Tax Question Money Trading

[LadyHoldem]

Hey Guys

I have a question .. or two

So I'm filing my taxes.. How do the cash swaps effect my taxes? When I sell my poker chips for pal chips for instance.. and then the same goes for when I do a friend a favor that didn't have a paypal card.. they sent cash to me, and I withdrew it and gave it to them.

[kef272]

I don't think I'd include personal cash swaps on my business taxes. It's neither a profit or a loss. If you didn't have an affiliate business would you claim this?

BTW - I have no idea about taxes I'm using Turbotax Home & Business.

I just thought you might like some useless input.

[LadyHoldem]

I'm using Turbo Tax too

[PokerDude]

Hey Guys

I have a question .. or two

So I'm filing my taxes.. How do the cash swaps effect my taxes? When I sell my poker chips for pal chips for instance.. and then the same goes for when I do a friend a favor that didn't have a paypal card.. they sent cash to me, and I withdrew it and gave it to them.

I 3, use Turbo Tax.

Why would you even want to open up such a hornet's nest with the IRS ? I believe in being totally transparent and showing all my earnings to the IRS, but a cash swap, on the receiving end, is akin to your Mom giving you a check for your birthday. Do you declare that ?

I don't know of anything in the IRS code, that forces you to declare an even transaction like that. After all, you are buying something, and getting something in return. Net zero, no taxes due.

[Adam_1]

I would stay away from declaring this just as PokerDude said why stir up that hornets nest. It would send off money laundering alarm bells then they will start digging into everything.

Pay your taxes on your revenue, for services or goods sold.

[LadyHoldem]

Well the reason is actually to avoid the hornets nest. The payments were actually made into the poker rooms, and then i sell the chips for p@yp@l so I can spend them.. anyway. TMI

I counted every dollar earned from the purchase of every article i ever wrote .

[ai2490]

you dont make or lose any money from this so it has no effect on your profit/loss and therefore is irrelevant for tax purposes

[pokerprop]

First of all: as an American citizen highly concerned with preventing further terrorist attacks as well as preventing our children from the dangers associated with illegal online gambling, drugs and alcohol I'd like to thank each of you who have voiced your support advocating fair tax reporting. I assure you your contributions made this year will not go to waste and we might soon have a cure for both cancer and for those who refuse to wear seat belts.

While I do not wish to derail the productive spirit of this thread, as I realize most here have wonderful intentions during tax season, I would like to point out some potentially poor advice has been given in this thread.

To the best of my knowledge, and I suggest consulting with a IRS certified volunteer to confirm, there is a form for this and technically you are supposed to report payments accepted on others behalf.

I hope this doesn't sour anyone's day by creating too much additional research requirements. If it does, I encourage you to keep in the spirit of tax season which is what this great nation, the land of the free, thrives on. Our progress in the past year keeping the economy strong and the unemployment rates low would not have been possible had it not been for people like yourselves.

Your Brother in Freedom,

PokerProp
An American Citizen

[LadyHoldem]

Man Prop! lol, sounds a lot like a nice 1040x to me :/