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 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.

  • PJGuin23

    DFS Tax Guru

    @sports1 said...

    Hello,can you please provide me where to go to view the basics of what you can write off in taxes and what percentage of your entry fee can be written off ?
    If I got a tax form for $6500 but i deposited $3700 that year, what is that $3700 considered. a write off?

    i truly appreciate your help!

    The $6500 1099 MISC usually accounts for that. Unless the site used the Gross method of reporting, I would not deduct the entry fees.

  • sports1

    As a casual player without any other income last year , what is the basic formula to filing taxes? Thanks so much!

  • sports1

    thank you. So i understand claiming the $6500 via 1099 but then the $3700 i deposited does not get factored in?
    Where can I find what can be used as a write off? Tnanks!

  • turbocraft

    Hi PJ Glad I found your site.

    I had some questions about fantasy football winnings for the 2016 Tax Year. I played in 80+ Pro Leagues (Season long leagues) on Yahoo Fantasy and spent $5,000. I start my activity in March by watching fantasy football podcasts and articles, then I start buying into leagues when first avaiable in about July all the way thru Week 4-6 where entrys are no longer available.I made an income of $5,600 once the year ended thru paypal. So a profit of $600. What is the best way to go about filing taxes in this situation. If I file it as hobby income I have to report $5,600 as “other income” and I would have to pay 25% taxes on that income. I am filing with a standard deduction so I cannot file the $5,000 in entry fees as deductible expenses. For this reason I was considering filing as a sole proprietorship/business(Otherwise I would lose 25% of $5,600 and would actually be losing money….) I also never got a 1099 from PayPal or Yahoo. How should I go about doing this?

    I would like to speak with you over the phone or skype if you are available and would also want to know how much fee’s are to file with you or get tax advice.

    Thank you so much man.
    And I will be doing this in the future if I get this right and need the correct tax professional to help me!!!

  • HoldTheBaby

    Although I won $4k playing dfs last year, when I filled out my tax info it came back saying I only owed a negligible amount ~$100. I wonder if something was incorrect. I didn’t make any other money during the year if that makes a difference.

  • PJGuin23

    DFS Tax Guru

    @HoldTheBaby said...

    Although I won $4k playing dfs last year, when I filled out my tax info it came back saying I only owed a negligible amount ~$100. I wonder if something was incorrect. I didn’t make any other money during the year if that makes a difference.

    Standard deduction and maybe a credit? I don’t know if you did Schedule C or Line 21. Sounds like it COULD be right.

  • PJGuin23

    DFS Tax Guru

    6 more days! Don’t fret if you don’t have everything together for expenses. With some basic information, I can e-file an Extension!

  • markaw4

    • 727

      RG Overall Ranking

    • Ranked #51

      RG Tiered Ranking

    PJGuin23 could you provide a list of some common business expenses that could be deducted if you file as a Schedule C for your DFS profits?

  • precator

    Did any of you guys get a hold of fantasy aces on why they put it as box 7? Is that wrong?

  • precator

    If we are going to itemize some deductions, what are some legit ones we can put. Internet service, Subscription services like Rotogrinders or Fantasy Labs? Direct Tv? What kind of things are valid. And what should I list them as?

  • precator

    Also I am not trying to give myself a net loss, I just want to lower some of the taxes I pay on my profit.

  • precator

    Also if someone has the Fantasy Aces Federal Identification number can you private message me it? I lost the 1099 after i inputted the amount and now Turbo Tax is asking for it. I emailed Aces support but not sure if they still answer it..

  • darkknight24

    Do you have to claim your 1099 when you file state? I live in PA. I claimed it on my federal but am not sure if I have to claim it at the state level as well

  • PJGuin23

    DFS Tax Guru

    @darkknight24 said...

    Do you have to claim your 1099 when you file state? I live in PA. I claimed it on my federal but am not sure if I have to claim it at the state level as well

    For PA, yes earnings have to be claimed. Not only that be aware of Local Taxes (Berkheimer, Keystone Collections, Philadelphia, Jordan-Pittsburgh) as well. Philadelphia proper you would also need a School Income Tax (hobby) or BIRT/NPT (business) as well.

  • primeequine

    Okay, so, I’m late to the party, but I have a question…

    I have seen several comments on the tax threads about the difference between itemizing and standard deductions and how that can affect where you enter your 1099MISC information. I do itemize my deductions. DFS, in my case, is strictly a hobby. Where do I enter my 1099MISC? Is it on schedule A? form 1040?

    Thank you in advance for your reply

  • Hailskinz1

    Sent a private message

  • PJGuin23

    DFS Tax Guru

    @primeequine said...

    Okay, so, I’m late to the party, but I have a question…

    I have seen several comments on the tax threads about the difference between itemizing and standard deductions and how that can affect where you enter your 1099MISC information. I do itemize my deductions. DFS, in my case, is strictly a hobby. Where do I enter my 1099MISC? Is it on schedule A? form 1040?

    Thank you in advance for your reply

    Line 21 for the Income. Schedule A Miscellaneous Subject to 2% floor for deductions.

  • PJGuin23

    DFS Tax Guru

    I would like to thank the RotoGrinders for allowing me to advertise my services to the DFS Community for a 2nd year. This has been a successful tax season for me thanks to you guys. I have met an awesome group of clients thanks to this Forum and would be happy to have the Q & A again for a 3rd year in 2018.

    I work all year so if anyone still has to file, let me know. There’s only a few more hours for an Extension to be filed so my email is patrick.guinan@dailyfantasytaxes.com and yes, it can be e-filed before midnight tonight and I should be awake until around 10 ET.

  • olough

    If I deposited a total of $800 last year and at the end of the year had a $0 balance, am I allowed to claim any of that as a gambling loss? I won small amounts through out the year, but never had a withdrawal. Can I claim this or no?

  • Bevelgd

    PJ, sent a DM as well as an email.

  • lionssuck

    PJ just curious as to how Trump’s proposed tax changes would affect DFS. I saw that in his proposal gambling losses would be disallowed, could this possibly affect how Fanduel or Draftkings figures the 1099’s at the end of the year? In other words will they still be able show your net profit on there, or with this change are they going to have to show gross winnings….which would probably bring about the end of DFS as we know it. And also just curious if you saw anything in his proposal as to which year the changes would take affect?

  • thedude404

    • 2015 FanDuel NBA Playboy Mansion Finalist

    @lionssuck said...

    PJ just curious as to how Trump’s proposed tax changes would affect DFS. I saw that in his proposal gambling losses would be disallowed, could this possibly affect how Fanduel or Draftkings figures the 1099’s at the end of the year? In other words will they still be able show your net profit on there, or with this change are they going to have to show gross winnings….which would probably bring about the end of DFS as we know it. And also just curious if you saw anything in his proposal as to which year the changes would take affect?

    Here is my understanding and I may be completely 100% wrong on this. As far as I can tell, the IRS does not classify DFS winnings/losses under “gambling”. Gambling includes lotteries, raffles, poker, horse and dog racing, casino games, and sports betting. No mention of DFS. That is why you do not receive a W2G but you receive a 1099 MISC for your winnings. So based on that alone, it seems to me, any change to not being able to write off gambling losses would have no effect on DFS whatsoever. Now if the IRS would make some type of change and force DK/FD to issue out W2G’s instead of 1099 MISC’s, then you might have an issue. And it wouldnt just be with taxes. At that point, I’m sure several states would outright ban DFS, so taxes would be the least of your worries.

    But as with any presidential proposal, it has a long way to go. The first six months of any presidency is when a president has the best chance to get their agenda enacted. Judging by Trump’s inability to get anything of substance done in his first 100 days, I really wouldnt be too concerned at this point. If it does pass, it will be severely watered down ie there is ZERO chance corp tax rates will be reduced to 15%.

    Secondly, I’m sure Trumps buddies in Vegas ie Steve Wynn and Sheldon Adelson would not take to kindly to that gambling deduction being removed. While not a big money maker for the casino, it would absolutely decimate the pro poker player and pro sports bettor and take even more money offshore/underground.

    EDIT: The little I’ve just read about his “tax plan” the more you just have to laugh at it. Sorry if I get a little political here, but it is just an absolute joke. No mention of what income levels for his 3 tax brackets. On the one-time tax on overseas profits, the Treasury Secretary would only say it would be set at a “very competitive rate.” It’s basically a single page of bullet points of what Trump wants, with no mention how it would affect the deficit. Eliminating the federal estate tax only affects the top 1.8% wealthiest. It will be a sad day indeed if that is passed as it will even further concentrate the wealth in this country.

    Overall, I give this very little chance of being enacted. You have to remember back in 2013 Obama wanted to lower corp tax rates from 35% to 28% and a preferred rate of 25% to manufacturers. You cant tell me that Congress would pass some legislation almost exactly proposed by Obama but denied but since it’s proposed by a republican, it would pass at even more extreme cuts to the rate now can you? That would be complete absurdity……….

  • PJGuin23

    DFS Tax Guru

    Few things. thedude404, you are likely onto something when you said nothing will happen. I think there maybe some corporate breaks but that drastic an overhaul on Itemized Deductions for Individuals will cause backlash on so many levels.

    Now, from my understanding it will surely be more advantageous to file DFS activities as a business due to the 15% rate and ease of taking DFS related deductions on and business rather than the MISC Subject to 2%.

    Still too early with details, but other than the lower pass through rate for business, I don’t like this one bit. Living in suburban Philadelphia with fairly high State and Local taxes, I’m flat out infuriated. Upper middle income people in NY, NJ and no CA should be as well.

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