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Cash problems

LuckyDucky Posts: 139Subscriber
edited October 2014 in Poker Goals and Challenges
OK... the discussion title is a little misleading... sorry, 'bout that...

What I'm wondering is what you guys do with your cash winnings? Not, as in "what do you buy?"- but what do you actually do with the $100 dollar bills? Hide them under the mattress? Put them in a bank account? Carry them around in a backpack? Open a safe deposit box? Open an account at the casino? Roll them in to $1,000 rolls and tie them with rubber bands and hide them around the house? Bury them in the backyard? Etc.

Comments

  • neverlearn2 Posts: 2,862Subscriber
    Like 30% of my winnings go to my wife's shopping.

  • ThehammahThehammah Posts: 7,090Subscriber
    I have a safe thats bolted to the floor. Wont tell you where tho. Just in case. :-)
  • workinghard Posts: 1,573Subscriber
    I keep 5k at home for poker and more than that I put into the bank. As much fun as it may be to dig holes in the hard to bury money that you may, or may not, remember about later, I get my kicks from feeding the atm my 100 bills.
  • BartBart Posts: 6,072AdministratorLeadPro
    edited October 2014
    LuckyDucky said:
    OK... the discussion title is a little misleading... sorry, 'bout that...

    What I'm wondering is what you guys do with your cash winnings? Not, as in "what do you buy?"- but what do you actually do with the $100 dollar bills? Hide them under the mattress? Put them in a bank account? Carry them around in a backpack? Open a safe deposit box? Open an account at the casino? Roll them in to $1,000 rolls and tie them with rubber bands and hide them around the house? Bury them in the backyard? Etc.
    There really isnt a need to keep cash on hand in today's world. It's just not worth hiding from the IRS if that's what your asking--along with it being illegal.

    Most casinos will allow you to open an electronic players bank if they don't have physical boxes available.

    If that's not what you are asking than you can easily split the extra money between a standard index fund like the S & P and diversify it by buying gold which tends to work the opposite of the market. Gold is an asset that won't beat the returns of the market long term but will beat inflation and is a lot better than keeping a bunch of cash buried somewhere in your back yard as inflation on average runs about 2%.

    Bart
  • LuckyDucky Posts: 139Subscriber
    Speaking of taxes- I remember from when I used to trade futures as a hobby, as non-professional, you were required to pay taxes on profits but couldn't deduct losses as a cost of doing business. Not only that, but I think you were required to pay taxes on INDIVIDUAL trades that were profitable. For example, if you traded three times, lost $1,000 per trade on 2 trades but profited $2,000 on the third- you'd owe the IRS taxes even though all you did was break even...

    Is it the same with poker? If you have a winning night, do you have to log the wins and calculate the taxes and set those aside? I'm guessing for the pro that's registered with the IRS, they can do an end-of-year P&L, but what about the recreational player?
  • ThehammahThehammah Posts: 7,090Subscriber
    edited October 2014
    Bart said:
    LuckyDucky said:
    OK... the discussion title is a little misleading... sorry, 'bout that...

    What I'm wondering is what you guys do with your cash winnings? Not, as in "what do you buy?"- but what do you actually do with the $100 dollar bills? Hide them under the mattress? Put them in a bank account? Carry them around in a backpack? Open a safe deposit box? Open an account at the casino? Roll them in to $1,000 rolls and tie them with rubber bands and hide them around the house? Bury them in the backyard? Etc.
    There really isnt a need to keep cash on hand in today's world. It's just not worth hiding from the IRS if that's what your asking--along with it being illegal.

    Most casinos will allow you to open an electronic players bank if they don't have physical boxes available.

    If that's not what you are asking than you can easily split the extra money between a standard index fund like the S & P and diversify it by buying gold which tends to work the opposite of the market. Gold is an asset that won't beat the returns of the market long term but will beat inflation and is a lot better than keeping a bunch of cash buried somewhere in your back yard as inflation on average runs about 2%.

    Bart

    I wud NEVER recommend to invest in ANY commodity for a short term investment if you cant afford to lose the entire investment. If you dont want to keep cash then a money market account for your liquid bankroll needs is best.

    Even gold can go up and down dramatically in the short term. Also gold isnt 100% tied to int rates ( cash supply). But the $. As gold is priced in dollars and funny enough demand in india

    For funds you dont need in the short term then normal investment recommendations would be a diversified portfolio is best. Indexing is still best overall roi and i prefer etfs as apposed to mutual funds
  • ddz Posts: 152SubscriberProfessional
    2+2 has some nice threads on tax issues, and I remember that Bart had Russ Fox, an accountant (and poker player) who specializes in gambling taxation issues, on his podcast at some point, perhaps back in the deuce plays days?

    Try this thread: http://forumserver.twoplustwo.com/57/poker-legislation-forum-brought-you-ppa/u-s-income-taxes-re-poker-740589/

    Disclaimer: any advice given is not mine, seek counsel from your own tax professional, etc
  • JCW Posts: 591Subscriber
    I recommend having a player's bank at the casino. Then moving the money to your bank account in a slow fashion. If you keep all the money movement below $10,000 it doesn't get flagged by the IRS.

    However, the LA casinos are taking pictures of anyone that moves more than $1500 at a time. But I believe that is for the DoJ looking for money laundering.
  • sleepyboy Posts: 127Subscriber
    JCW said:
    If you keep all the money movement below $10,000 it doesn't get flagged by the IRS.
    Is this actually true? I've heard its $10k in a 30 day period. So if I deposit 6k this week and 5k next week I will get flagged. I've also heard that it doesn't really matter how much you deposit, if something looks suspicious then it can get flagged (i.e. consistently depositing 5k every month). I'm no expert so take this for what it is, something I 'heard', but if any people who actually know would shed some light that'd be cool.
  • beauregard Posts: 1,592Subscriber
    I keep a few buy-ins in my pocket.
    a couple more buy-ins go in a drawer.
    the rest goes to the bank.

    i try to pay for most things with cash - but since I've been lucky to have real jobs in the past as well as credit cards/mortgages, banks like to see money coming in even if its just in $500 increments. it's better to maintain credit than try to re-establish it later.
  • workinghard Posts: 1,573Subscriber
    Is this actually true? I've heard its $10k in a 30 day period
    10K movement of money in a 24hour period needs to be reported to the IRS.

    http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FAQs-Regarding-Reporting-Cash-Payments-of-Over-10000-Form-8300
  • workinghard Posts: 1,573Subscriber
    So, I've read a couple articles about civil forfeitures where the police can take your cash or even funds out of your bank account because (so they claim) they think you are suspicious for having that money. Just read an article where making several bank deposits under 10K can be viewed as "structuring" to avoid reporting the deposits to the IRS. I'm wondering then if it makes most sense to make deposits 10K+ so that you report your deposits. for an information video on this topic, see the link below:

  • UntreatableFPS Posts: 1,004Subscriber
    I hide a few K for my short term roll in plain sight. I'm a firm believer of hiding in plain sight instead of in obvious secure places

    The rest I just put in the bank and treat the same way I would as if I got a paycheck from a regular job
  • beauregard Posts: 1,592Subscriber
    weird to hear about IRS freezing bank accounts as well as police forfeitures - so if you've got too much "profit" - I'd recommend gold and silver coins. They're easy to buy & sell. And lose less value than keeping cash around.

    http://www.nytimes.com/2014/10/26/us/law-lets-irs-seize-accounts-on-suspicion-no-crime-required.html?_r=0
  • FreeLunch Posts: 1,311Pro
    Pay your taxes. Bart is right about that 100%. Its not about if the 10K reporting will or will not hurt you. Thats not how you will get caught. You will get caught when you buy a car or something big in cash and IRS computers figure out you are not reporting enough income to justify it.

    Key to remember - anyone who turns you in gets a percentage of what the IRS collects. Talk to the wrong person and you are in jail.

    Bart is wrong about gold. That was great advice 10 years ago but it is not at all obvious that gold is a good long term value now.
  • beauregard Posts: 1,592Subscriber
    edited October 2014
    a few things you should know about gold:
    1. the supply is finite - as in limited. There are no more "finds" that will flood the market and hurt prices.
    2. It's price has and continues to increase(d) as more people look for secure investments. As the world gets crazier (e.g., ISIS), gold is the investment of choice.
    3. antique gold coins give you the best of gold bullion value with the advantage of collectibility
    4. gold is a commodity that's traded around the world - regardless of government control
    5. gold is not beholden to a CEO, company scandal or product recall. It is not controlled by a group (i.e., DeBeers) that dictates its value.
    6. gold is something you can possess/hold. It's not a digital number (i.e., bit coin) or a stock certificate.

    This is not to say it's the ONLY way to invest. But long term, gold has proven and will continue to prove that it's a strong/reliable asset.
    470 x 392 - 17K
  • LuckyDucky Posts: 139Subscriber
    edited October 2014
    "regardless of government control" -- don't be so sure... http://en.wikipedia.org/wiki/Executive_Order_6102 ... ah, well back then money was backed by gold... different times now... but, still, you never know... I say buy land... land with water and soil good enough to grow your own food... hehe ... oh, but wait.. then you can run in to eminent domain: http://en.wikipedia.org/wiki/Eminent_domain...

    damn.. nowhere to turn... I say take the money and buy experiences and knowledge... at least they can't take that away?
  • khalwatkhalwat Posts: 997Subscriber
    I have a safe where keep enough money to play in the games that I play, and the rest goes into a separate bank account
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