November 9, 2011 in Featured by Joe "lazydog" Abfalter
WSOP and Taxes
Here is an article I found on Twitter that I thought to be pretty interesting. It’s about the WSOP November 9 and the taxes they have to pay. The author ask the question who is the real winner of the WSOP and when you think about it, it is a very good question. I don’t know the number, but I remember reading that when Joe Cada won the WSOP and after the taxes were all paid he was not the big winner of the money. Take a moment and check the article out, I added a excerpt below to give you a feel for the article and you decide if you want to continue reading it….
Nine individuals came to Las Vegas this past weekend to compete for the championship at the World Series of Poker. Who would be the lucky winner? And who really got to keep the money?
This year’s World Series of Poker concluded late last night at the Rio Hotel and Casino in Las Vegas. The winner of the main event won $8,715,638 but would he actually end up with all that money?
This year we have the first winner ever from Germany. Congratulation to Pius Heinz of Cologne.
First, Mr. Heinz benefits from the US-Germany Tax Treaty. Under that Tax Treaty, gambling income earned in the US is exempt from US taxation. (Without a tax treaty, he’d lose 30% of his winnings to the IRS.) Next, Germany considers gambling to be a use of after-tax (earned) money so for gamblers it’s tax free. (German casinos, however, are heavily taxed: They pay die Spielbankabgabe and other taxes to the German states.) Thus, Mr. Heinz gets to keep all $8,715,638 of his winnings.
I live in Mason, MI (small town just south of Lansing) with my wife and 2 of my 3 kids. Working on getting my poker game back
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