Getting a Mortgage with significant income from Gambling

the5thace

Hello,

I am currently considering applying for a mortgage. I have a full time job at 34.5k + bonus and 15% savings of my planned mortgage.

The issue lies in that I also have an additional significant income via poker.

This year I have posted a total profit of 15.5k. I probably spend 20/30 hours a week playing.

Additionaly, the last 3 years of my life prior to getting a job I have lived solely from my poker income.

As a result, my current account transaction history looks a bit crazy. Significant withdrawals at completely random intervals as well as deposits.

Would it be worth trying to explain this to a mortgage approver or should I just tough it out and open another bank account and try keep my account history clean for 6 months or so?

Your thoughts would be greatly appreciated.

fits

You are going to have major issues getting a mortgage if they can see transactions to a gambling account. You will need to stay off it for six months so it doesnt show in your statements and apply at a different bank to that holding your main account.

the5thace

fits wrote: »

You are going to have major issues getting a mortgage if they can see transactions to a gambling account. You will need to stay off it for six months so it doesnt show in your statements and apply at a different bank to that holding your main account.

I don't have any major transactions with gambling accounts. I play live so the transactions are going through my debit card. I think they can trace where my withdrawals come from as I have made frequent withdrawals in casinos.

fits

What are the debit card transactions with? If its some gambling outfit they will see that.

newacc2015

the5thace wrote: »

I don't have any major transactions with gambling accounts. I play live so the transactions are going through my debit card. I think they can trace where my withdrawals come from as I have made frequent withdrawals in casinos.

Any more than €40 a month on gambling is high risk in the eyes of the banks. Have you paid tax on this income? They arent keen on undeclared income

TireeTerror

newacc2015 wrote: »

Any more than €40 a month on gambling is high risk in the eyes of the banks. Have you paid tax on this income? They arent keen on undeclared income

You do not pay tax on gambling income.

FortySeven

Not a noition of getting a mortgage. Luck is not something the banks can digest.

ps3man

I have heard of people being declined for small overdrafts over having a fiver a week going into a Paddy Power account. Long story short, gambling is an illness. Banks will only lend if your income is guaranteed. I am sure you are good at Poker but the Bank really won't care.

Henry Ford III

TireeTerror wrote: »

You do not pay tax on gambling income.

That's not necessarily true. If gambling income is generated in the nature of a trade the revenue will certainly be interested.

What exactly constitutes trading is a complex area.

p.s. Getting a mortgage against gambling income? Not a hope.

bonyn

Yep, best thing to do is set up a second bank account and use it for your salary and bills.

TireeTerror

Henry Ford III wrote: »

That's not necessarily true. If gambling income is generated in the nature of a trade the revenue will certainly be interested.

What exactly constitutes trading is a complex area.

p.s. Getting a mortgage against gambling income? Not a hope.

You would only pay tax on gambling winnings if it was part of your own business, for example if you owned a casino or a betting shop.

You could play Poker and support yourself exclusively from it and you still wouldn't pay any taxes on your winnings in Ireland.

Peregrinus

TireeTerror wrote: »

You would only pay tax on gambling winnings if it was part of your own business, for example if you owned a casino or a betting shop.

You could play Poker and support yourself exclusively from it and you still wouldn't pay any taxes on your winnings in Ireland.

This came up in the legal forum recently, and the inestimable Mr Incognito provided a link to this discussion of the tax situation. In summary, in the view of the author it's arguable in theory, but unlikely in practice, that the profits from gambling might be subjected to income tax (unless you are carrying on business as a bookmaker, obviously).

TireeTerror

Peregrinus wrote: »

This came up in the legal forum recently, and the inestimable Mr Incognito provided a link to this discussion of the tax situation. In summary, in the view of the author it's arguable in theory, but unlikely in practice, that the profits from gambling might be subjected to income tax (unless you are carrying on business as a bookmaker, obviously).

Exactly, and that is why there is no tax to be paid on it. This is not just the opinion of the author of that article, it is the very stance taken by the Revenue here in Ireland. In actual fact they use that specific report to determine that stance.

Henry Ford III

Interesting.

http://www.taxandlegal.ie/ITRQ42014.pdf