gambling winnings

I have several accounts in off-shore sportsbooks. I have amassed a total of over $50,000 and now would like to quit my day job and live off my sports betting income. With my bankroll of 50K, I expect to win 100K a year. Since the off-shore books don't report any of this, what should I report? Withdrawals will be made periodicly thru-out the year. Some withdrawals will be simply for transferring funds to another book. I don't look as it as winnings until I have it in my pocket and refuse to pay taxes on winnings still in a volatile off-shore account. Any tips or advice?

You are liable for tax on all your winnings, and you can deduct your losses against the winnings. I don’t know how likely the IRS is to catch this, but if you do not declare the winnings and they do find out, you are in trouble.

Perhaps you should seek private counsel in this.

[Seanscott]

When a gambler wins a big payoff at the horse races, he goes around and picks up all the losing tickets from the trash.

He can claim these as his losses to offset the winnings he has to claim as income.

I'm sure it's illegal, but that's one way people get around paying tax on the big winnings.

It might be a good idea to make sure those tickets you pick up do not have shoe prints on the back :-).