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The only types of online gambling sites that can legally be licensed in South Africa are online betting sites. However, that has not stopped many poker sites that are located in different countries of the world offering their real money poker games and poker tournaments to players based in South Africa. If you do live or reside in South Africa and you are looking to start playing poker online then the following guide should be of interest to you for we are going to enlighten you on a range of different licensing jurisdictions that license and oversee lots of different poker sites and will also answer a lot of the questions you may have regarding playing poker online for real money.
There are no doubt going to be many different questions that you may have in regards to starting to play poker games online, and with that in mind below we have put together several of the most commonly asked questions by players based in South Africa who are interested in giving poker playing in a real money online playing environment a try, you will of course find all of the answer to each question below also.
Lots of online poker players tend to play in this way and that ensures those players also have the maximum number of winning opportunities due to the sheer number of games they can play in one single session. The gambling venues licensed in South Africa are required to pay taxes, and those gambling sites based offshore and in other countries will be paying tax in the country where they are both licensed and based.
However, you will not have to pay any taxes on your winnings no matter how much you win when gambling online. You are usually required to make a deposit and will, if the bonus is of course a deposit match type bonus, have to play through your deposit and earn a certain number of player comp points before you bonus funds will then be added to your poker room account.
However, this bonus system is actually much fairer for in most cases when those bonus funds get added to your poker room account they will not come with any additional play through requirements, as you would have already achieved the play through requirements via your initial real money poker playing gaming action.
Gambling losses are indeed tax deductible, but only to the extent of your winnings. Find out more about reporting gambling losses on your tax return. This requires you to report all the money you win as taxable income on your return.
However, the deduction for your losses is only available if you are eligible to itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses.
The IRS requires you to keep a diary of your winnings and losses as a prerequisite to deducting losses from your winnings. The amount of gambling losses you can deduct can never exceed the winnings you report as income. To report your gambling losses, you must be eligible to itemize your income tax deductions on Schedule A.
You are eligible to itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. This means that if you claim the standard deduction, you are still obligated to report and pay tax on all winnings you earn during the year. However, you will not be able to deduct any of your losses.
The IRS does not permit you to simply subtract your losses from your winnings and report your net profit or loss. And if you have a particularly unlucky year, you cannot just deduct your losses without reporting any winnings. If the IRS allowed this, then it's essentially subsidizing taxpayer gambling. The bottom line is that losing money at a casino or the race track does not by itself reduce your tax bill.