Private Bets - the law? NE1?

Reply #9

LANTERN — Sun, 13 Feb 2005 01:14:43 GMT

Very nice Win D.

Reply #8

WIN D — Sat, 12 Feb 2005 21:20:44 GMT

quote...... I was wondering if it was illegal besides tax liabilities if it were legal. I'd hate to have to deal with a bunch of forms and legal mess after finding out this and that should have been done beforehand.http://www.century21cayman.com/files/osc/cii/ptax_free.htm

Reply #7

waynr — Sat, 12 Feb 2005 19:20:41 GMT

The question was hypothetical and only pertained to private informal wagers between people who may not actually know each other, but trust enough for small bets. I was wondering if it was illegal besides tax liabilities if it were legal. I'd hate to have to deal with a bunch of forms and legal mess after finding out this and that should have been done beforehand. I suppose the amount would be the biggest factor. Thanks for the replies.

Reply #6

Todd — Sat, 12 Feb 2005 17:52:48 GMT

SirMetro:Keep in mind I'm talking about a private thing between two people who know each other, and who are not going to be writing their private bets into their tax returns. Of course if it were a business transaction you would definitely report it accurrately on your return. The relatively small amount paid now is nothing compared to what would happen if they caught you later. Again, I am talking about a private matter. Also, the original question was about the legality of paying each other... [ More ]

Reply #5

SirMetro — Sat, 12 Feb 2005 17:40:59 GMT

PS: If for whatever reason the other Party is writing the Loss off, IRS is definitely going to be watching for where it went.Sir MetroThe last time I assumed no one knew, it turned out that the only one who did not know was me.

Reply #4

SirMetro — Sat, 12 Feb 2005 17:38:53 GMT

As I understand how Taxible Income is defined, winnings, less any applicable expense is treated much like Stock transactions, basically, the net profit after all applicable costs are deducted is considered taxible. Commonly, the dollar value is set around $599 before IRS will take notice. If you truly have a tax issue concern, I suggest you go to the IRS web site and look up what the current rules are regarding gambling wins. You may also want to review the current text for your state. On averag... [ More ]

Reply #3

Todd — Fri, 11 Feb 2005 16:01:49 GMT

I don't think you need to give PayPal your SSN, so the IRS does not know about it.

Reply #2

waynr — Fri, 11 Feb 2005 14:46:06 GMT

Quote: Originally posted by Todd on February 11, 2005 If there was no record of the bet, who would know that the PayPal money was not just a gift?True enough for a one time or every blue moon bet, but what about an ongoing thing where those transactions start piling up in the history folder. Come tax time what to do? Will the IRS believe they are all gifts if audited

Reply #1

Todd — Fri, 11 Feb 2005 13:54:44 GMT

If there was no record of the bet, who would know that the PayPal money was not just a gift

Private Bets - the law? NE1?

waynr — Fri, 11 Feb 2005 13:52:18 GMT

If two or more individuals made a private informal bet online and the winning person was paid through Paypal, what would the legal status be of those transactions? Anyone know the law, if or how it applies to bets between individuals? Supposedly private bets , but hopefully by now most everyone online should know better IMO.