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]
Posted by: Bob Dancer <bobdancervp@hotmail.com>
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