BANKROLL FORUM

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  • PJGuin23

    DFS Tax Guru

    As some of you may or may not know, I am pleased to announce that I have an exclusive partnership with Rotogrinders to provide tax preparation and consulting services for the RG community. Good news is the 1099-MISC Forms are beginning to trickle in and I’m gladly accepting new clients. I am a CPA based out of suburban Philadelphia with a tax practice focusing on DFS, poker players and Horse Racing. I have years experience with the latter and that’s where I received most of my Hobby vs. Business Income experience. I can work with anyone throughout the United States and have very likely prepared your State and/or Local Tax returns.

    You can also ask basic questions on this thread I would be happy to answer. To remind you, more specific questions to your overall income and expenses situation may require a professional opinion from a tax preparer or CPA. Again, you can contact me for those services if you wish. If you currently have an accountant (common for Grinders with small businesses), I would be happy to corroborate with them to prepare an accurate return for you for DFS purposes.

    There are no significant changes for this season compared to last for DFS purposes. Buzzing around the new Administration is the possibility of major tax reform with potentially significant changes in tax rates, brackets and deductions. They have no effect for your 2016 tax return and not likely for your 2017 return (rarely are retroactive) but I have been monitoring the situation closely. As we have seen with legislation regarding DFS, there are multiple competing interests at work and “tax reform” could be minimal, if anything. I would wait and see until the law is codified and signed. If anything changes, your situation could vary greatly.

    My website is www.dailyfantasytaxes.com. You can contact me through there where I have a contact form and my toll free number or PM me on here

    PJGuin23’s Disclaimer: I am a Certified Public Accountant licensed by the Commonwealth of Pennsylvania. Any information provided is for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant, CPA, lawyer or other competent financial professional. Presentation of information I provide on RotoGrinders does not constitute an accountant-client relationship. Such relationship can be established by engaging in professional services privately with PJGuin23. RotoGrinders readers are advised not to act upon information I provide without seeking the service of a professional accountant well versed in your particular situation.

  • jdelsas

    I am classifying as a Hobby expense this year, around $16K profit on DK with a few smaller losses on some other sites. Am I correct in writing off all my miscellaneous expenses, up to the hobby income amount, on Schedule A?

    I think I did this last year with no issues, but this year I have a lot more $$ in (legitimate) write-offs and don’t want to set off any red flags.

  • phillygamecox

    Greatly apologize if this has been answered somewhere else, but has anyone received their Fanduel tax forms? I received mine from DK a few weeks back, but nothing yet from FD. I did fill out the request on their site a month or two ago, so Any help would be appreciated – thanks.

  • Stewburtx8

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    @phillygamecox said...

    Greatly apologize if this has been answered somewhere else, but has anyone received their Fanduel tax forms? I received mine from DK a few weeks back, but nothing yet from FD. Any help would be appreciated, and thanks…

    FanDuel sent them via email and snail mail several weeks ago. I would contact their support if you expected to receive one and have not.

  • phillygamecox

    @Stewburtx8 said...

    FanDuel sent them via email and snail mail several weeks ago. I would contact their support if you expected to receive one and have not.

    Gotcha—will do. I know in the past they were delayed, but guess there is an issue with mine being sent this go around. Will investigate directly with them, and thanks for the quick reply.

  • PJGuin23

    DFS Tax Guru

    @jdelsas said...

    I am classifying as a Hobby expense this year, around $16K profit on DK with a few smaller losses on some other sites. Am I correct in writing off all my miscellaneous expenses, up to the hobby income amount, on Schedule A?

    I think I did this last year with no issues, but this year I have a lot more $$ in (legitimate) write-offs and don’t want to set off any red flags.

    Deductions subject to 2% AGI floor.

  • MrSnuffleupagus

    Wring thread

  • jdelsas

    @PJGuin23 said...

    Deductions subject to 2% AGI floor.

    If I can prove a profit over the last 3-4 years, does it make more sense to go the Schedule C route? My expense deductions are well over the 2% AGI floor currently.

  • CAMFAN11

    So would it be OK if someone just uses the firm that dk sends and file that amount? I’m stupid when it comes to taxes. My form said 400 and that’s what I reported as income.

  • PJGuin23

    DFS Tax Guru

    @jdelsas said...

    If I can prove a profit over the last 3-4 years, does it make more sense to go the Schedule C route? My expense deductions are well over the 2% AGI floor currently.

    That’s a strong factor to be a Schedule C. I’d also have to look at amounts, activity, etc.

  • jordanh415

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    Hey PJ, I was looking for the DFS Tax article you wrote not too long ago here on rg, but I am having trouble finding it. Can you put up a link to that DFS Tax article you wrote recently for RG?

    Thanks, Jordan

  • MrNastyTime91

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    Good Evening,
    I received a 1099 MISC from draftkings. The amount is $24,175.81. I only withdrew one time throughout the year and it was for $9999.99. Since that withdraw I lost a good portion of the money in my account. So should I only pay taxes on the money I withdrew? Any kind of help would be greatly appreciated!
    Thanks!

  • PJGuin23

    DFS Tax Guru

    @MrNastyTime91 said...

    Good Evening,
    I received a 1099 MISC from draftkings. The amount is $24,175.81. I only withdrew one time throughout the year and it was for $9999.99. Since that withdraw I lost a good portion of the money in my account. So should I only pay taxes on the money I withdrew? Any kind of help would be greatly appreciated!
    Thanks!

    On the 1099-MISC amount. Not what you withdraw.

  • PJGuin23

    DFS Tax Guru

    Here’s my updated article:

    https://rotogrinders.com/articles/daily-fantasy-sports-tax-reporting-1726331

  • donkeyballz

    I have a few basic questions since you have both poker and DFS experience.

    1) If you are a professional at both do you file two separate schedule c’s or just one?

    2) Would a poker player or DFS player file their schedule c’s as “gambling industries” or is there another more fitting description of the business for schedule c purposes?

  • theoddsmaker

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    Ok starting to rapidly approach the dreaded tax day and I’ve yet to hear any real information on what we should do about Aces and Feud winnings. I honestly have NO CLUE on how much exactly I won on those sites combined and NO 1099 coming and NO site that exists anymore to do the old export csv of history to calculate. I mean I’m talking about a range of say $50k-$120k combined on both sites. Not exactly a tight enough range to truly “guess” for tax purposes.

    Oh and did I mention Aces ended up with around $30k when they decided to file Chapter 7. So far the only advice I’ve heard is just to “guess”? Sounds like tax season will be like setting a PGA tourney team, can’t wait!

  • PJGuin23

    DFS Tax Guru

    @donkeyballz said...

    I have a few basic questions since you have both poker and DFS experience.

    1) If you are a professional at both do you file two separate schedule c’s or just one?

    2) Would a poker player or DFS player file their schedule c’s as “gambling industries” or is there another more fitting description of the business for schedule c purposes?

    You could file under one. There are ways. However, I wouldn’t include slots or lottery in that. There are more fitting descriptions than “gambling industries” and I never use them.

  • donkeyballz

    Yea I thought the guy that did my taxes was making a mistake labeling it “gambling industries”, but I couldn’t find a better label myself.

    What is a better way to label it?

  • PJGuin23

    DFS Tax Guru

    @donkeyballz said...

    Yea I thought the guy that did my taxes was making a mistake labeling it “gambling industries”, but I couldn’t find a better label myself.

    What is a better way to label it?

    You have a few options:

    - Daily Fantasy Sports – Statistical Analysis – Fantasy Sports

  • JMason925

    Are any Canadians able to help with the W-8 BEN? Totally lost.

  • TreeProtector

    I am also lost and could use some direction.

  • wiggy0302

    I live in Massachusetts and am pretty sure I received a tax form for winning over $600 in a single contest on DraftKings, do the sites send out 1099s or another form during the year or are we only obligated to pay taxes if we receive a 1099 based on annual winnings…I have contacted the site and they emailed me that I did not exceed $600 of winnings in 2016, therefore would not receive a 1099.

  • PJGuin23

    DFS Tax Guru

    @wiggy0302 said...

    I live in Massachusetts and am pretty sure I received a tax form for winning over $600 in a single contest on DraftKings, do the sites send out 1099s or another form during the year or are we only obligated to pay taxes if we receive a 1099 based on annual winnings…I have contacted the site and they emailed me that I did not exceed $600 of winnings in 2016, therefore would not receive a 1099.

    Obligated to pay taxes on even $1 in net winnings. That said the IRS will not receive a 1099-MISC.

  • golferdude31

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    Hi PJ,

    I have a couple of questions if you are able to answer on this thread. Last year, I had 1099’s from various fantasy sites totaling $26k, however, due to how the sites reported these amounts differently and also because of a possible mistake on my own reporting, I only declared $7,700 on Line 1 and Line 7 under Income. I used a schedule C to report. One of the reasons for this large difference was because a couple of sites were reporting total winnings as the 1099 income without subtracting the entry fees first.

    That being said, I also made a mistake on my reporting by essentially trying to report my net income as my withdrawals minus deposits, which logically would make sense if you consider your account as “working capital”, but I know that isn’t how the IRS views it. That being said, I also had losses from other fantasy sites that did not issue 1099’s since I had net losses on those sites.

    Not surprising, I just received a letter from the IRS saying that I still owe near $5,000 from last year’s taxes, since I reported $7,700 instead of the $26k, however, this is also wrong because my net income was no where near the $26k. It should be much closer to the $7,700 as I reported.

    That being said, I just want to get some clarification of how/where I am supposed to report losses from fantasy sports on my tax return. Like what line is it supposed to fall under? Also, is there any way that I should specifically report the site discrepancies as far as how they were reporting income? And finally, what is the best way to be able to figure your losses from each site? I was attempting to do it based on my deposits into the site, but that isn’t entirely accurate obviously.

    Any help would be much appreciated!

  • PJGuin23

    DFS Tax Guru

    @golferdude31 said...

    Hi PJ,

    I have a couple of questions if you are able to answer on this thread. Last year, I had 1099’s from various fantasy sites totaling $26k, however, due to how the sites reported these amounts differently and also because of a possible mistake on my own reporting, I only declared $7,700 on Line 1 and Line 7 under Income. I used a schedule C to report. One of the reasons for this large difference was because a couple of sites were reporting total winnings as the 1099 income without subtracting the entry fees first.

    That being said, I also made a mistake on my reporting by essentially trying to report my net income as my withdrawals minus deposits, which logically would make sense if you consider your account as “working capital”, but I know that isn’t how the IRS views it. That being said, I also had losses from other fantasy sites that did not issue 1099’s since I had net losses on those sites.

    Not surprising, I just received a letter from the IRS saying that I still owe near $5,000 from last year’s taxes, since I reported $7,700 instead of the $26k, however, this is also wrong because my net income was no where near the $26k. It should be much closer to the $7,700 as I reported.

    That being said, I just want to get some clarification of how/where I am supposed to report losses from fantasy sports on my tax return. Like what line is it supposed to fall under? Also, is there any way that I should specifically report the site discrepancies as far as how they were reporting income? And finally, what is the best way to be able to figure your losses from each site? I was attempting to do it based on my deposits into the site, but that isn’t entirely accurate obviously.

    Any help would be much appreciated!

    You need to report the 1099-MISC amount as Other Income or a Schedule C or at least that amount. Now losses can be reported as Miscellaneous Deductions Subject to 2% AGI floor or on Schedule C as a separately stated item. Let me know if you need any specific assistance.

  • golferdude31

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    @PJGuin23 said...

    You need to report the 1099-MISC amount as Other Income or a Schedule C or at least that amount. Now losses can be reported as Miscellaneous Deductions Subject to 2% AGI floor or on Schedule C as a separately stated item. Let me know if you need any specific assistance.

    Yeah, I think I could use a little more help on this. I sent you a direct message!

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