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BJ21.com Free Message Board
Canadian Tax Laws
Posted By: MathProf In Response To: BJ FOR A LIVING (BJFAN4)
Date: 6 Dec 01, 8:21 am
I don' think that is quite right about Canadian tax laws. This subject has come up on Green Chip, and this is what I learned from a Canadian player.
In Canada, winnings from recreational gambling are not subject to tax. However, if someone is a professional who is in the business of gambling, then they have to file just like any other business. Thus that in Canada, the tax treatment for professional gamblers is worse that that for other gamblers. This is the opposite of the situation in the US. Here, professionals qualify to file schedule C, which usually more favorable than just filing 1040-Otrher Income and Schedule A.
I actually believe that the Canadian system is more rational. It makes sense to require professionals to pay income tax. But it doesn't make sense to tax the average Joe who does Negative Expectation Betting as a past-time. In the US, these players basically just don't comply with the tax laws. Casinos would go out of business if half of the American gamblers did comply. Thus we have the awful situation of having laws and just winking who violate them.
My understanding of Canadian law is second-hand. But my source was a Green Chipper whom I respect.
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