Originally posted by King of Queens:
The "problem" I was referring to was Krause's little P&L issue. next year, KP needs to send out the checks as soon as the contest is deemed official. some people have to worry about splitting between partners, allowing time for the checks to clear, and paying estimated taxes...
[ January 10, 2005, 10:36 PM: Message edited by: Gordon Gekko ]
Tax Problem
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Gordon Gekko
- Posts: 7222
- Joined: Wed Apr 07, 2004 6:00 pm
Tax Problem
Is my "weekend warrior" prep better than your prep?
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Greg Ambrosius
- Posts: 36413
- Joined: Tue Apr 06, 2004 6:00 pm
Tax Problem
I'll do one better than that, Gordon. This year we held up the 32 league checks until the end of the season so that we could add $100,000 to someone like you. Next year I will request that all $5,000 checks and the other league checks go out immediately after Week 13. Then we'll add other checks to be sent out after Week 16 for the overall prize winners. That should eliminate the confusion.
I tried to be efficient this year, but next year I will be more timely and just send out extra checks to the overall winners later.
I tried to be efficient this year, but next year I will be more timely and just send out extra checks to the overall winners later.
Founder, National Fantasy Football Championship & National Fantasy Baseball Championship
Twitter: @GregAmbrosius
Twitter: @GregAmbrosius
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CC's Desperados
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- Joined: Mon Oct 18, 2004 6:00 pm
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Tax Problem
[QUOTE]Originally posted by Dyv:
[QB] It's going to be a can of worms regardless... I'm trying to figure out how I can rationalize to the IRS the fact I won the money in 2004, but got it in 2005, but wish to deduct my 2004 expenses... or if I should just deduct my 2005 expenses from it hoping they don't inquire as to whether those expenses were reasonably for the earnings that I received in 2005.
And then what if I earn more winnings in 2005 and lose my 2004 deductions when I could have at least argued them as constructive receipt for 2004 ?
Greg - if there's a constructive comment here it would be that it would be easier for most to figure out a way to GUARANTEE the checks will be postmarked 2004 if earned in 2004. The ability to offset expenses is quite important... and this puts us in some shade of gray that it probably doesn't need to...
Dave,
I would think in your case you would want the check in 2005. It would be much easier to come up with 5000 in expenses than 10000. In 2005, you will have earned 5000 already, but you will have wiped that out that with the 5000 in the ultimate entry fee. If you win more money in baseball, just pay for 2006 entry in 2005 to get the deduction. If don't win any money, you might want to carry the football entry on your card until 2006. By doing this, you have not payed for it until the next year. I think in this fantasy game it is going to be tricky trying to get the most expenses when you earn the money. It not so much the federal taxes, but the 15% self-employment taxes.
[QB] It's going to be a can of worms regardless... I'm trying to figure out how I can rationalize to the IRS the fact I won the money in 2004, but got it in 2005, but wish to deduct my 2004 expenses... or if I should just deduct my 2005 expenses from it hoping they don't inquire as to whether those expenses were reasonably for the earnings that I received in 2005.
And then what if I earn more winnings in 2005 and lose my 2004 deductions when I could have at least argued them as constructive receipt for 2004 ?
Greg - if there's a constructive comment here it would be that it would be easier for most to figure out a way to GUARANTEE the checks will be postmarked 2004 if earned in 2004. The ability to offset expenses is quite important... and this puts us in some shade of gray that it probably doesn't need to...
Dave,
I would think in your case you would want the check in 2005. It would be much easier to come up with 5000 in expenses than 10000. In 2005, you will have earned 5000 already, but you will have wiped that out that with the 5000 in the ultimate entry fee. If you win more money in baseball, just pay for 2006 entry in 2005 to get the deduction. If don't win any money, you might want to carry the football entry on your card until 2006. By doing this, you have not payed for it until the next year. I think in this fantasy game it is going to be tricky trying to get the most expenses when you earn the money. It not so much the federal taxes, but the 15% self-employment taxes.
Tax Problem
Originally posted by CC's Desperados:
Dave,
I would think in your case you would want the check in 2005. It would be much easier to come up with 5000 in expenses than 10000. In 2005, you will have earned 5000 already, but you will have wiped that out that with the 5000 in the ultimate entry fee. If you win more money in baseball, just pay for 2006 entry in 2005 to get the deduction. If don't win any money, you might want to carry the football entry on your card until 2006. By doing this, you have not payed for it until the next year. I think in this fantasy game it is going to be tricky trying to get the most expenses when you earn the money. It not so much the federal taxes, but the 15% self-employment taxes. Well, it brings to mind the thought that I have no problem paying the due taxes when I've earned the money.
Not a bad fantasy games pull this year for you either, eh!?!!!
If I declare myself a 'professional gambler' then I can probably just net out the year's profit and loss from various ventures. BUT, I'm also a licensed investment advisor and I have to report my outside income. I'd much rather list 'prize winnings' than 'professional gambler' for my broker/dealer's review.
If I don't declare professional gambler it's hard to argue that the check I received in January should be offset by the check I wrote in March... (is it reasonable to claim the expense is 'related' to the income at that point? I don't see how...)
It may work out just fine, but I hate the IRS looking at me and I'm optimistic I may have some winnings in 2005. A third place finish or whatever!
All I ask in each contest is that I'm competitive...
Thanks for the thoughts and advice - I'm going to play with the numbers a bit and see what I can come up with.
Dave
Dave,
I would think in your case you would want the check in 2005. It would be much easier to come up with 5000 in expenses than 10000. In 2005, you will have earned 5000 already, but you will have wiped that out that with the 5000 in the ultimate entry fee. If you win more money in baseball, just pay for 2006 entry in 2005 to get the deduction. If don't win any money, you might want to carry the football entry on your card until 2006. By doing this, you have not payed for it until the next year. I think in this fantasy game it is going to be tricky trying to get the most expenses when you earn the money. It not so much the federal taxes, but the 15% self-employment taxes. Well, it brings to mind the thought that I have no problem paying the due taxes when I've earned the money.
Not a bad fantasy games pull this year for you either, eh!?!!!
If I declare myself a 'professional gambler' then I can probably just net out the year's profit and loss from various ventures. BUT, I'm also a licensed investment advisor and I have to report my outside income. I'd much rather list 'prize winnings' than 'professional gambler' for my broker/dealer's review.
If I don't declare professional gambler it's hard to argue that the check I received in January should be offset by the check I wrote in March... (is it reasonable to claim the expense is 'related' to the income at that point? I don't see how...)
It may work out just fine, but I hate the IRS looking at me and I'm optimistic I may have some winnings in 2005. A third place finish or whatever!
All I ask in each contest is that I'm competitive...
Thanks for the thoughts and advice - I'm going to play with the numbers a bit and see what I can come up with.
Dave
The Wonderful thing about Dyv's is I'm the only one!