Working for cash?

[KENT2008]

does anyone know what the ato's stance is on gambling winnings?

 

[cooperjai]

ato won't touch gambling winnings, for the simple fact that if winnings were seen as a source of income then gambling losses would become deductable and as there are more losing gamblers than winners the ato would lose out.

 

[tandino]

That, and most gambling gains are classed as being more chance than skill.

Even Joe Hachem, even though he was playing a game based on skill, didn't have to claim his WSOP winnings because playing poker to him at least was a hobby, as opposed to an occupation.

Although it is a fine line, don't think the ATO wouldn't be all too pleased if a heap of landscapers started doing landscaping on Saturday mornings as a hobby.

 

[KENT2008]

what if u were in between switching jobs and during the time you had off it was basically your only income?

 

[ben_cats_fan]

what if u were in between switching jobs and during the time you had off it was basically your only income?

Still wouldn't matter unless you could prove you were a professional gambler. Theoretically, anything you make income out of can be classed as a profession and you can deduct expenses incurred whilst trying to earn that income.

This includes gambling. For example, you could claim entrance fees into a poker tournament and even claim the losses you incur as business losses carried forward to future years. However, the onus is on you to prove to the ATO that this was your profession, and fwiw, that is the biggest hurdle, and one you'd in all likelihood not be able to jump.

Plus you'd have to pay taxes on earnings etc. etc. etc.

 

[Rob]

Still wouldn't matter unless you could prove you were a professional gambler. Theoretically, anything you make income out of can be classed as a profession and you can deduct expenses incurred whilst trying to earn that income.

This includes gambling. For example, you could claim entrance fees into a poker tournament and even claim the losses you incur as business losses carried forward to future years. However, the onus is on you to prove to the ATO that this was your profession, and fwiw, that is the biggest hurdle, and one you'd in all likelihood not be able to jump.

Plus you'd have to pay taxes on earnings etc. etc. etc.

Generally games based purely on chance are not going to be considered businesses - eg. most casino games. No-one's going to accept that you win consistently at roulette, blackjack, etc. Poker is arguable - but if you're making serious, regular winnings from playing it then you're arguably carrying on a business. Joe Hachem now would be paying tax on his poker earnings (even if he didn't originally). If you're making losses, then it's going to be hard to argue. On the rare chance you get looked at by the ATO you'd probably have to go to court to get your way.

 

[ben_cats_fan]

On the rare chance you get looked at by the ATO you'd probably have to go to court to get your way.

I would suggest that if you claim you are a professional gambler, your chances of being audited are far higher than some other "professions".