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winning from gamble

I'm new

Views 17039

Replies 13

Hi, 

 

I play poker regularly last year and umemployed, I won $15,000 by playing, and hit a poker jackpot worth $33,000. Should I lodge the money as a income? I called the ATO and the staff told me to put the money as other income, however which makes me owning the ATO aorund $6,000 debt. Can anyone tell me if I should lodge the income?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Community Moderator

Replies 7

Hi @LIANGWANG

 

Welcome to our Community.

 

@macfanboy is correct. When you receive an amount of money from a gambling activity, the amount is usually not assessable income unless you are a professional gambler.

 

In deciding whether someone is a professional gambler, the courts consider issues such as:

  • Whether the activity is undertaken in a business-like manner
  • Whether the person has specialist knowledge associated with that gambling activity
  • The scale of operations.

 

For further guidance, you can have a look at Taxation Ruling IT2655 - Income tax: betting and gambling - whether taxpayer carrying on business of betting or gambling. This ruling can be accessed from our legal database.

 

If you're not sure what to do, as @macfanboy has correctly suggested, you can apply for a private ruling. Refer to the link that they have provided.

 

How this helps.

 

Thanks,

 

ChrisR

13 REPLIES 13

Taxicorn

Replies 0

You do not declare winnings or loses from gambling unless you are a professional gambler.

 

Even if you were, I would still get a private ruling from the ATO.

Most helpful response

ATO Certified Response

Community Moderator

Replies 7

Hi @LIANGWANG

 

Welcome to our Community.

 

@macfanboy is correct. When you receive an amount of money from a gambling activity, the amount is usually not assessable income unless you are a professional gambler.

 

In deciding whether someone is a professional gambler, the courts consider issues such as:

  • Whether the activity is undertaken in a business-like manner
  • Whether the person has specialist knowledge associated with that gambling activity
  • The scale of operations.

 

For further guidance, you can have a look at Taxation Ruling IT2655 - Income tax: betting and gambling - whether taxpayer carrying on business of betting or gambling. This ruling can be accessed from our legal database.

 

If you're not sure what to do, as @macfanboy has correctly suggested, you can apply for a private ruling. Refer to the link that they have provided.

 

How this helps.

 

Thanks,

 

ChrisR

Newbie

Replies 2

Hello ChrisR(ATO),

 

hypothetically speaking,

 

imagie i place a number of bets on The 2020 US Elections at The TAB

 

i outlay/bet $7000 & get a return of $43,000  

 

i am not a professional gambler & this is a one off win for me

 

do i have to declare the winnings to the ATO? and/or pay any tax on the winnings?

 

Thank you for info ChrisR

Community Moderator

Replies 1

Hi @Chris1320

 

The original response by @macfanboy is still correct. You don't need to declare winnings or losses from gambling unless you're a professional gambler. My previous response outlines what is looked at when working out whether you're a professional.

 

If in doubt, you can request an early engagement discussion with us, however it doesn't sound like you would have anything to declare in your hypothetical scenario.

Enthusiast

Replies 0

Thankyou for your help Chris,another question I need to ask,I have all my super in a bank account,I dont have a income comming in,I was sacked from work,because of my injury after 45 years ,I only live off the interest off my super that I live on and that's under what I earn a week,no goverment hand outs nothing 

Newbie

Replies 3

How about money won from offshore online poker? Winnings are withdrawn as Bitcoin, how do we report this after converting it to AUD on an online exchange?

Former Community Support

Replies 2

Hi @mig_xhad

 

You don't need to declare that as income if you're not a professional gambler but when you convert it to AUD it will be a capital gains tax event.

 

For instance, you win $100 in cryptocurrency in the morning, by the evening when you go to convert it to AUD, the price has been pumped to $110, and you need to pay $5 in transaction fees to convert it. Your cost base is $105, the market value of the bitcoin at the time you received it plus the transaction fee you incurred in disposing of it. You need to pay capital gains tax on the proceeds of the sale minus your cost base, which in this example will be $5.

 

Hope that helps.

Newbie

Replies 1

So do i still need to report this Capital gain even though my total taxable income is below 18000?

 

thanks for the help

ATO Community Support

Replies 0

Hi @mig_xhad

 

Capital gains make up your total income and don't determine alone whether or not you're required to lodge. 

 

See our website for the do I need to lodge a tax return tool.