Quit While You're Ahead... Revisited

[RoeIncarnate]

Can I use that argument with the IRS when I file my 2015 taxes?

Move to Canada, we don't tax winnings.

[Alan Mendelson]

Move to Canada, we don't tax winnings.

Then why do so many Canadians play in the US and get screwed by our IRS?

[RS__]

Then why do so many Canadians play in the US and get screwed by our IRS?

Because the U.S. does tax winnings? Yes, stupid questions deserve stupid answers.

[Alan Mendelson]

Because the U.S. does tax winnings? Yes, stupid questions deserve stupid answers.

Stupid answer to the wrong question.

The question is: why do Canadians bother to gamble in the US where they are taxed instead of playing just in Canada where they are not taxed?

RS___ you are striking out, buddy. You blew it when you said you were a professional player but didn't know about filing your taxes with a Schedule C, and then you manufactured a BS post about getting $1,000 of free play and a big resort credit -- and you're a Vegas dealer, too?

[Rob.Singer]

Obvious called 3rd strike on this phony Alan. He never counted on there being people with actual experience where he decided to tell his BS. He was hoping that people with slide rules and books on theory showed up instead.

[Alan Mendelson]

Maybe he was so quick to jump on me he forgot to read the question?

[Rob.Singer]

Methinks that he was busy trying to make up another story about this or that.

[RS__]

Alan asks a stupid question then goes into attack mode.

I don't know why Canadians gamble in the US. I've never been to Canada on purpose. Once when I was in MT on vacation with family and my dad made the wrong turn. Don't know about the casinos up there, but I haven't heard of many, other than Caesars Windsor.

[RoeIncarnate]

Then why do so many Canadians play in the US and get screwed by our IRS?

Vegas is the best place to gamble.

Also if you win enough money there is a tax treaty to get much of the tax back.

[Alan Mendelson]

Thanks Roeincarnate for answering the question.

I didnt know about the treaty. I only know when I talk to Canadians in Vegas they all complain about the big tax bite that the casinos take out of their handpays because they are Canadians.

[RoeIncarnate]

Thanks Roeincarnate for answering the question.

I didnt know about the treaty. I only know when I talk to Canadians in Vegas they all complain about the big tax bite that the casinos take out of their handpays because they are Canadians.

I've never won enough to hit that. Low roller.

I think the treaty covers all income tax stuff. Employment income, stocks and securities, rental income, and gambling. As a Canadian if you have income in both countries you have to file taxes in both countries. The tax treaty then makes it such that you only pay tax once on any income at the highest rate from the two countries. Since Canada has high taxes on most things, most Canadians only owe money to Canada. Gambling income can be the exception since we have 0 tax on it.

I think then you deduct what paid in total income taxes to Canada from what you owe Uncle Sam and pay the remaining.

This is my rough understanding since I've never had to do it myself but I know a few people that have to do it each year since they have had employment income on both sides.

There are signs in the airport for accountant/lawyers that will help recoup the money for you. I'm sure they take more than their fair share though.

[Alan Mendelson]

Roe thanks for the info.

I don't want to be the one to defend accountant and lawyer fees but I am going to guess they are negotiable and you can shop for the best professional.

Recently at Bellagio where there is a large number of foreign players I met some Canadians who would play only $2 video poker so they would avoid tax problems except when they hit a royal.