Tax Issues Related To Poker Tournaments

Many times you will hear of people who have sold orthe instance where the player has sold part of his
exchanged a portion of their tournament action to helpaction, that player can provide the casino with Form
cover the costs of playing in tournaments. In other5754. The casino is then required to issue a W-2G to
words, this player has agreed in advance to split hiseach person listed on the form.
winnings with another person or a group of people.If you plan to sell a portion of your action to another
Depending on the size of the tournament, this has theperson or group of people, it's important to let
potential to get the players and those people whoeverybody know ahead of time that they will be
have purchased a share in the players action in to aresponsible for their share of the taxes. Friendships
potentially difficult tax situation.and relationships can be damaged when large sums of
It is the casino's responsibility to report the winningmoney are at stake. Diffuse the situation before it
player's monetary win to the IRS. The casino wouldhappens by being prepared.
normally issue each winning player a W-2G form forThis information is not to be used as tax advise. For all
the full amount of their win. The winning player wouldtax related questions, please seek the assistance of a
then add this to their tax return the following April. Intrained tax professional.