steveheremd asked:
Last year for the WSOP main event I payed my own way (all expenses plus the $10,000 buy-in) and ended up winning a little over $30K. This year I have some friends who want a piece of the action by paying for part of the buy-in and trip. Things were simple last year as far as the taxes and such and I am just not sure if I want the extra work of seeing that the income (If I win anything) is distributed and the tax forms are proper. Has anyone done this (not including entries won online) where you were sponsored to play? Any suggestions on how to approach this or should I foot the bill and the risk alone again?
Tiffany
Last year for the WSOP main event I payed my own way (all expenses plus the $10,000 buy-in) and ended up winning a little over $30K. This year I have some friends who want a piece of the action by paying for part of the buy-in and trip. Things were simple last year as far as the taxes and such and I am just not sure if I want the extra work of seeing that the income (If I win anything) is distributed and the tax forms are proper. Has anyone done this (not including entries won online) where you were sponsored to play? Any suggestions on how to approach this or should I foot the bill and the risk alone again?
Tiffany
Tags: Risk, World Series, Wsop Main Event
Marie
If you win the profit, then only you can claim the taxes. However, you can give your friends a portion of the profit as a gift (hopefully tax free on their part). Trying to get sponsers/friends is always the best way to go, just make sure that you have a proper repayment in the case you win (just look at Jamie Gold’s problem with promising his mentor money. Contracts are always legally binding and safe on your part.
Harold
Congrats on last year winning some money out of the 8700 people who played in the main event. I made it to the start of day 3 when my cards were good enough to get me into trouble before the money nut broke.
My suggestion is to sell off just a part of the whole thing. Example: If your buy-in and trip together cost you $12,500 then divide that by 10 for an amount $1,250= 10% of the take. You can sell it as units so that if one person puts up $2,500 they would be entitled to 20% of your winnings and at the same time they have contributed to the trip expenses. This way you can also sell off only the amount you want to (10%, 20%, etc).
Try to find out what restrictions the Rio has on issuing W2-g forms for those sponsoring you. I believe that technically they can issue the forms but the person may need to be present to get one issued. If it is not issued separately, you may get stuck with the income on your taxes. Good luck to you!
Marcus
If you can handle it by yourself then that is the best way. If you really want to include some friends and especially if they are going along on the trip, that sure sounds like a way to make sure you have a vested cheering section! Good luck and great cards to you!
Barbara
In 2005, Steve Danneman had a buddy pay for half of his entrance fee and he ended up in 2nd place, having to split over $3 million equally.
Of course the next year, Steve paid for all of his buddy’s entrance fees (I believe 6 or 7 friends).
Laurie
It’s easier than you think to do a sponsership thing, especially among friends.
Just type up a thing on your computer that says this:
I, ——————, resideing at——————in the city of ———–,
state of ————-, hereby agree to sponser —————–
resideing at ————— in the city of ————, in the state of ———-, into the World Series Of Poker Main Event to be held on _________ at _____. This sponsership is for $_______.
In exchange for this sponsership, ———— will recieve
_____ pecentage of any winnings acquired by ______
during this event.
Have this document signed and dated by both parties in front of a notary public and notarised. Make sure the WSOP people have copies of all your sponserships, so IRS has the correct tax percentages.
Have fun, I’ll see you there. I play almost every year.
Harold
go for it. because of taxes. last year you got lucky and you know it. lets assume they put up the 10 grand . it is a gift and it is all yours……….use the 10 g’s to off set any losses you incurred during the year. so assuming you won10 large of your own during the year and were first out of the main event this year, you owe no tax. because you got a sponsor you keep 25 hundred you otherwise would have had to pay in tax. so her is the plan. early on you got a 50/50 shot of taking out any player you have seen on TV. only top 50 of 10 thousand people get paid so you know you will not be in the money. but you got a $2500 stake to get in a cash game with the big boys.