Tax Liability

[cable]

My little system has earned a few $k's this year and I plan to increase my Bank in July and again next January, to increase my profits.

IIRC someone posted info on Taxation Liability (or otherwise) a couple of years ago.

Any info would be appreciated.

Thank you,

[kenchar]

There is no liability if it's not your main source of income, even then it's pretty hard for them to get you.
Many years ago they took a person to court who was self employed and his business lost money every year, but he made huge profits gambling.
Without going into the ins and outs the Judges decision was that if he decided in favour of the taxation office then that meant that anyone could claim gambling losses against their income as the taxation office couldn't have it both ways. The taxation office did their sums shit themselves and withdrew the action.
I am still very wary of the bastards so have put some money in a friends business which I actually make a profit from and that is my taxable income.
Last year I got $9000+ back with my family allowance ( which I claim yearly ) and never paid that much in tax.
All perfectly legal and suits me fine.

[Shaun]

From the way i understand it is if you are not involved in racing in general like a bookmaker or own horses then you ar fine...it is the other people that have to worry

[partypooper]

Cable, as I understand it you have already paid your tax from the pool. "Unless" you set up a business, i.e. If you claim expenses e.g. publications, Course enrty costs, Travelling expenses, depreciation etc. not sure though how you would go about claiming LOSSES (betting) especially carrying them forward from year to year (if you hit a bad patch I mean). Interesting though if anyone here has actually tried it with the IRS???

[kenchar]

PP,
I hope I never have to try it on with them, as although I believe I am legal in every sense they still worry me in the back of my mind.
I have a couple of friends that were self employed thought they were doing everything correctly, but little Johnny's boys got their claws into them and they both lost everything, including the family home.
Still I suppose all the money they got off them went to a good cause, y'now what I mean the 25 year old pensioners.
By the way the $50 bets are still going good with a few losing days but well ahead. Have a great trip.

Cheers

[Bhagwan]

If you dont tell them anything, how are they going to know.?
Let them catch you first ,then declare all your losses from the past aswell .
They wont want it from both ways.

For a bit of fun ,why not declare some pretend losses from gambling in your next tax declaration & let them knock you back in writing with all the explanations & sub clauses as to why,then keep that letter securly tucked away for whenever you may need it.

If you are betting with the TAB ,you have already paid a TAX so in effect you would be legally be able to claim all of that TAX (16.5%) back if the IRS were insistant that you owe them.
Beleive me , once you start down that line they wont want to know you , too hard.

If you want to run a bogus business to declare, why not say you have a poorly run mail order business selling raceing systems that dont work .

[pardon me]

one really does not generally have to pay income tax on winnings.especially day to day punters.
my brother is and has been a professional punter for 10years , t'over of millions p/annum and has a personal ruling no tax on winnings.
i guess this is because then one could claim losses as a deduction and the tax boys dont like that too much.

as already stated here you pay when you place the bet and it is a nice slug too.