Am I right to expect a lot more folks attempting to file as poker pros in the 2018 tax year? A sole proprietor will get a 20% deduction on his/her pass through income. US based players will be much better off winning WSOP main as a "pro" in 2018 than as an amateur
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Replying to @hpoker
It's hard to say until tax reform is finalized. Lot of restrictions on qualifying for pass-through treatment, and caps on amounts that qualify for lower rate.
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There's also the issue of wages v. profit. Have to allocate certain % to wages, which are subject to higher individual rates and payroll tax.
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Replying to @hpoker
Short answer is "no". Long answer is "it's complicated and depends on the final bill". See here for some background: http://www.wealthmanagement.com/high-net-worth/tax-reform-proposals-pass-through-entities …
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In a sense, yes it's all "profit". But what matters is how much is deemed active or passive income, and whether it's taxed at individual or corporate rate.
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The tax reform bills are being written to try to prevent people from gaming the pass-through provision (see restrictions around "service" professions).
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How would this impact a poker pro? I don't know! Once we see the final bill, we'll know more. But there will be a lot of money paid to tax attorneys next year to figure it out.
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