BANKROLL FORUM

Comments

  • mambaland

    I do not want to start a tax thread as they already are on here but my question is …with rake as high as it is that is a give..BUT how do you combat the near 40 percent tax at end of year..it seems you have a couple years where you lose then all of a sudden you win and taxes wipe that out and your still in the hole. anyone have any good strategies other than move to canada

  • Messiah717

    You’re seriously starting a thread like this and expect any serious responses?

  • icemanyeee

    take the chance and don’t pay

  • TheRyanFlaherty

    Be like 90-99% of the people playing DFS and not make a profit over $600?

  • Lee123

    Just keep records and balance wins with losses. You aren’t escaping taxes. In the long run, you’ll probably lose because the rake will catch you and you’ll enter tourneys against pros who play 150 lineups so you have no shot of winning

  • sochoice

    • 2017 DraftKings FBWC Finalist

    • 2017 FanDuel WFFC Champion

    Spend more time making money at a job and less time starting silly forum threads. And also play less DFS if you are complaining about taxes on winnings.

  • tomac

    There is certainly no way to beat taxes, BUT

    If you keep good records and understand the tax % to be close to 40%, you can certainly maximize your profit potential during the last week of the year if you are close to the tax number.

    For example, lets say its 12/28 and you are up $1000 for the year. 40% of that to Uncle Sam brings your net down to $600, which also happens to be the threshold. You can put that $400 in play in a high dollar GPP – as long as losing gets you under the threshold.

    Basically, if you lose it, its not yours to begin with, and if you win, everybody gets more – you and Uncle Sam.

  • wolfjb1

    Uh, you don’t beat taxes. You pay them.

    That said, there are about 800,000,000 different deductions that a person or company can claim, in order to reduce tax liability.

  • DFSAccounting

    Hello – We are the official tax partners of RotoGrinders. Please see are article here https://rotogrinders.com/articles/daily-fantasy-sports-tax-reporting-2383220

    And our thread here https://rotogrinders.com/threads/rotogrinders-official-dfs-taxes-q-a-thread-2360243?page=6

  • superjon

    Let’s say you win 100k in a GPP

    Do you pay taxes on that or just what you cash out?

  • Messiah717

    @superjon said...

    Let’s say you win 100k in a GPP

    Do you pay taxes on that or just what you cash out?

    You will be issued a 1099 on what you won but you should deduct loses when you do your taxes. In other words no just keeping money in your DFS account isn’t going to lower your tax liability.

  • bigez952

    @superjon said...

    Let’s say you win 100k in a GPP

    Do you pay taxes on that or just what you cash out?

    Cashing out has 0 effect on taxes you owe. It is only what your yearly profit is whether you cash it out or leave it in your account.

    Tax laws when it comes to gambling suck in that you can be a losing player for like 10 consecutive years and then finally hit a big payday only to get 25-40% taken from taxes even though with that big win your still a losing player for your career.

    Best advice to avoid that is to just not play or become a politician and work to change the tax laws to allow you to deduct previous years losses.

  • Trappist1

    @mambaland said...

    I do not want to start a tax thread as they already are on here but my question is …with rake as high as it is that is a give..BUT how do you combat the near 40 percent tax at end of year..it seems you have a couple years where you lose then all of a sudden you win and taxes wipe that out and your still in the hole. anyone have any good strategies other than move to canada

    If you have big wins, you will not mind the taxes. Still profitable after the tax. If you can not win big then the rake and taxes does not make worth it in the long run. The only thing you control is choosing contests wisely and being value conscious. You want to thread water till your turn comes and your line-up’s hit an elite score.

  • mambaland

    such a silly thread got a lot of responses..if you dont like the thread move on to one you like..hater

  • mambaland

    you do not deduct losses they are already deducted when you get your 1099 unless your saying deduct from sites you lost on…i guess i was asking more about claiming your computer, cable..internet…subscriptions etc

  • bhdevault

    • Lead Moderator

    • Blogger of the Month

    If you have questions about taxes in particular, I wouldn’t be asking random forum members, I would be asking a professional, sort of like the ‘other’ tax thread you mentioned. They also commented here.

  • BerkeleyBoss

    @sochoice said...

    Spend more time making money at a job and less time starting silly forum threads. And also play less DFS if you are complaining about taxes on winnings.

    Who hurt you? Spend less time making condescending posts.

  • Trappist1

    @BerkeleyBoss said...

    o

    Yes, condescending posts are not helpful. Just keep quiet and make no comment is better.

  • BerkeleyBoss

    @Trappist1 said...

    Yes, condescending posts are not helpful. Just keep quiet and make no comment is better.

    Fair enough, just can’t help myself with that guy!

    In regard to the OP, I agree that the tax law the way it’s set up is annoying as hell for DFS, particularly for GPP players. Ignoring taxes, I think i’m a profitable long-term player in the big GPP’s I play, but my most likely outcomes for each year are going to be negative. Not being able to deduct losses from previous years almost certainly makes me a long-term losing player.

  • Trappist1

    @sochoice said...

    Spend more time making money at a job and less time starting silly forum threads. And also play less DFS if you are complaining about taxes on winnings.

    Be less abrasive in your comments, you do realize how a lot of your comments comes across ? You come across as Mr. know it all and others must be dummies. Please!

  • Trappist1

    @BerkeleyBoss said...

    Fair enough, just can’t help myself with that guy!

    In regard to the OP, I agree that the tax law the way it’s set up is annoying as hell for DFS, particularly for GPP players. Ignoring taxes, I think i’m a profitable long-term player in the big GPP’s I play, but my most likely outcomes for each year are going to be negative. Not being able to deduct losses from previous years almost certainly makes me a long-term losing player.

    I was agreeing with your comment, that particular poster is very abrasive so was mentioning that.

  • BerkeleyBoss

    @Trappist1 said...

    I was agreeing with your comment, that particular poster is very abrasive so was mentioning that.

    Sorry, I just saw a “o” quoted instead of my post so I thought it was a “pot calling the kettle black” thing. Carry on lol

  • darko3131

    • 2016 DraftKings FFWC Finalist

    • 2017 DraftKings FBWC Finalist

    Fair question. I’m an Accountant who plays a lot of DFS and I ask myself this sometimes as well. The combo of so many optimized lineups being played & high rake is bad enough. Assuming you’re not trying to carry forward loses on a Schedule C, you get no benefit for a losing year but if you do have a big score, like say winning a millionaire maker, you’re signing a check over to the IRS for hundreds of thousands of dollars. Almost doesn’t seem fair.

    You’re never going to avoid paying taxes in that case but you certainly want to seek out a high level tax planner. If you find a CPA who knows the IRS code inside and out there are plenty of tax strategies that can be implemented to at least shave tens of thousands of dollars off the IRS bill. If you ever find yourself in need feel free to shoot me a message. As I said I’m in the Accounting field and my firm focuses on tax planning for businesses and high net income individuals. I met a millionaire maker winner at last year’s Draftkings Live Final, who we did a tax plan for and it worked out really well.

  • kcroyalty29

    How to not pay taxes on DFS?

    Simple. Just take any Cash Game WR’s I recommend in 2018. The zero’s and 3.3’s will make sure you’ll never have to worry about winning.

  • dolphinkick182

    How to not pay taxes on DFS winnings made simple. On December 31st do this:

    If that’s not for you, then pay what you owe or don’t play.

    Though there is always the chance you could get away with it. How many people can they actually audit? Guess it depends on the odds and risk vs reward. I take the simple approach and just pay up.

  • MotownGreek

    @mambaland said...

    i guess i was asking more about claiming your computer, cable..internet…subscriptions etc

    You can deduct those expenses only if you claim DFS as your occupation. If you’re playing as a hobby you can’t claim any of that. Even if you are a full time DFS player and rely on it as your only income, it is hard to prove that in one year. Once you have a couple years under your belt then it is possible to claim those expenses as business expenses, and thus offset some of your winnings.

    The fact that you’re on here asking a question like this though leads me to believe you are far from a profressional fulltime DFS player and I’d recommend you just work on getting better both with your lineup construction and your BRM. Don’t worry so much about taxes until you’re bring in tens of thousands a year.

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