Where to store blackjack cash and have it non-taxable?

[Tim]

I guess you could “gift” it to different people that need it.
Then they could “gift” back to you with an additional amount just to say thanks for your generosity. You could use Uber for pickup and delivery. Nice little envelopes with a cute logo similar to Flipper.

Technically “gifts” are non-taxable, right? Some might call you a “loan shark”. The good part is you don’t have the cash in your closet. What could go wrong?

[jacoavlu]

https://www.irs.gov/taxtopics/tc419

Topic Number 419 - Gambling Income and Losses

The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the income on your tax return.

 

It's pretty clear.

[jfoxcpacfp]

This is nuts. You must report your winnings as taxable income. You are only compounding the risk with your routine cash deposits. Read the link that @jacoavlu provided and you won't have to worry about depositing the winnings, as you will have a legitimate explanation.

And remember that, at some point, the house always wins.

[jacoavlu]

also, and I'm being serious, are you sure you don't have a gambling problem? This is not typical behavior. You could seriously ruin your career and I'm frankly surprised you have the time.

[Faithful Steward]

jacoavlu wrote:

I would strongly suggest you stop going to the casino 3x/week as a resident.

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AMEN! You should be spending your time becoming a great doctor, not a great gambler!

[Doc Spouse]

dgu334 wrote:

Technically, the law states that winnings from table games (including blackjack) are not taxable (unless you hit the jackpot stuff which doesn’t apply to me cause I don’t play the side bets).

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Yeah, that's wrong. The law states that the casino doesn't have to issue a W-2g on some table games (including blackjack), but the winnings themselves are still taxable.  It would be nice if that wasn't the case

My vote is to simply pay the taxes.  It's the right thing to do, and the money you'll pay is negligible.  Besides, why even take the slightest risk that it will come back and bite you later on?  The risk vs reward just isn't there.  Finally, if you're serious about the hobby, then taxes should be built into your targets anyway.

Still, if you're bound and determined, and don't want to carry large stacks of cash around, why not just go to your local bank branch, rent a safe deposit box, and start stashing your money there?  Throw in a few passports, maybe a personal weapon, and boom... you're Jason Bourne.

If that's too boring, then I'd probably go with ICB's recommendation - gold.  It's easy to hide, can be used as currency if nothing else (in case you want to trade it for a house later on :P ), and there's always the chance it'll appreciate in value.

 

 

 

[jfoxcpacfp]

I just thought of something - if a physician is convicted of a felony, doesn't that kind of mess with their career?

[CordMcNally]

jfoxcpacfp wrote:

I just thought of something – if a physician is convicted of a felony, doesn’t that kind of mess with their career?

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It certainly doesn't help!

[CordMcNally]

dgu334 wrote:

Technically, the law states that winnings from table games (including blackjack) are not taxable (unless you hit the jackpot stuff which doesn’t apply to me cause I don’t play the side bets). I just don’t want to draw extra attention from banks/IRS with routine deposits of large amount of cash because there’s been reports of the IRS seizing bank accounts without sufficient evidence (bank secrecy act) as a prophylactic measure for underground crime and/or terrorist organizations.

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What...are you serious?! If you truly believe that then why don't you just deposit it and then when the IRS comes around just tell them what you told us. You shouldn't have anything to worry about...

 

Also, I doubt the IRS is seizing bank accounts for concerns about underground crime and/or terrorist organizations over a few thousand a month.

[Doc Spouse]

IntensiveCareBear wrote:

If you want the hassle of chasing your tail and wasting ATM fees, you can take out the money to play casino games on casino ATMs and save/photo the receipts. Then, don’t make any deposits for more than 600 over what you took out recently. Also, take out cash at those same ATMs to buy your groceries, bills, etc. Remember to pay taxes as applicable… I think you can connect the dots there. It is a big hassle and fair amount of fees, though.

Storing stacks of cash isn’t a big deal. Think of where nobody would look… not a safe or sock drawer or something dumb and obvious (thieves almost always go for bedroom first… most common place for jewelry and valuables). Cash loses to inflation at roughly 3% per year, though… that, not theft, is its biggest downside.

A much simpler and better solution is that gold is an extremely compact store of wealth. You can buy it with cash (or MO/check)… exchange it for cash anywhere in the world at any time in the future. I have tens of thousands in gold coins around my townhouse (eagles, sovereigns, etc), and nobody would ever know. You can put enough gold to buy a new car in the palm of your hand. I keep them in an empty soup can buried in the pantry, shoe box piled over in the closet, old board game that nobody plays, etc. Gold’s a highly compact store of wealth, keeps up with inflation (not day to day, but over the long haul), and is a good diversification asset (just shouldn’t be more than 3-10% of portfolio, depending on market conditions, due to no dividends). Silver doesn’t really work… more variable in price and not nearly as light and compact.

…Congrats on your success, but also remember that there are many things more humanistic than taking money from people on a little felt table. You might be asked to ‘retire’ from playing at that casino at some point, especially if you increase the stakes and continue to have success. Also, bear in mind that the stock market is a skill game with +8% expected return (rather than -2% to -10% on blackjack, poker, or most other casino games). Just food for though. GL

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I had to go find the story, but make sure you have a will! :P

Man dies, leaves $7 million in gold hidden in house.

[IntensiveCareBear]

There is no need for value judgments. The shame and guilt is absolute nonsense... we are all adults and far too smart for that junk.

Nobody is doing anything illegal. It doesn't matter what one social circle might think or what a "good book" fabricated thousands of years ago with fables to "teach" illiterate peasants may or may not say about things. All that matters is the law of the land... and one's own personal code of ethics, morality, and enjoyment within that law.

Just because I don't ride a Harley or smoke weed (where it's legal) or go on sugar daddy dating sites or train MMA or have a pet boa or shoot guns or play roulette every day... that doesn't make those things wrong. They are simply personal choices... and legal ones.

...so, when you finish stoning the bad old gambler and telling him how he needs to reform his ways and doesn't have time for that and will lose everything, then you can feel free to resume your closet porn watching and binge eating and racism or social media addictions as you choose. I won't tell

[JBME]

CordMcNally wrote:

jfoxcpacfp wrote:

I just thought of something – if a physician is convicted of a felony, doesn’t that kind of mess with their career?

Click to expand…

It certainly doesn’t help!

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It actually might help if you're trying to be the top doctor for the mafia. I hate to go there but I can't resist-it also could help you become the president's doctor, as he loves stories of people hiding (though probably legally) money from the IRS. forget medical qualifications...if you know how to hide money from the IRS and you sort of have a medical background, he wants you considered to be the White House doctor, like Ronny Jackson

[CordMcNally]

IntensiveCareBear wrote:

Nobody is doing anything illegal.

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Except tax evasion is illegal.

[Doc Spouse]

Lol, alrighty.  I'm locking this one down before it gets out of control.  Hope OP has found what he was looking for.