Top Accountants Give Free Tax Advice To US Poker Players

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Wednesday, April 25th, 2018 | Written by Shane Larson

In the US, it has become something of the norm for poker players to seek help and advice from finance professionals, such as accountants, in order to help manage their profits and losses. Extreme money highs and lows in the game means that it can be somewhat difficult to work out the correct taxes that are due in the current financial period. However, the help of accountants providing free advice to poker players can help ease the burden.

One such tax expert is CPA Ray Kondler, who owns an accountancy firm in Las Vegas and who each summer at the time of the World Series of Poker offers free advice and promotes his business from a small booth located in the halls of the Rio All-Suite Hotel and Casino. As he explains:

“I play poker and in some World Series of Poker events and realized that there was a good need for a good taxation guy in poker and gambling. Now every year it just keeps expanding.. people come up to us and want some free advice and that’s what we’re here for.”

Recently, Kondler also got to offer some free advice to poker players through the main stream poker media, and this article highlights some of the important points that he raised during his interview, as well as the views of other top accountants specializing in gaming industry professionals, such as Mac VerStandig from VerStandig Law Firm in Maryland, and Randy Cowdery, president of Thoroughbred Tax Service in Las Vegas.

Taxes Paid by Poker Players

When it comes to managing your profit and losses as a poker player, there’s a whole host of factors that should be taken into consideration. One of the biggest issues is tax. If you are earning money from poker, you need to be paying taxes. It’s as simple as that.

But how much?

Professional players can win and lose large amounts of money in a short period of time. Keeping track of these figures is imperative. Some players hire an assistant to keep on top of the paperwork, making note of the sums of money that has been won, lost and wagered over the current financial year. Others choose to do this themselves.

Whatever you decide, the outcome needs to be the same – pay your taxes. If you have the time to calculate how much tax you owe in between playing poker then that’s great.

But if you find yourself stuck for time and busy playing poker tournaments, an accountant that provides tax advice free of charge might be the best decision for you. The problem with people who play poker is that they don’t see it as employment. However, if you play poker regularly or long term it should be treated like any other source of income. Whether that be full time or on a part-time basis.

If you were a self employed painter and decorator you’d be expected to file paperwork and calculate taxes. This is no different.

Free Advice From a Top Accountant

Missed deadlines for due taxes and incorrect tax-return paperwork are the reasons why accountants are giving free advice to poker players. Managing your finances when playing poker can be tricky. Especially cashflow and expenses. Below are the 3 most important points to take into account of what you need to be recording for tax purposes:

1. Record everything.

Without records, either on a computer or noted manually in a book, it’s impossible to know how much taxes you will owe. It’s important to record every financial transaction on your journey as a poker player. Whether you are purchasing something on a credit card or buying into a tournament, always ensure you have a record of it.

It’s also worth noting that records are best kept up to date, or at least make a note of what you are doing to update later, as it can become very easy to get bogged down by outstanding paperwork and is often something that many players put off until tomorrow.

Additionally, keeping track of your ins and outs is not just for the benefit of tax revenue services, but also for the befit of you too.

As a poker player, if you don’t make sufficient profit, you may not need to pay as much tax as you think. Furthermore, certain expenses can be included in the general running of your ‘business’ venture and can help reduce the amount of tax you will have to pay.

2. Invest or Save?

As a poker player, do you have a system in place for where you winnings go to? Do you have a plan of where to put cash if you win big? Just like poker players know the game inside and out, accountants are experts in their field of work. Professional advice is on hand to assist you with investments, bank accounts and savings that will help you use them to your advantage, such as having regular access, earning interest and dealing with federal and state taxes.

3. Be aware of other jurisdictions.

Poker players are known for traveling around to play in tournaments. So knowing the rules and regulations of other jurisdictions is very important. Whether you are playing in a different state, or outside the US, knowing what the tax liabilities and treaties are is important, and something your accountant can help you with.

Tips

Whilst hiring a financial expert to assist you with your cash is often a no-brainer for most poker players, there are some handy tips that can help you understand what will benefit you.

– Use online accounting software to keep track of your winnings and other finances. If you have access to software that is mobile or an app, you can update your finances on the fly or at the end of the day.

– Keep tax money separate from your poker bankroll so that you aren’t gambling with money you don’t have.

– Try to reduce your tax liability but don’t get too creative. Sure, offset your expenses and tournament costs to calculate your overall net figures, but don’t get too carried away. Especially without running it by your accountant. Poker players, like any other person who is self-employed or running a business, can be prosecuted for pushing the boundaries. Keep all activity within the law and ensure everything you wish to offset is backed up with receipts and paperwork.