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U.S. Tax Filing. Is an Arb a "Session?"

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Author Topic: U.S. Tax Filing. Is an Arb a "Session?"  (Read 194 times)
barnstorm
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« on: January 09, 2017, 03:36:50 PM »

You can PM if you'd rather keep it private.

I’m confident I can claim my Arb Income as a Business and do Schedule C. It means paying Self-Employment tax and declaring myself a Professional gambler, but allows me to deduct my losses and expenses.

Question: Do you think an Arb could be considered a "session?" Then I would only have to report the income from that Arb event? Or do you think we have to report the win as income and the loss as an expense?

Just reporting the net result of the Arb would be a more realistic picture of the business. But maybe I need to show that I actually placed two separate bets and won one and lost one, even though this will result in a couple hundred thousand dollars worth of wins and losses for only a modest net income. That is just the nature of arbitrage as your bets are higher because you are just scalping a little bit on the result of the two hedged bets. But maybe it is better to show all those wagers and dollars to make it more obvious that this was a serious business with a lot of activity despite the modest income?

Anyone know a good tax advisor?

Thanks!

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fairpunter
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« Reply #1 on: January 09, 2017, 06:19:48 PM »

Or do you think we have to report the win as income and the loss as an expense?

man,this is my work, tax statements and calculations and I`m tired of these calculations in every day, there are many type of taxes.
I haven`t calculated Arber`s tax statement since today :)
if I`m not mistaken in this case you have to show your net income.
wins - (loses + deposit/withdrawal fees and another transaction fees) = net income
In our country bettors(if they report their income) have to give tax 10% of net income of betting and lottery. I don`t know how much this is in your country. if you know official web site of your local tax ministery send me link I`m ready to check it for you, good luck
« Last Edit: January 09, 2017, 06:23:56 PM by fairpunter » Logged

ppintaluba
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« Reply #2 on: January 09, 2017, 07:49:14 PM »

The thread is called U.S. tax filling.  ;)
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Skaggerak
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« Reply #3 on: January 11, 2017, 10:52:20 AM »

How do you claim earnings or losses off a friends account? That's always something that's baffled me.
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fairpunter
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« Reply #4 on: January 11, 2017, 12:47:39 PM »

How do you claim earnings or losses off a friends account? That's always something that's baffled me.
  :D :D good question
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