Tax Advisor

[JDMcNugent7]

Drove an hour with my dad to my brilliant tax advisor today, for the first time.

I sat down and talked to him and told him that I've made about 120k in poker so far this year. When he then said "But much did you lose?" I knew it was going to be a painful explanation. After telling him that the 120k was my net amount he seemed like he didn't beleive me and asked how I made so much at this age. I told him that it was all of it was from internet poker and just studying it and playing alot of hands, to which he said "wow, you on a hot streak?" I told him no, that it's actually pretty consistant money if you look at it over the long run. Apparently he still didn't understand and felt the need to tell me this longass Blackjack story about how he won 55 bets and then lost it all in the very same night, telling me that the same thing could happen to me at anytime. I told him I don't play blackjack because there's no edge in the game, to which he replied "well it's still crazy, it's like being hit by lightning winning that much money from poker at your age" - I'm not really sure wtf that means and I had to fake cough to keep myself from laughing.

Finally he stopped giving me awesome poker advice and I got to find out the annoying crap like why I can't qualify myself as a business and that really it's not that big of a plus to be qualified as a business anyway. Also that I was supposed to keep very detailed records of total money won, and then total money lost and subtract the two on the tax form. He said in some states you actually only get taxed on the total money won. So if you won $300,000 but lost $180,000 you would still be taxed on the $300,000. I'm thinking that would be pretty brutal so maybe there's a way around it. That's not the case in Missouri anyway, so whatever. I also found out some stuff about tax-differed annuities that you put your money in but can't touch until your 60, which I might put a decent sum of money into. The worst part was finding out I'm going to have to pay 29k on my so far 120k in winnings this year.

When we left he told me it's great I've kept such a level head through all this but that it's probably best if I just stop while I'm ahead.