If you’re a professional gambler then you are classified to be in trade or business man or woman. The reason is you engage in it strictly for gain and profit as such it is classified as a business.

Gambling is popular today more than ever and it’s important to be well informed as you go about it.

To determine if your gambling activity is for gain and profit there are several facts and circumstances that are closely taken into consideration.

Several factors are considered and none of the factors is a standalone factor. Here are the major factors that are considered:

• The manner in which you as a gambler carry out the activity: If it’s certified that you conduct your gambling activities in a businesslike manner, that is you maintain complete accounting book and a gambling log or diary. This is a clear indication that you’re in it for profit making and thereby it’s a business and must be taxed as a business.
• Are you an expert gambler with a pro advisor?: If you have taken the time and effort to prepare like prepare pros do with mightytips.com for gambling and even hire professionals as advisors then it’s a clear indication that you want to make gain and profit. So you’re in business and should be taxed accordingly.
• The time and effort you put into the activity are indicative if you’re in for gain and profit. If it’s proven that you put in so much time and energy in the activities of gambling then it shows the intention to make a profit.
• If you’re expecting appreciation in the value of the assets you use in the activity: If these can be ascertained then a logical conclusion can be reached that one is in it for profit.
• Your history of income and loses: A reasonable history of long loses is seen as the player not in it for profit. And a long history of reasonable profit making is indicative of a profit making motive.
• Your financial status is another consideration: If it is seen that a substantial amount of your income comes from other sources outside gambling then it’s believed you’re not in it for profit but if the reverse is the case you are seen to be in it for the profit. It means gambling is your primary source of livelihood.
• The elements of personal pleasure or recreation: Generally gambling at a casino is seen as an amusement or recreation so if a player regularly shows us without friends or family members it could be he came to do business and not to pass time in recreation.

If you’re seen to engage in casino gambling as a business you will be taxed as a businessman. You need to know how it’s done and how to go about it.

Understanding Tax Issues as a Pro Gambler

If you’re a professional gambler then you are classified to be in trade or business man or woman. The reason is you engage in it strictly for gain and profit as such it is classified as a business.

Gambling is popular today more than ever and it’s important to be well informed as you go about it.

To determine if your gambling activity is for gain and profit there are several facts and circumstances that are closely taken into consideration.

Several factors are considered and none of the factors is a standalone factor. Here are the major factors that are considered:

• The manner in which you as a gambler carry out the activity: If it’s certified that you conduct your gambling activities in a businesslike manner, that is you maintain complete accounting book and a gambling log or diary. This is a clear indication that you’re in it for profit making and thereby it’s a business and must be taxed as a business.
• Are you an expert gambler with a pro advisor?: If you have taken the time and effort to prepare like prepare pros do with mightytips.com for gambling and even hire professionals as advisors then it’s a clear indication that you want to make gain and profit. So you’re in business and should be taxed accordingly.
• The time and effort you put into the activity are indicative if you’re in for gain and profit. If it’s proven that you put in so much time and energy in the activities of gambling then it shows the intention to make a profit.
• If you’re expecting appreciation in the value of the assets you use in the activity: If these can be ascertained then a logical conclusion can be reached that one is in it for profit.
• Your history of income and loses: A reasonable history of long loses is seen as the player not in it for profit. And a long history of reasonable profit making is indicative of a profit making motive.
• Your financial status is another consideration: If it is seen that a substantial amount of your income comes from other sources outside gambling then it’s believed you’re not in it for profit but if the reverse is the case you are seen to be in it for the profit. It means gambling is your primary source of livelihood.
• The elements of personal pleasure or recreation: Generally gambling at a casino is seen as an amusement or recreation so if a player regularly shows us without friends or family members it could be he came to do business and not to pass time in recreation.

If you’re seen to engage in casino gambling as a business you will be taxed as a businessman. You need to know how it’s done and how to go about it.