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  • pdidawg82

    SC World Cup Bracket Champion

    • Blogger of the Month

    I’m sure it’s been discussed before, if someone can link me I’d appreciate it: are payouts that are paid after midnight next Thursday counted for 2014 earnings, since they were joined then, or for 2015?

    Edit – bumped this thread for this year. Think it’s all still relevant.

  • SteinerLJ15

    Could somebody from fanduel please respond to this. I was wondering the same thing.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    Hey guys, I don’t know the answer to this, but my guess is that it is tied to settlement. So, if a contest settles in 2015, the associated entry fee would be treated as a 2015 item to correspond with the income.

    That feels like the logical answer. Of course, life isn’t always logical. Some input from site reps on this topic would be appreciated.

    For clarity, let’s use three examples:
    1) I enter today’s King of the Campus for $200. That contest starts today, but won’t pay prizes until 2015. Is that entry fee counted in 2014 or 2015?

    2) I enter a 12/31 NBA or NHL contest for $25. Settlement occurs at 2:15 AM on 1/1.

    3) I enter an NFL contest today for next weekend.

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    I was just getting ready to post this with all my entries in the King of the Campus.

    Has anyone emailed support on this topic? If so, post the answer here please…

  • PJGuin23

    DFS Tax Guru

    Based off the common formulae I would think that since Entry Fees paid in 2014 would lower your Ending Balance in 2014 and the income received would correspond to 2015 since it would reflect on that Ending Balance if nothing else done for the year.

    But if you’re looking at it from taking Entry Fees and Gross Winnings separately perspective then fees and earnings would be all in 2015. I remember having this discussion before on proper income/fee calculation accuracy. There was an article
    by the AICPA saying the commonly used formula was correct while HR Block said separating gross winning and Entry Fees was correct. I’ll get around to finding the AICPA article at some point.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @PJGuin23 said...

    I’ll get around to finding the AICPA article at some point.

    This one? http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/Tax/FantasySports.jsp

  • PJGuin23

    DFS Tax Guru

    @rotokevin said...

    This one? http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/Tax/FantasySports.jsp

    Yep. That’s it. I’m having my 1st child tomorrow so I got sidetracked and working off a tablet here.

    I think most sites use something akin to “Net Earnings” based on the article.It also makes the “gambling” distinction clearer.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @PJGuin23 said...

    Yep. That’s it. I’m having my 1st child tomorrow so I got sidetracked and working off a tablet here.

    I think most sites use something akin to “Net Earnings” based on the article.It also makes the “gambling” distinction clearer.

    First child tomorrow? That’s EXCELLENT tax planning, sir.

    Hope all goes well and everyone is happy and healthy.

  • ranoa513

    @rotokevin said...

    First child tomorrow? That’s EXCELLENT tax planning, sir.

    This! So, so very much.

  • PJGuin23

    DFS Tax Guru

    @rotokevin said...

    First child tomorrow? That’s EXCELLENT tax planning, sir.

    Hope all goes well and everyone is happy and healthy.

    Thank you. Also just came in 326/47510 in the DK 500K Hail Mary. Best showing ever for me. I was Geno, Decker and Lamar Miller away from the whole 100k 1st prize. My bone headed ass picked Bridgewater, Asiata and Mike Evans.

    For us it will only be the exemption no CTC but still worth a small vacation for us. Wife just got final blood work and hopefully all goes well.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    Bumping for visibility. No site feedback yet. My support ticket at FanDuel has gone unanswered as well.

  • mberkowi

    • 2018 DraftKings FHWC Finalist

    PJ-Congrats and great planning.

    Along the same lines, is there a consensus how to handle tickets that I have not yet redeemed? If I have a $100 ticket won in a $12 satellite, is that $88 earnings for 2014, $12 loss or C, something else?

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @mberkowi said...

    PJ-Congrats and great planning.

    Along the same lines, is there a consensus how to handle tickets that I have not yet redeemed? If I have a $100 ticket won in a $12 satellite, is that $88 earnings for 2014, $12 loss or C, something else?

    The value of tickets in your account are treated the same as cash for 1099 purposes.

  • booyah72

    Have been doing dfs tax related things all day, even read rotokevin 2012 tax article. still have a question, since this looks to be the new tax thread. if i am a winning player on one site, and losing player on other sites. is there some form to be filled out, how does that work?

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @booyah72 said...

    Have been doing dfs tax related things all day, even read rotokevin 2012 tax article. still have a question, since this looks to be the new tax thread. if i am a winning player on one site, and losing player on other sites. is there some form to be filled out, how does that work?

    Here’s the latest edition of my tax article (last year, but mostly current): https://rotogrinders.com/lessons/Taxes_in_Daily_Fantasy_Sports-219602

    Whether or not it makes sense to deduct losses from one site against winnings from another will depend on several factors (magnitude of dollars involved, itemization of deductions, etc.). You’ll have to use either schedule A or schedule C to accomplish it if it makes sense. Consult a tax professional to evaluate your situation and the best way to file your DFS activity.

  • DillingerFour

    FD Rep - DFBMeeMee Champ (x2)

    • Blogger of the Month

    @rotokevin said...

    Bumping for visibility. No site feedback yet. My support ticket at FanDuel has gone unanswered as well.

    Not seeing a ticket at the moment. I blame the interwebz. But will find you an answer either way.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @DillingerFour said...

    Not seeing a ticket at the moment. I blame the interwebz. But will find you an answer either way.

    That would explain the lack of response, I guess. Look forward to the answer.

  • sethayates

    @rotokevin said...

    The value of tickets in your account are treated the same as cash for 1099 purposes.

    Dang, I didn’t think about this. I just won a $200 ticket that I can’t use until NFL this weekend.

  • DillingerFour

    FD Rep - DFBMeeMee Champ (x2)

    • Blogger of the Month

    Contest entry fees and winnings are counted at the time the contest is paid out. So any contest that is paid out after midnight on December 31st, is counted towards 2015.

    Here’s an example: A consultant does work in Dec 2014 but gets paid for it in Jan 2015, these earnings would not be on their 1099 for 2014.

  • Myprimetime

    Sorry, to clarify: money in play (I bet in 2014 and its no longer in my account) but get paid in 2015. That amount bet (action in play) is considered still part of my net earnings for calculating 2014, right?

    This is based on that formula of ending balance + withdraws – beg balance – deposits. So I’m asking if the amount bet is included in ending balance even though it’s not in my wallet at the time?

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @DillingerFour said...

    Contest entry fees and winnings are counted at the time the contest is paid out. So any contest that is paid out after midnight on December 31st, is counted towards 2015.

    Here’s an example: A consultant does work in Dec 2014 but gets paid for it in Jan 2015, these earnings would not be on their 1099 for 2014.

    So, it’s linked to settlement. Logic prevails!

    Thanks Curtis.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @Myprimetime said...

    Sorry, to clarify: money in play (I bet in 2014 and its no longer in my account) but get paid in 2015. That amount bet (action in play) is considered still part of my net earnings for calculating 2014, right?

    This is based on that formula of ending balance + withdraws – beg balance – deposits. So I’m asking if the amount bet is included in ending balance even though it’s not in my wallet at the time?

    I interpret it to be included in your 2014 ending balance.

  • SteinerLJ15

    Dillinger, you said that the entry fee is counted at the time of payout. Does that mean that if I enter an nfl contest today and it is settled next week that those entry fees are counted for 2015 instead of 2014. Sorry I just want to clarify.

  • DillingerFour

    FD Rep - DFBMeeMee Champ (x2)

    • Blogger of the Month

    @SteinerLJ15 said...

    Dillinger, you said that the entry fee is counted at the time of payout. Does that mean that if I enter an nfl contest today and it is settled next week that those entry fees are counted for 2015 instead of 2014. Sorry I just want to clarify.

    That is correct.

  • SteinerLJ15

    Thanks. A little disappointed. I was hoping to get a nice boost to the bankroll for 2015. Have a great new year everybody!

  • pdidawg82

    SC World Cup Bracket Champion

    • Blogger of the Month

    A related question: am I understanding this correctly – that my current balance plus pending entries amount is basically what I should treat my year end balance as?

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