Taxes on offshore winnings
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OFFSHORE GAMBLING IS LEGAL!
OFFSHORE GAMBLING IS LEGAL!
Most experts say, but depends where you live. And more true for sportsbetting.
there is a Federal Wire Act outlawing gambling over telephone lines, but that has always been interpreted by courts as outlawing bookmaking, not to be used against dudes placing bets. The 1970 RICO laws just federalize State gambling laws. The Travel Act again targets book operations.
Anyway, none of these anticipated internet and no one sure how it should apply here. Except the hard-cores at Justice. They flatly say it's all illegal, as they usually do...Heck, they argue that us just talking it over here is aiding and abbetting and everyone in this thread could get up to two years theoretically....
many local jurisdictions do prohibit sportsbetting. Some entire states do, like New Jersey.
At any rate, internet gambling is a legal "grey area" in most parts of the country---all would agree on this but Justice Dept. That is why Congress has had several bills proposed to directly outlaw it. One came close to passing in 2001.
.....and paying taxes on even illegal earnings is nothing new. That's how they get lots of criminals---sic the IRS on them. Pay your taxes and one big heat is off. IRS by law can't tell another federal agency of criminal activity anyway (technically, that is....)
OFFSHORE GAMBLING IS LEGAL!
Most experts say, but depends where you live. And more true for sportsbetting.
there is a Federal Wire Act outlawing gambling over telephone lines, but that has always been interpreted by courts as outlawing bookmaking, not to be used against dudes placing bets. The 1970 RICO laws just federalize State gambling laws. The Travel Act again targets book operations.
Anyway, none of these anticipated internet and no one sure how it should apply here. Except the hard-cores at Justice. They flatly say it's all illegal, as they usually do...Heck, they argue that us just talking it over here is aiding and abbetting and everyone in this thread could get up to two years theoretically....
many local jurisdictions do prohibit sportsbetting. Some entire states do, like New Jersey.
At any rate, internet gambling is a legal "grey area" in most parts of the country---all would agree on this but Justice Dept. That is why Congress has had several bills proposed to directly outlaw it. One came close to passing in 2001.
.....and paying taxes on even illegal earnings is nothing new. That's how they get lots of criminals---sic the IRS on them. Pay your taxes and one big heat is off. IRS by law can't tell another federal agency of criminal activity anyway (technically, that is....)
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freelancc said:on what street do you live..
:lol: good 1 freelancc
i agree redsfann! not to mention low profile is the better way to go anyways, its like putting a firewall up on your money..
Some of you have mentioned having a safe located in your house to keep it in......yes, it will be more protected against fire and theft, unless it is small enough that intruders decide to carry it or roll it away and work on getting into it from the privacy of a location of thier choice.....
How protected would it be if the IRS decided to seize your property and the items located within, such as a safe??? Happens to drug dealers all the time.....I can't honestly say that I trust the government enough to place large amounts of cash in a place where they can find it.....should they decide to raid your house.....they find the safe.....they open the safe whether or not you give them the combination or they call in a locksmith to drill it open.....they find a large amount of cash and make an automatic on the spot decision that this money is drug money, whether it is or not is pointless when they confiscate it and you have to prove otherwise......try hiring a lawyer when they seize all your assets..
There was a bookie busted in the state I live in......bank accounts were seized along with property and the contents of a safe deposit box inside a bank......the safe deposit box contained around 300,000 dollars......being in the business he was in...WHY FILL A SAFE DEPOSIT BOX UP WITH CASH WHEN HISTORY SHOWS THAT'S ONE OF THE FIRST STOPS FOR THE FEDS????
If anything make a hiding space within the confines of your house or property....although not fire proof like a safe, try to think about the dogs sniffing around also......worst case buy some PVC and end caps at different stores or different times, (pay cash).....and bury it someplace secure and private....
If I was to keep a safe around it would be to keep documents safe from fire, or use it as a decoy for where the real valuables are kept....
How protected would it be if the IRS decided to seize your property and the items located within, such as a safe??? Happens to drug dealers all the time.....I can't honestly say that I trust the government enough to place large amounts of cash in a place where they can find it.....should they decide to raid your house.....they find the safe.....they open the safe whether or not you give them the combination or they call in a locksmith to drill it open.....they find a large amount of cash and make an automatic on the spot decision that this money is drug money, whether it is or not is pointless when they confiscate it and you have to prove otherwise......try hiring a lawyer when they seize all your assets..
There was a bookie busted in the state I live in......bank accounts were seized along with property and the contents of a safe deposit box inside a bank......the safe deposit box contained around 300,000 dollars......being in the business he was in...WHY FILL A SAFE DEPOSIT BOX UP WITH CASH WHEN HISTORY SHOWS THAT'S ONE OF THE FIRST STOPS FOR THE FEDS????
If anything make a hiding space within the confines of your house or property....although not fire proof like a safe, try to think about the dogs sniffing around also......worst case buy some PVC and end caps at different stores or different times, (pay cash).....and bury it someplace secure and private....
If I was to keep a safe around it would be to keep documents safe from fire, or use it as a decoy for where the real valuables are kept....
Siezed? Happened to a sportsbettor
Siezed? Happened to a sportsbettor
Perhaps the most famous sportsbettor in Las Vegas is Lem Banker. During one of his many IRS audits they seized about a million dollars cash he had at his residence.
IRS claimed it was obtained by illegal bookmaking--a truly ridiculous thing to do for a renowned handicapper who makes tons of money legitimately in Las Vegas, and has for decades.
After civil suit IRS said they'd give it back (most observers believed it was seized to intimidate), but Lem won't take it back unless the IRS apologizes and admit they make a mistake. Which they never do. So IRS still has this cash, and it's been years now.
Siezed? Happened to a sportsbettor
Perhaps the most famous sportsbettor in Las Vegas is Lem Banker. During one of his many IRS audits they seized about a million dollars cash he had at his residence.
IRS claimed it was obtained by illegal bookmaking--a truly ridiculous thing to do for a renowned handicapper who makes tons of money legitimately in Las Vegas, and has for decades.
After civil suit IRS said they'd give it back (most observers believed it was seized to intimidate), but Lem won't take it back unless the IRS apologizes and admit they make a mistake. Which they never do. So IRS still has this cash, and it's been years now.
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Funny how this thread died so quickly without a consensus opinion of what is right..................some are saying that going offshore is flat out illegal and others say its not.........(althought I think it's obvious that it is legal being that there are many pro cappers that aren't living in Vegas)..............Has anybody here paid taxes on offshore winnings? If so, how did you claim it? Net profits only? Only on money that you actually collected? Gross profits and then deduct losses? Anyone.???????? Bueller.............anyone?? :sadwave:
Great thread. I am not sure what the correct conclusion from all this. Was wondering how all this applied to handicapping contest winnings? Technically, are they considered gambling?
Example: You win the Infinity Handicapping Challenge for 15K. First of all, are they even going to report the winning to the IRS? Are they going to deduct taxes? Anyway, they won't even let you withdraw the money until you roll it 5 times. So if they report it and withhold taxes would they just reduce your account balance?
Aren't they an offshore anyway so are they even required to file diddly with the IRS?
Example: You win the Infinity Handicapping Challenge for 15K. First of all, are they even going to report the winning to the IRS? Are they going to deduct taxes? Anyway, they won't even let you withdraw the money until you roll it 5 times. So if they report it and withhold taxes would they just reduce your account balance?
Aren't they an offshore anyway so are they even required to file diddly with the IRS?
