{"id":35,"date":"2019-06-26T14:11:57","date_gmt":"2019-06-26T14:11:57","guid":{"rendered":"http:\/\/taxpaws.com\/?p=35"},"modified":"2019-07-15T15:31:34","modified_gmt":"2019-07-15T15:31:34","slug":"esmeraldas-american-holiday-what-happened-in-vegas-followed-her-home","status":"publish","type":"post","link":"https:\/\/taxpaws.com\/index.php\/2019\/06\/26\/esmeraldas-american-holiday-what-happened-in-vegas-followed-her-home\/","title":{"rendered":"Esmeralda’s American Holiday: What Happened in Vegas Followed Her Home"},"content":{"rendered":"\n

I remember talking to Esmeralda about her \u201cstrategic tax planning\u201d and how she hasn\u2019t had a trip in over 25 years. She had mentioned going to Vegas to kill two birds with one stone. \u201cI want to travel and build wealth and this can all be accomplished by going to Vegas\u201d. <\/p>\n\n\n\n

She had enjoyed her trip except one minor detail \u2013 she was taxed on her poker winnings \u2013 she had a very good winning streak, the best in her life. Boy, she was mad as could be. \u201cI win $100 000.00 and I only get to come back with $70 000.00, what the heck\u201d, she was screaming at this point. \u201cThey take my money, they give me this stupid form (1042-S), and they expect me to be happy! How can I be happy?\u201d<\/p>\n\n\n\n

She did not like my explanation in the least \u2013 things are different in Vegas or anywhere else in the United States when people like to plan their retirement \u201cEsmeralda style\u201d. It is a fact that US sourced income from gambling and lotteries is fully taxable \u2013 with the exception of a few \u201cexempt games\u201d. \u201cWhat are those games? I lost $30 000.00 and don\u2019t like it\u201d. For information and planning purposes the exempt games<\/em> are: craps, blackjack, big-6 wheel, roulette, or baccarat. The general rule was a surprise to Esmeralda, as it is to many other gamblers from around the world. Non US persons (nonresident aliens) are generally subjected to a 30% tax with holdings on gross gambling winnings. Canadian citizens and residents are able to get some or all of this money back due to a special provision in the tax treaty \u2013 U.S. \u2013Canada Tax Treaty Article XXII (3) \u2013 under the condition that they file a US return, the 1040NR. Canada\u2019s relationship with the US is so special that there is a special place on the 1040NR just for us.<\/p>\n\n\n\n

In my next post \u201cEsmeralda Want\u2019s Her Money Back\u201d, I will explain to Esmeralda, how to go about recovering some or all of the money and what she should do if she gambles in the future \u2013 and knowing her \u2013 it is going to be sometime soon.<\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"