Question about gambling winnings in Canada - GoFuckYourself.com

Socks · 10-25-2009, 03:51 PM

Watching the end of the 2008 WSOP main event here, and the last Canadian busted in 5th place for 3.1 mil.

I understand that in Canada lottery and gambling winnings are tax free, while in the USA they're fully taxed. Is this right?

And what about this guy. Since he's a Canadian who won $3m in the USA, does he owe the IRS anything? Does he owe any Canadian taxes?

And if it IS indeed tax free.. Why aren't the Phil Ivey's of the world moving their 'home' to Canada? ;)

Mutt · 10-25-2009, 03:55 PM

my friend who owns NNConnect's roommate is in a big tournament in Poland, he went out today, finished in 6th place, picked up 100 grand. lives in Winnipeg, no tax. i'm sure the Americans withhold taxes from Canadians but the Canadians get it back.

not sure though.

Yngwie · 10-25-2009, 03:57 PM

I think since he won it in the US he will have to pay taxes on it here in Canada since it wasn't a Canadian based lotto or poker game. Not sure about the whole IRS thing, but I don't think he will owe the IRS anything.

stever · 10-25-2009, 04:01 PM

I believe he will have to pay the tax on the spot...in the usa
but he will be eligible to get all of it back since he is canadian

Mutt · 10-25-2009, 04:02 PM

Quote:

Originally Posted by Yngwie

I think since he won it in the US he will have to pay taxes on it here in Canada since it wasn't a Canadian based lotto or poker game. Not sure about the whole IRS thing, but I don't think he will owe the IRS anything.

nope, doesn't matter where the game is, gambling winnings are not taxed in Canada. i have no idea why, a guy busts his ass to make 60K a year at some job and pays taxes, another guy sits in front of a computer playing poker and makes 60K and doesn't have to pay any taxes - seems ridiculous. i can understand if the government wants to use tax free as a marketing thing in lotteries and other gambling activities that they run or make a cut of.

keenan · 10-25-2009, 04:12 PM

If you win $1,000,000 in Vegas you get taxed. If you win it in Canada, no taxes. Doesn't matter if you're a Canadian citizen, if you win the money on US soil you pay taxes.

After Shock Media · 10-25-2009, 04:12 PM

Either way when it comes to large winnings in the US. It really matters on how they give it to you. If you can have them write a check and make that payable to something besides yourself, such as a trust you can often avoid certain penalties/taxes. Since the actual cash never touched your hands. Then as long as there is a separate guardian for that trust, or if it was an annuity etc. You can save a bunch as long as you do not have direct control over it.

Not sure how this works with the large novelty photo op checks though. I just know I would not accept payment until I had spoken with my accountant first, be it large gambling winnings or holding a winning lottery ticket of a good size.

AZNNC · 10-25-2009, 04:22 PM

Quote:

Originally Posted by keenan

If you win $1,000,000 in Vegas you get taxed. If you win it in Canada, no taxes. Doesn't matter if you're a Canadian citizen, if you win the money on US soil you pay taxes.

Wrong.
You get it back if your a Canadian.

Yngwie · 10-25-2009, 07:37 PM

Quote:

Originally Posted by Mutt

nope, doesn't matter where the game is, gambling winnings are not taxed in Canada. i have no idea why, a guy busts his ass to make 60K a year at some job and pays taxes, another guy sits in front of a computer playing poker and makes 60K and doesn't have to pay any taxes - seems ridiculous. i can understand if the government wants to use tax free as a marketing thing in lotteries and other gambling activities that they run or make a cut of.

I didn't know it worked the same even if you win the $ in the US.

d-null · 10-25-2009, 10:04 PM

Quote:

Originally Posted by AZNNC

Wrong.
You get it back if your a Canadian.

check with a tax accountant, but you have to file a u.s. return and show losses to counteract the winnings, I don't think it is an automatic refund of taxes on large wins

amateurcanada · 10-25-2009, 10:08 PM

You can usually get a form or consult a local Canadian attorney about regaining taxes lost as part of a treaty. In regards to taxation on winnings - seek an attorney, not sure if foreign casino earnings are treated as "taxable income".

PersianKitty · 10-26-2009, 12:36 AM

It's taxed at (likely) 30% on the spot, then you have to file a 1040NR (Nonresident Alien Income Tax Return) at the end of the year in which you'd can also account for all your losses (online Canadians can offset the winnings with losses) and would receive a refund back of the tax taken.

keenan · 10-26-2009, 07:27 PM

Quote:

Originally Posted by AZNNC

Wrong.
You get it back if your a Canadian.

Proof? ...

Oh yeah, and to add... If you're American and you win $ in Canada, you don't get taxed in Canada, but when you declare your winnings at the border they rape you. And not declaring your money will be hard to explain if it's a large amount and you get audited.

"Sir, where did you get the money to buy that Ferrari?"

->"uhh, I found it."

10-25-2009, 03:51 PM	#1
Socks Confirmed User Industry Role: Join Date: May 2002 Location: Toronto Posts: 8,475	Question about gambling winnings in Canada Watching the end of the 2008 WSOP main event here, and the last Canadian busted in 5th place for 3.1 mil. I understand that in Canada lottery and gambling winnings are tax free, while in the USA they're fully taxed. Is this right? And what about this guy. Since he's a Canadian who won $3m in the USA, does he owe the IRS anything? Does he owe any Canadian taxes? And if it IS indeed tax free.. Why aren't the Phil Ivey's of the world moving their 'home' to Canada? ;)

10-25-2009, 03:55 PM	#2
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	my friend who owns NNConnect's roommate is in a big tournament in Poland, he went out today, finished in 6th place, picked up 100 grand. lives in Winnipeg, no tax. i'm sure the Americans withhold taxes from Canadians but the Canadians get it back. not sure though. __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

10-25-2009, 03:57 PM	#3
Yngwie I am an Alien from space Industry Role: Join Date: May 2003 Location: Ontario, Canada Posts: 11,118	I think since he won it in the US he will have to pay taxes on it here in Canada since it wasn't a Canadian based lotto or poker game. Not sure about the whole IRS thing, but I don't think he will owe the IRS anything. __________________ ICQ: 16544251 - Skype: gator37 @ eastlink.ca - email: yngwie @ isys.ca

10-25-2009, 04:01 PM	#4
stever Confirmed User Join Date: Jul 2005 Posts: 1,715	I believe he will have to pay the tax on the spot...in the usa but he will be eligible to get all of it back since he is canadian __________________ Brutal Bucks has extreme sites that convert!

10-25-2009, 04:12 PM	#6
keenan Registered User Join Date: Jan 2004 Location: Canadia Posts: 54	If you win $1,000,000 in Vegas you get taxed. If you win it in Canada, no taxes. Doesn't matter if you're a Canadian citizen, if you win the money on US soil you pay taxes. __________________ http://www.bleepo.org

10-25-2009, 04:12 PM	#7
After Shock Media It's coming look busy Join Date: Mar 2001 Location: "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn". Posts: 35,299	Either way when it comes to large winnings in the US. It really matters on how they give it to you. If you can have them write a check and make that payable to something besides yourself, such as a trust you can often avoid certain penalties/taxes. Since the actual cash never touched your hands. Then as long as there is a separate guardian for that trust, or if it was an annuity etc. You can save a bunch as long as you do not have direct control over it. Not sure how this works with the large novelty photo op checks though. I just know I would not accept payment until I had spoken with my accountant first, be it large gambling winnings or holding a winning lottery ticket of a good size. __________________ [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

10-25-2009, 10:08 PM	#11
amateurcanada Confirmed User Industry Role: Join Date: Jul 2001 Posts: 3,766	You can usually get a form or consult a local Canadian attorney about regaining taxes lost as part of a treaty. In regards to taxation on winnings - seek an attorney, not sure if foreign casino earnings are treated as "taxable income". __________________ be our partner - join nichepartners today will.assum.producer @ AmateurCanada.com / icq: 30146166 / facebook.com/will.assum / #amateurcanada

10-26-2009, 12:36 AM	#12
PersianKitty Meow Media Inc. Industry Role: Join Date: Jul 2001 Location: In the valley of the sun, cactus, tacos, tequila, and nod Posts: 7,785	It's taxed at (likely) 30% on the spot, then you have to file a 1040NR (Nonresident Alien Income Tax Return) at the end of the year in which you'd can also account for all your losses (online Canadians can offset the winnings with losses) and would receive a refund back of the tax taken. __________________ Wondering what webmaster programs PK uses? Check them out here!