Withdrawl Inquiry-- File for taxes?

[Hughthehand]

1099MISC instructions specifically state "Trade or Business reporting only. Personal payments are not reportable."
You only report $600 or more in the course of your "Trade or Business".

 

[Legion]

For poker winnings, even if you lose more than you win, you still have to file, you cannot zero out your losses, you still have to report your winnings.

IE: You make $5,000 but then lose $4,000. You can't say you won $1,000, you have to say you won $5,000 but lost $4,000

I woud imagine entropia is under a similar clause, I believe for most places it is $600 you need to report, anything under that(IE:$550) is fine without reporting.

I wouldn't worry about it too much.

but then again eu isnt gambling. When will ppl understand that?? If your gonna file for taxes it will be for income taxes.

 

[n55w131]

Misc Income

So me and some soc mates were talking and we came to talking about withdrawing peds. I told them i had withdrawn 6k peds before, and when i got the cash it was like 550$ usd. Someone said i have to fill out a W2 or W4 or whatever, like when you hit the lottery or something.
But you have to fill one out if you hit more than $1100 or 1200 or something. Does anyone know if you have to claim it as income or something? or after a certain Dollar amount?

Just keep track of your time spent online to get it, It is a valid argument that most are not aware of, time is money, it takes time to earn money, therefore, all expenses which contribute to the earnings are deductable.

Using Las Vegas as an example, if you win big, the casino takes 25% right off the top for tax purposes, therefore at tax time when you report your winings you will receive a 1099-Misc income form from the casino showing the tax collected, but you can also report your expenses to obtain this wining, for example, your airfre, food, and lodging. This is legal as long as you keep receipts and your expense deductions do not exceed your winings.

 

[Creature]

but then again eu isnt gambling. When will ppl understand that?? If your gonna file for taxes it will be for income taxes.

Or capital gains in the UK

 

[Dagata]

but then again eu isnt gambling. When will ppl understand that?? If your gonna file for taxes it will be for income taxes.

Neither is poker, however if you play and don't declare yourself proffessional in the field, you have to report your winnings and losses without zero summing them beforehand.

 

[Ransom Hastings]

Doesn't Mindark have a Swedish banking license or permit? I thought I read that. If so, it's just a bank withdrawl. No interest to pay taxes on.

 

[Gutwrench]

I was wondering... how about you withdraw like $300 each month or so instead of the "$600", would you still have to file that for taxes???

 

[Immortal]

why are you asking the forum and not support? There are people paid to specifically handle financial queries such as these you know >.>

 

[das]

support never really answered it for me,
they told me to check with my goverment

 

[aridash]

why are you asking the forum and not support? There are people paid to specifically handle financial queries such as these you know >.>

are you serious? Support rarely answer a question about the game, what chance they know the tax law of dozens of countries

 

[Immortal]

are you serious? Support rarely answer a question about the game, what chance they know the tax law of dozens of countries

True, but ...uhhh...look over there!

I think the well-read financial geniuses (cough) on this forum are not the reliable source of information to be sourcing when needing pertinent tax info, since it's different for every country. I know here we can claim it as "hobby" income (which does not need to be declared) (and if they dare cite it as taxable I will wave my deposits at them and say "audit this"). Different countries have different loopholes (taxation laws).

I have a friend who makes money via gambling (seven figures), and all his withdrawals are tax free, as long as he pretends it's not his main source of income.

support never really answered it for me,
they told me to check with my goverment

That sounds like pretty damn good advice. Are people scared to ask their tax department for tax advice(sic)?

 

[das]

I know I haven't asked yet..
But didn't push the withdrawl button either

 

[Justin Thyme]

600 is the magic number. anything greater than 599 has to be claimed.

For examples I have 2

First is Bowling. When i went to nationals I wont like 800.00 I had to claim that and was sent a 1099 by the USBC (united States Bowling Council) I was then able to use the receipts for new Bowling balls and Plane tickets and Hotel reservations for the trip. Your receipts can only be for the one year in which you are filing fo.

2nd Fishing Hit a 43 lb Catfish which was a jackpot fish and i Got like $480.00 for it. "Since it was under the 599.00 amount no 1099 sent therefore I did not have to claim it.

Key is if you make more than 599 you must file. You can always counter that out by printing off the deposits that you put in for that year.

 

[chevrons]

each country has its own tax laws, which makes broad statements here (an international forum) difficult. but this much is true: your deposits are deposits and withdrawals are withdrawals. they are certainly not "gifts", MA book deposits as sales and count withdrawals against gross sales to arrive at net sales. plus i dont think its possible to "gift" a company anything (imagine, you could gift Vodafone for your mobile and they pay no tax?).

You've missed my point entirely. The language of 'deposit', 'sales', etc applies to situations like banks, where a legal right of withdrawal, or purchase of goods or services applies; for a Contract to exist, there has to be a legal obligation on both sides. That isn't the case with EU according to the EULA; the correct word for handing over money without any right of return is a 'Gift', whoever the recipient is.

How MA account for this is irrelevant - they operate under company laws of taxation. Personal taxation laws are different, and usually exclude Gifts.


On another point, if withdrawals were taxable, under UK law, losses can be carried forward from one year to the next, so all deposits and expenses would be deductable, not just those in the same tax year.