I've only played a BJ tournament out of the country once before (Canadain Masters last year), but didn't cash so I was wondering what if any taxes there maybe for the UBT winners in Aruba? Actually another player asked me this question today and I didn't know, so I thought it would be a good question to ask here.
its all you from my experience with the ubt here in the states, where I was given a check for the entire gross amount of my winnings (minus tip), I can only assume that out of country winnings will be handles in the same manner. kudos to russ & crew for writing checks out to the winners the same day we cashed, rather than taking the several weeks or months they could have realistically taken to pay us. bottom line is, taxes are the winners' responsibility, not the ubt's. -hd.
Thanks Hollywood After last years UBT finals I had talked to several of the winners who said they where paid promply for they UBT appearance. Thanks Hollywood for that information, but I was concerned with winning out of the country. I know different countries handle taxes differently, such as if a Canadain wins a tournament in the U.S. they have to pay something like 35 to 38% right of the top before receiving any winnings. This was my question about any winnings in another country. After talking to Joep last night, he wasn't sure about the taxes. but he did inform me that a player was not allowed to carry over $10,000 out of the country, unless you declared more when you first got there. Should you win any money at the UBT event, Joep told me the best way to handle it was simple have the UBT send you a check for your winnings once you get back in the states. If this is the case I assume no taxes would be taken out at that time. Personally this is a problem I think most of us would LOVE to have to worry about...LOL
Unless Aruba has some odd rule of which I'm unaware, Joe is likely talking about the normal US customs regulations that require you to declare whenever you are transporting more than $10,000 in cash into the country. As he mentions, a check is the best solution. But, you're free to bring however much cash back you'd like, as long as you tell US customs about it. On taxes in Aruba, I haven't a clue. Of course, you'll owe US tax on any winnings.
I hope I owe... How nice would it be to get to go to Aruba for over a week and then get to pay taxes, or I would hope I have to pay taxes, that will mean I won something...LOL
For amounts greater then $10,000.00, both the IRS and US Customs require you to fill out "FinCEN Form 105-Report of International Transportation of Currency or Monetary Instruments". However, the US Customs site says you don't need to report it if it's transfered through normal banking procedures or mail delivery, but the IRS site says you do. Both sites say to check out "US Tax Treaties-Publication 901" for any possible additional requirements with the host country, and both sites say failure to comply can result in ....... It's a post 9/11 world. Call your tax person before you leave.
One more thing... I think the $10K limit is per family, not per person. So, if you're travelling with a spouse, you don't get $20K before the disclosure requirements kick in.
A Great Vacation Yes that was exactly the point I was making to Tex you may bring as much cash as you like to Aruba or anywhere else in your travels as long as you declare anything over 10,000. If you are returning to the states with more than 10,000 you are suppose to declare that also. Ken is right it's 10,000 per family so it looks like this may be a trip to bring the girlfriend on if you have that winning feeling. Tell the wife that for tax purposes she must stay home. :joker: If you decide to go that route. I cant promise you that your clothes wont be on the lawn when you return home from Aruba. But I will bet you had one hell of a time :laugh: Joep
Requirements Ken is absolutely right. If you are a US citizen, any money you win gambling from any source anywhere in the world is taxable, whether it is reported to the US government or not.
exclusions I am not sure what the current law on that is, but it used to be that US citizens who lived and worked overseas for the entire calendar year could exclude their income up to a certain point from taxation (I believe it was $70,000). However, that law is not applicable in this situation (one-time overseas gambling wins).
There is a Loop Hole Kevin is correct. I had the opportunity to go work for company over in the middle east where the first 70,000 was not taxable. A tempting offer but as of now I have passed on it. Joep
