Tax problem & winnings

[Bill]

I have a somewhat pleasant problem in that I am up by several thousand dollars (thanks mostly to some GREAT CAPPERS here at MJ's). The obvious problem is how do I get and use the funds without it being picked up at audit. I know I cannot claim it and I get audited about every third year (it goes back to a little problem many years ago when I beat a 50K tax problem - I did have to pay some 22K but the tax court accepted most of my documnetation).

I know if I deposit it and get audited I will have to explain it and I do not think offshore wagering is yet accepted.

Any ideas.

Thanks,
Bill

 

[Keyser Soze]

Buy dinner with it. Fill up your gas tank, at $2.00 a gallon you should be able to get a few tanks........Buy your groceries with cash.......It isn't really all that difficult. Just use it when you buy crap. Just don't deposit it into the bank. If you feel it isn't safe around the house, get a safe deposit box.............And if all of that still worries you, I'll give you my address and I will dispose of it for you.

 

[fletcher]

cash cash cash do everything in cash, cash your winnings if offshore have check sent and use check cashing store, if bookie use a safe in your house , and buy a good safe that is over 300 pounds if sitting on ground or best to have a under ground safe. out here they have places to house cash and jewels company called sovereign security no ss number needed and lot of the rich fat cats use the place, I like the under ground safe does not cost as much as you think to have one built into the house. open up a business and use all receipts as business write offs and pay yourself a salary and have taxes taken out of your new business( home base and make it a corporation) ex ticket broker who cares if you make sales get web site cheap one and sale your self tickets that don't exist, use fake names for sales and receipts are cash deposits made into dummy corp. but cash in safe and paying cash for everything is best with the dummy corp. added in and you can spend as much as you sale trust me and then taxes are taken from that, also start another ira in a mutual fund at different bank then your main bank.

 

[danmurphy jr]

Isn't internet gambling psuedo illegal? You would need a P&L statement from the book who placed your action or some sort of written P&L statement so losses could be deducted. Ain't gonna happen. Whoever said Cash Cash & check cashing stores nailed it. Western Union is expensive but they deal in cash & don't ask for SS#. At least they never used to

 

[Mjolnir]

Fletcher
thanks for the info. seems like you just gave info for free that alot of us would pay a good amount for.
appreciate it.

 

[fathead]

It is illegal for the IRS to turn you in to authorities based on information obtained from your tax records. It has to be that way, otherwise everyone would plead the 5th admendment and not report such income. You should not be worried about reporting offshore gambling winnings. Just make sure you report winnings on 1040 and losses on Schedule A separately, by the book. Don't lump it all into one net figure, or you violate IRS regs.

 

[BuffaloBill]

I am not so sure the check cashing store is a good idea. I could be wrong but I believe that if it is over a certain amount, the check cashing store must report it. As I said, I could be wrong, but you might want to look into that first before you start going there often cashing large checks.

 

[danmurphy jr]

any gambling endeavor will trigger the chance of an audit a bunch
the financial reporting act is $9,999. if an offshore book is breaking the law why would he report it? that being said, if you have already left a paper trail of more than $10,000 ?????

 

[fletcher]

BB I assumed everyone knew that you keep any type of check cashing under 9,999.99 you never break the 10 grand thing on any type of a check or your asking for trouble if it is made to a person and not a business, trust me a check cashing store is one of the most used places for way more then gambling winnings, and if you report winnings you can only write off losses = the amount of winnings when reporting to irs for taxes and need to have tickets of wagers placed legal like in vegas, off shore that won't fly. if you hit a video poker machaine or slots for over 1,000 you have to fill out a fourm from the casino one goes to you 1 to fed and 1 for casino so you keep all tickets atm slips with drawen from casino, same with amount of collecting on sports bets 10,000 in 1 place you have to have all kinds of paper work filled out and if you make 10 grand worth of bets in a week another form is filled out so that is why you don't make all your plays at 1 book in vegas if you are a bigger player.

 

[danmurphy jr]

Amen! end of thread

 

[BuffaloBill]

Fletcher,

Thanks for the advice. Interestingly, a friend of mine is a lawyer and I had a talk with him about all of this a while ago. I think I do remember him saying something about a check cashing store too, I've just never done it. According to him, he said that offshore is not illegal, depending upon the state you live in. He said it is governed by state law, not federal. He said that the federal laws are all designed for the offshore books, not the individual bettors. Also, he said that you could report the winnings just as you would your winnings in Vegas. You can itemize deductions and you can write off your losses to the extent of your winnings. For proof, you can print out your wagers from the offshore every couple of weeks and show the IRS that if they ask. Also, if you are placing wagers from a state where it is illegal, such as Florida, and you do decide to report your winnings, the IRS is not allowed to turn you into authorities. I don't see why they would anyway. If you are reporting your winnings to them, you are probably among the very few who do, so I am sure they would be happy to get whatever they can. Plus, I don't really think any authority would even care. They are after the bookies, not the bettors. If that 10 grand thing applies to the check cashing thing, then that is probably the best option if you are not reporting it. You would know better than I would. Take care.

 

[danmurphy jr]

Another Amen although I believe offshore gambling is against federal law because anything they can't tax is unlawful.
Couple of tears ago I read that all american books could not get back in the country. Someone also told me the Fed banned banks from offshore credit card transactions. I'll take Guido or Las Vegas anyday. Winnings problems? Yikes Batman

 

[Marco]

Has anybody here used the check cashing stores....what are thier charges, do they write down info off your driver's license or make you fill out forms.....do they tend to frown on transactions or cashing checks that appear to be gambling related?

I took a check from an offshore account, which was drawn on a USA bank, and deposited it in one of my accounts at my local bank. It was a small check for a few hundred....but the teller questioned me about the source of the check....I made up a plausible story about selling off some stocks...that seemed to satisfy her curiousity....

I stayed pokerfaced about it but deep down it kinda pi$$ed me off because she's paid to be a banker and not my financial consultant or morality guide....Christ, I deposited it and let the balance sit, there was enough money in the account if the check bounced that the bank wouldn't have been out....it's not as if I was some stranger and cashed it and ran outta the building.....(if that check would've bounced we would have all been in trouble, because it was from arguably the most rock solid book on the planet, thank you Spiro...)

Never was a big fan of safes in houses.....yes, they are fireproof and provide some security, but if the authorities decide to seize your assets they find the safe and have you open it, upon which time you have to explain why you have thousands of $$$ in cash laying around, and then just accept it if they decide on a whim that it's illegal and confiscate it.....

Don't even think about safe deposit boxes, a bookie in my state lost 300k in cash when the state patrol went to his bank to seize assets.....

If you have to hide money in your house make sure it's damn well hid, and away from the sniffing dogs nose......pvc makes for good capsules for burying your stash.......just find a nice place outside that is out of sight and out of mind....and unlikely for anyone to nose around or dig in...

 

[saint]

pvc makes for good capsules for burying your stash.......just find a nice place outside that is out of sight and out of mind....and unlikely for anyone to nose around or dig in...

Congratulations, you are the winner of a new stove. All I need is your address and a key to your garage where i can find a shovel.

 

[BuffaloBill]

Marco,

Not so sure what they do at those check cashing stores. Fletcher recommended it, so he would know. I Don't think he would recommend it if it was going to get you in trouble.

But it does seem like no matter what you do in all of this, you end up losing one way or another.

Either you lose your money to the offshore, or you lose your money to the IRS if you report it. And, if you do happen to win and decide not to report it, then you risk them coming after you and taking it themselves.

Think about it. How are you really going to make money at this?

Let's say you have a HUGE year and make $50,000. What are you going to do? If you report it, you will end up with about $25,000 after they get done with you.

Or, you can not report and prey you don't get caught. But how is that going to work? What are you going to do, go to the check cashing store every week for a year and cash a check for $1,000? Eventually it seems to me that someone will catch on to this. That just sounds too easy.

Bottom line, this is all for fun and if you want to do this for a living you have to move to Vegas, and pay taxes on the winnings. Not to mention winning your bets, which is a whole other topic. Take care.

 

[Marco]

saint.....you're assuming that I have pvc buried and also assuming that I would bury it in the garage....I can honestly say neither is true, if I actually had money to hide in this manner I doubt I would stash it in the dirt in my garage or even on my property at all...

BuffaloBill.....If I was to bring back money I'd probably try to bring it back via an ATM machine using one of those cards.....trying to think of the exact name.....but anyway just bring it in small and use it for spending money and to gas up the car.....no sense bringing in thousands of dollars in one shot and hoisting a flag up that the IRS can see....

The government has repeatedly and steadfastly proven to the American public that it cannot spend tax money in a responsible and useful manner......why should I give them any more than they are already wasting now???