Quote:
Originally Posted by DDTempest
QUESTIONS:
So you get like $55,000 in prize money ... how much of that do you have to pay in taxes? Is it up front? Do you still have people "investing" in your entry fee? If so, do they get their percentage pretax or post tax? Also, if you have investors, does that change the way you file it on your taxes?
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Your tax burden is only on net winnings, so $45,000 in tax burden. No, it's not up front (ie: the casino does not withhold winnings). Investors get their cut pretax and are responsible for paying their own taxes on those winnings. And yes, that changes the way I file it on my taxes since I only pay taxes on the percentage of the winnings that I actually retained. It's actually a huge pain in the ass tax-wise, but I won't get into it because it's boring.
Quote:
Originally Posted by Mr. Blonde
I'm very curious about this investing in your entry fee. I feel like "investing" = "gambling". But I don't know fuckall about gambling.
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Investing in me in a poker tournament isn't much different than buying a stock. Both are forms of gambling. Stocks just tend to be way less volatile. When you invest in someone in a poker tournament you're going to lose 100% of your investment a majority of the time but sometimes have a 20,000% return or something absurd. People who invested in me this year had about a 425% return.