes. For the United States income tax return, you will
have several options available to you regarding claiming a
foreign tax credit or excluding some or all of your foreign
earned income.

References:
Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
Publication 514, Foreign Tax Credit for Individuals
Publication 597, Information on the United States-Canada Income Tax Treaty

You may access these publications at http://www.irs.gov
Canadians may receive a refund of the 30% tax withheld by
filing a 1040NR. They need a taxpayer identification # to do
so. Just apply losses to your winnings and request the
refund. One may file back as far as 3 years from the filing
due date of a return in order to claim a refund.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I'm flirting with the idea of becoming a professional
gambler. With the things I've read in this group, I've come
to understand that if gambling is going to be my main source
of income, I'm going to have to pay taxes in Canada.

My question is, what is the rate that I'm going to be taxed
at? Is it higher than the US? Are there any advantages to
living in Canada to do this as opposed to the US? What US
taxes am I still responsible for, what countries am I paying
tax to (as I've read that I still pay US tax while living
abroad.. even if I become a Canadian citizen? doesn't seem
to make sense.)

Thanks,
Chad

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