poker winnings in Canada

My_question_is: Canadian-specific
Subject: poker winnings
Expert: taxman@centa.com
Date: Sunday February 11, 2007
Time: 06:25 PM -0500

QUESTION:

Dear David: This is reguarding playing poker. I'm up about 50K (cash)plus in
the pass three years playing poker. I haven't claim or files my taxes for
the pass 3 years, should i claim this money so i can put it in the bank and
use it for real estate investments.Otherwise i cannot put the funds in cause
i dont have a real job.I really dont mind paying taxes on it cause i dont
want to have issues with revenue Canada. This way i can deposit the funds
into the bank and do the deductible intrest investments.

Thank You in advance David

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david ingram replies:

I do a lot of US gambling returns and the odd Canadian return

In 2003 I did a 2002 return for a gent who wanted to report his earnings for
much the same reason you do. I said it was not taxable and he wanted to pay
anyway. We sent a cheque for about $25,000 to pay the tax on his skilful
playing.

The CRA sent the cheque back with the admonition (as if I did not know) that
gambling was not taxable in Canada.

If you want to report it, put it in on line 130 and take it off on line 256.
You have filed a tax return. That way you have given them the chance to see
the money and have something to show the mortgage company.

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