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Gambling/Gift Tax Question

  • 13-09-2009 12:21pm
    #1
    Nolimits
    Registered Users, Registered Users 2 Posts: 1,681 ✭✭✭


    I first ask that you put aside any personal feelings as to whether this is viable or not.


    A friend and myself feel we could be able to make some pretty good money gambling on a well known gambling site that allows you to lay or back (not sure on the rules in regard to advertising but I guess most of you can figure it out) I already have an account in my name on it, after having checked with their customer service I see it's not possible to put a second name on the account. It is my understanding that winnings on gambling are tax free. I am worried however that when I go to give him his cut of the winnings that after €26,000 he would be liable to pay 20% as the account is in my name I would be technically giving him a gift even though he has put the same amount of money/effort into it. First of all is this correct? And second of all I read here http://www.revenue.ie/en/tax/cat/leaflets/cat1.html that gift tax isn't applicable for lottery and similar winnings. Is is just not applicable to the person who won it or is it also not applicable to the people the winner chooses to give money to? Does gambling count as similar winnings?




    Thanks to anyone who has a look at this for me.


Comments

  • #2
    jodaw
    Registered Users, Registered Users 2 Posts: 726 ✭✭✭jodaw


    Feeling you can win lots of money from Gambling and actually doing are two entirely different matters. Also paper trading is entirely different to real time ...

    You seem to give the impression of certainty in you abilities to win substantial amounts. So certain that you are putting the cart before the horse in worrying about the tax implications ...

    ... if i were you i would be more worried about winning the actual cash first. Statistics show that 3% are winners on the site that you mention. What is your edge that makes you part of this group???

    Now before the tax man can get his hands on you. You will have 20% tax. From your friendly website administrator in the form of a Premium Charge that is applied to the account of winners ...

    This futhers reduces your edges ...

    Then and only then you will have the worry about revenue implications ...

    In Short ... Mission Almost Impossible

    Good Luck


  • #3
    Nolimits
    Registered Users, Registered Users 2 Posts: 1,681 ✭✭✭Nolimits


    jodaw wrote: »
    Feeling you can win lots of money from Gambling and actually doing are two entirely different matters. Also paper trading is entirely different to real time ...

    You seem to give the impression of certainty in you abilities to win substantial amounts. So certain that you are putting the cart before the horse in worrying about the tax implications ...

    ... if i were you i would be more worried about winning the actual cash first. Statistics show that 3% are winners on the site that you mention. What is your edge that makes you part of this group???

    Now before the tax man can get his hands on you. You will have 20% tax. From your friendly website administrator in the form of a Premium Charge that is applied to the account of winners ...

    This futhers reduces your edges ...

    Then and only then you will have the worry about revenue implications ...

    In Short ... Mission Almost Impossible

    Good Luck
    I don't want to go into exactly what we'll be doing, but we've been doing a trial run for a while, starting out with a mythical €2,000 and adding and subtracting our winnings and losses and without taking into account the 20% tax from the gambling company admittedly we've been up over €1,000 most weeks while still keeping our stakes smaller then they will be as our account grows. The viablility of the project isn't what I'm asking for advice here for, I've been elsewhere for that and then started a run through as well. If it ever comes to puttin money into it (and we won't do it unless we're certain) I feel we will make money. Again though the question here for me is the gift tax (or lack of).


    Thanks for your time.


  • #4
    jodaw
    Registered Users, Registered Users 2 Posts: 726 ✭✭✭jodaw


    I understand that you are reluctant to reveal your method. However from the amounts of your bank and a 50% return on bank per week, i would guess it is some sort of trading system. In this case the more people that know you exact system the better, since the people that are thinking the same thing as you as the exact same time ( or preferably slightly after ) swing the momentum further in your direction and hence your profit.

    Either way, you said that you did not wish for advice on your system so forgive me for my intrusion ...

    As far as advice on tax implications. I am sure there are other people better positioned to give advice on this. But for 1,000 per week it is a non-issue ...

    Why not run two accounts concurrently ? - or maybe the system does not make this easily achieved.

    Failing this :- lodge a 1,000 to your current account per week, withdraw 500 and hey presto ... no Gift Tax issue ...

    Really i see this as a non-issue

    Concentrate on winning real cash conistently then consider options to get around the PC and then your quids in.

    Good luck in the future


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