If this is determined to apply to professional gamblers, it will really be
prohibitive. However, I believe your accountant got a detail wrong.. you'd
be taxed 2% on 70% of revenue, so the tax would be $70k instead of $100k.
Obviously, still brutal.
Ed
On Fri, Oct 31, 2014 at 1:01 PM, Bob Dancer bobdancervp@hotmail.com
[vpFREE] <vpFREE@yahoogroups.com> wrote:
>
>
> The following was posted by attorney Bob Nersesian on the BJ21 forum
> concerning Proposition 3 on the Nevada ballot:
>
> "This
> just popped up in my office from another attorney as an issue. For
> those of you who file Schedule C income on your gaming activities, it
> appears that the Prop. 3 gross receipts tax will apply to all payouts
> received in the tax year in excess of one-million dollars. While I am
> not opining on the methodology of collection, the availability of
> discovery by the Nevada taxing authority, or the practicalities of
> implementation, clearly this puts effectively all professional gamblers
> at risk. Simply, if you churn three million to win $150,000.00, it
> appears that there would be a tax owed to Nevada in an amount of over
> $60,000.00. It appears to also apply to non-Nevada Schedule C filers
> whose activities occur in Nevada. It also applies to a bad year where
> two million churned results in a loss of $10,000.00, and a tax of just
> shy of $40,000.00 to be paid on top of the loss."
>
> I asked my accountant what it would cost me if I had $5 million in W2Gs in
> a year. She responded that IF this proposition passes and IF it applies to
> Schedule C, the tax on $5,000,000 in W2Gs would be $100,000 --- whether I
> won or lost that year.
>
> If this passes and is enforced, that's the end of my video poker career in
> Nevada. Playing quarter full pay deuces wild would avoid this problem, but
> that's not an option that interests me.
>
> Bob
>
>
> [Non-text portions of this message have been removed]
>
>
>
[Non-text portions of this message have been removed]
Posted by: Ed Miller <ed.miller@gmail.com>
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