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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Replying to @Grange95
This is a decent description (replace 23% w 20% as that was amended in the deal yesterday). My amateur take is that at the very least you'd get this 20% deduction up to 250k (or up to 500k married filing jointly) if you legitimately file profit on sched C https://evergreensmallbusiness.com/sec-199a-qualified-business-income-deduction/ …
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Replying to @hpoker
I think you're right. But here's an interesting limitation that arguably hits poker pros:pic.twitter.com/riGZzl0uVS
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Replying to @Grange95
But that's above the 250k/500k thresholdpic.twitter.com/hhL7qgMQci
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Agreed. But it would likely hit many poker pros with large tourney wins. Which brings us back to your original tweet!
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Replying to @hpoker
Winning the WSOP and having to pay a tax attorney to figure this all out is not the worst problem to have.pic.twitter.com/sIjKHGNlBu
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End of conversation
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