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  • zpruitt3

    Need some help from some of you tax guys. How will the NBA slate on 12/31 effect the profit/losses of 2015 calendar year and 2016 calendar year? If I buy-in on Thursday (12/31/2015) at 7:00pm EST, but my profits are not processed until ~ Friday (1/1/2016) at 3:00am EST – Can I deduct the buy in from 12/31 from my total 2015 profit even if I win because I will not be paid out until 2016?

    Thanks

  • PJGuin23

    DFS Tax Guru

    It should be figured into Year End Balance which in case would lower the 1099 amount. Of course the income is for 2016 without the entry fee deducted.

  • eruthruff

    So if you had a $1000 profit, you could avoid a tax report to the IRS simply by betting $500 on a contest that won’t settle until Jan 1st or later (such as week 17 NFL)? (I realize that you’re still responsible for the taxes either way)

  • einars

    @PJGuin23 said...

    It should be figured into Year End Balance which in case would lower the 1099 amount. Of course the income is for 2016 without the entry fee deducted.

    i dont think this is correct (tho pj knows his stuff, so i could be wrong), otherwise you could defer your taxes like a mofo lol.

    last year i had a contest that was on NYE and was settled (barely) on new years day and it was included in my 2014 income.

    there was a much longer thread about this a bit ago, ill see if i can find it.

    mostly on pg 2 https://rotogrinders.com/threads/dfs-and-taxes-1001040?page=1

  • eruthruff

    OK, I found the thread from last year where conclusion seemed to be that you can’t do this. If a contest starts one year and ends the next, then both the entry fee and the winnings count towards the next year. Equivalently, the value of active entries at midnight on Dec 31st are (in effect) are added to your end-of-year account balance. Same goes for any tickets in your account. https://rotogrinders.com/threads/a-novice-tax-related-question-for-12-31-488837?page=1

  • ldavidjm

    Does anyone know what happens with live final tickets? For example if you won a FD basketball live final ticket (which I haven’t) are you going to get the whole $16000 “value” on your 1099 for 2015? It seems like for smaller stakes guys it could end up the worst of both worlds, having to pay taxes on a $16000 ticket and then min cashing at the event in the new year ending up with a $14000 loss on the value of the ticket that you’re never going to be able to deduct from 2016 winnings.

  • PJGuin23

    DFS Tax Guru

    @einars said...

    i dont think this is correct (tho pj knows his stuff, so i could be wrong), otherwise you could defer your taxes like a mofo lol.

    last year i had a contest that was on NYE and was settled (barely) on new years day and it was included in my 2014 income.

    there was a much longer thread about this a bit ago, ill see if i can find it.

    mostly on pg 2 https://rotogrinders.com/threads/dfs-and-taxes-1001040?page=1

    I guess that is counted as a “session” so it would be 2016 when it settles. It depends on how the End Balance is counted which should be as of 12/31/15 1159p. How the sites figure it is beyond me. Next year Beg balance should be 1/1/16 midnight and if it settles overnight the entire thing should count for 2016.

    Best thing would be to keep track and see if they count it for 2015 or 2016 to avoid double counting.

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