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Daniel Negreanu Calls Out US Tax Laws; But Why? 

Poker pro Daniel Negreanu, recently took to Twitter to call out United State of America’s (USA) Taxation laws. The Canadian player who resides in the US, feels that the US Tax laws adversely affect the professional gamblers more than anyone else. He also shared an example to support his case. 

DNegs tweeted saying, “US Tax laws are worse for professional gamblers than anyone. You owe even if you lose.” He added an example saying hypothetically, a player loses $1 million in 2015, and wins $900,000 in 2016. His total net profit stands at just $100,000. However, the tax he owes to the government in 2016 would be around $270,000.

US Tax laws are worse for professional gamblers than anyone.

You owe even if you lose.

Hypothetical:

2015 lose $1 milllon
2016 win $900k
Total: -$100k

Taxes owed in 2016:
$270k ish

Businesses can carry forward losses, but not gamblers.

— Daniel Negreanu (@RealKidPoker) August 24, 2022

According to the current American gambling tax laws, 24% of a US resident’s winning is deducted on the spot. But in case of nonresidents, the Internal Revenue Service (IRS) requires them to report gambling winnings in Form 1040NR. According to the form, the winning income is taxed at a flat rate of 30%.

Negreanu being a Canadian, he falls under non-residents and is liable to pay 30% tax on his winnings. Hence he says $270,000, i.e., 30% of $900,000. He ended his argument saying, “Businesses can carry forward losses, but not gamblers.”

The Candian’s tweet received mixed reactions from his fans world wide. Popular players like Jeremy Ausmus, Josh Arieh also shared their views on the tweet.

Incorporating your poker business fixes this says some CPAs

— Jeremy Ausmus (@jeremyausmus) August 25, 2022

Imagine having a losing year…..🤷🏻‍♂️

— Joshua Arieh (@golferjosh) August 24, 2022

A Canadian user replied to Negreanu’s tweet saying gambling winnings are not taxable in Canada and hence he loves the country. 

Hence why I love Canada where gambling winnings are not taxable. You have to prove your losses or winnings when they come knocking, but I showed them my spreadsheet and they accepted it. #lovethiscountry #exceptthecold

— Jordan Ostrem (@Sliver9) August 24, 2022

Another user took the opportunity to compare the US gambling laws with that of Hungary. The user shared that the tax for gambling on foreign websites in Hungary is approx 56% and that there are no proper domestic sites in the country. 

In Hungary its worse. The same method but the tax is for gambling on foreign websites is approx 56% and we do not have proper domestic sites. There are no poker sites at all. And the casinos are useless and poor and its on governement hands. All of them. pic.twitter.com/WxZFRqYECK

— Bézbózsapka (@gnarroni) August 25, 2022

Another user named ‘stackman’ asked Negreanu if he was a gambler or a poker player.

Are you a gambler or are you a poker player?

— Ed "The Stackman" Stackhouse (@stackman1973) August 24, 2022

One of the users also shared that the tax laws forced him to give up on poker.

That's why I gave up on poker, except for small kind 1-2, 2-5. Stock market gambler can carry their loss forward, indefinitely. If I lose $200K one year, and then make $300K the next year, I only pay taxes on the net. Plus it's often treated as long-term capital gains.

— cpurkiser (@cpurkiser) August 25, 2022

US President Joe Bidden recently signed the Inflation Reduction Act of 2022. The new act includes a number of provisions for corporate tax, healthcare, energy, and climate change provisions. Like Negreanu, popular poker pro Mike Matusow also took to Twitter to express his disappointment on the tax laws introduced by Biden.

In case any of you don’t know what socialism and communism is I bring you @JoeBiden who takes peoples hard earned money & gives it to people who took out a loan & are to lazy to work so makes you pay for it too get votes! If you can’t see this than you’re a moron & unfollow me!

— Mike Matusow (@themouthmatusow) August 24, 2022

For more updates and news, keep reading GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter, and Telegram.

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