Rolling over winnings?

[Deadheadz]

Perhaps this has been asked before but I couldn't find such a thread...

Let's say, for the sake of argument, that I win the $1400 top prize in my Online Championship 12 team league.

Can I choose to take the prize as "store credit" and use the entire amount toward a 2014 Main Event entry and, potentially, avoid the need to deal with tax forms?

I'm a resident of Canada so I'm not even sure how or which forms I would use if I just wanted the cash.

Part 2 of the question:

Assuming I could rollover my winnings a into a new entry, what if I also win the $70,000 RotoWire prize? Could I ask that NFBC enter me in 20-30 different 2014 leagues using part of the prize money and just deal with the taxes on the remaining "net" winnings?

It's all hypothetical for now but I always like to be prepared.


Cheers!

[Greg Ambrosius]

Deadhedz, if you are in Canada you are already a fortunate one. You should know that.

As for rolling over prize money and not paying taxes on your "earnings", well, I don't think the IRS would agree with that and we aren't about to mess with the IRS. Everything you win each season gets reported to the IRS whether you decide to cash out now or later. Again, this is "earned income" and that gets reported to the government. Everything we have done through STATS is all cash in and all cash out after every single season. We don't put any of our customers in possible jeopardy by skirting taxes on rollovers. In fact, it's part of what happened badly in our industry with other fantasy companies.

That being said, we are in the process of creating an accounting page for every owner where you will have more say in how you want to use your prize money. We hope to have this in place by the end of the baseball season. In that account you'll have a visual of what you've earned, what you have coming to you and how much you want to be paid now and how much you may want to keep in your account for future games. It also would show you how much you owe for each upcoming season. This way you could more easily pay for future games with your winnings, but this isn't a tax avoidance setup. Everything you earned will still get reported to the government, which we just have to do. There's no two ways around it my friends.

I hope this helps. We'll have more details on the player accounts in the next couple of months, but it's all good there. Thanks for asking.

[Happenstance]

What does STATS report to the IRS - Gross Winnings or Net Winnings (i.e., winnings minus entry fees)?

[King of Queens]

What does STATS report to the IRS - Gross Winnings or Net Winnings (i.e., winnings minus entry fees)?

Gross earnings (i.e. the total of your prize checks) is reported to the IRS on a 1099-M

[CASS]

Right but for tax purposes itsn't it basically your gross winnings less expenses (entry fees) and that can include fees (losses) from 3 years back no? Dumb example. You win 20K this year. Your total entry fees are 4K. You lost 3k last year. your taxable winning are 13k. Is this valid or wrong?

[Deadheadz]

It's likely a matter for the tax return preparer not STATS LLC to figure these things out, just simply report the numbers.

I know that if I win a large sum at a Las Vegas casino there is a form (as a Canadian) I fill out to claim an exemption from taxes and the portion the casino withholds is retuned to me eventually. I was hoping this was true as well with NFBC winnings.

I'm not sure how to deal with the tab on the NFBC website that leads to the tax information page. Nothing seems to apply to my situation.

[Money]

Right but for tax purposes itsn't it basically your gross winnings less expenses (entry fees) and that can include fees (losses) from 3 years back no? Dumb example. You win 20K this year. Your total entry fees are 4K. You lost 3k last year. your taxable winning are 13k. Is this valid or wrong?

You start off with the gross earnings and then use the appropriate tax form to write off everything associated with competing in these leagues. These include, vegas trips, subscriptions, entry fee's etc... As far as writing off previous years losses against this years earnings, I'm not sure that will fly.

A good tax guy goes a long ways in reducing the tax liability.

[Greg Ambrosius]

It's likely a matter for the tax return preparer not STATS LLC to figure these things out, just simply report the numbers.

I know that if I win a large sum at a Las Vegas casino there is a form (as a Canadian) I fill out to claim an exemption from taxes and the portion the casino withholds is retuned to me eventually. I was hoping this was true as well with NFBC winnings.

I'm not sure how to deal with the tab on the NFBC website that leads to the tax information page. Nothing seems to apply to my situation.

We do not withhold any prize money; we pay you exactly what you have won in our contests. You don't have to fill out a W-9 as a Canadian resident. Lucky you. Keep on winning.

[Glenneration X]

Please send any winnings I may achieve this year to my new Canadian address.

[Edwards Kings]

One question. What is this "winnings" everyone keeps talking about?

[Roy's Outlaws]

Please send any winnings I may achieve this year to my new Canadian address.

Hey Glenn, Can I rent a room at that Canada address.




As far as taxes go, The IRS consider fantasy winning as a HOBBY,WHERE AS YOU CANNOT EXPECT TO EARN A PROFIT. Therefore you can only deduct expense from that season only (No carryover of expenses) and they cannot exceed winnings

[Atlas]

Please send any winnings I may achieve this year to my new Canadian address.

Hey Glenn, Can I rent a room at that Canada address.




As far as taxes go, The IRS consider fantasy winning as a HOBBY,WHERE AS YOU CANNOT EXPECT TO EARN A PROFIT. Therefore you can only deduct expense from that season only (No carryover of expenses) and they cannot exceed winnings

My expenses exceed my winnings.

[Rog]

so let me get this right, some of you make a profit at this
I am happy if I can break even or lose just a little
which reminds me ,didn't I hear something about a page that will actually show what I paid in and what I won each year?

[Greg Ambrosius]

so let me get this right, some of you make a profit at this
I am happy if I can break even or lose just a little
which reminds me ,didn't I hear something about a page that will actually show what I paid in and what I won each year?

Yup, that will be unveiled very shortly for all of our participants. We are just finalizing that now. It looks great and will give you some options on how to get paid and how to pay for future contests. And best of all it will show all your payments for the year and your winnings per sport. It will be a real nice addition to your team pages. Coming very soon.

[Rog]

I need to make sure my wife never finds a way to see that page or my (hidden teams)page.

[Deadheadz]

Deadhedz, if you are in Canada you are already a fortunate one. You should know that.

we are in the process of creating an accounting page for every owner where you will have more say in how you want to use your prize money. We hope to have this in place by the end of the baseball season. In that account you'll have a visual of what you've earned, what you have coming to you and how much you want to be paid now and how much you may want to keep in your account for future games. It also would show you how much you owe for each upcoming season.

Any news on this upcoming feature Greg?


Cheers!

[Gates]

Please send any winnings I may achieve this year to my new Canadian address.

Excellent idea Glenn

Glenn please use my home address in record, it Will be my pleasure to "help" you...
$$$

Gates

[Greg Ambrosius]

Deadhedz, if you are in Canada you are already a fortunate one. You should know that.

we are in the process of creating an accounting page for every owner where you will have more say in how you want to use your prize money. We hope to have this in place by the end of the baseball season. In that account you'll have a visual of what you've earned, what you have coming to you and how much you want to be paid now and how much you may want to keep in your account for future games. It also would show you how much you owe for each upcoming season.

Any news on this upcoming feature Greg?


Cheers!

I should have an update on this soon. It definitely will be available before end of NFBC season.

[joshguy]

Would you be able to offer any sort of discount if we just kept our winnings in our NFBC account for next season since there wouldnt be any credit card fees associated with those charges.

[Greg Ambrosius]

Would you be able to offer any sort of discount if we just kept our winnings in our NFBC account for next season since there wouldnt be any credit card fees associated with those charges.

I guess anything is possible, but the Player Accounts aren't being set up as a savings plan for STATS. It's being set up as a convenience to you the players who may just want to cash out part of your winnings and keep the rest aside so that you don't have to pay everything again via check or credit card. I mean, many of you know about how many leagues you're going to play in next year and maybe it's better to tell the Mrs. you won $10,500 instead of $15,500 and keep the $5,000 on account for next year's 3 Mains and something else!!

It's also being set up as an easy accounting guide for all of you. This way you know exactly what you've spent, what you still owe, etc. So it will show how much you've paid, how much you've won and then allow you to tell us how much you want to receive. We're not avoiding any taxes because whatever you won will be reported to the IRS no matter how much you cash out, but it's a more transparent accounting process and one that allows you to do whatever you want with your winnings.

We are still "All Cash In, All Cash Out", but you can tell us how to distribute those cash winnings now and if we should use some of it for next season. That makes it easier on everyone and the little savings we might get on credit card fees really isn't a factor on why we're doing this. It's convenience over any savings.

[joshguy]

maybe it's better to tell the Mrs. you won $10,500 instead of $15,500 and keep the $5,000 on account for next year's 3 Mains and something else!!

Ha ha! Agreed, the less she knows the better!

[Glenneration X]

Please send any winnings I may achieve this year to my new Canadian address.

Excellent idea Glenn

Glenn please use my home address in record, it Will be my pleasure to "help" you...
$$$

Gates

Ha Gates!

I think there's an old saying that applies here. If I had your winnings, I'd burn mine.
Catch you soon my friend and I hope all is well north of the border.

[Deadheadz]

Greg, I'm wondering again about using my 2014 winnings toward my 2015 NFBC entries.

Assuming we start up the DCs in early November again, there's not much time at all between the payout and the billing of the new contests. Can we designate all or a portion of our winnings to pay for future entries?


Cheers!

I guess anything is possible, but the Player Accounts aren't being set up as a savings plan for STATS. It's being set up as a convenience to you the players who may just want to cash out part of your winnings and keep the rest aside so that you don't have to pay everything again via check or credit card. I mean, many of you know about how many leagues you're going to play in next year and maybe it's better to tell the Mrs. you won $10,500 instead of $15,500 and keep the $5,000 on account for next year's 3 Mains and something else!!

It's also being set up as an easy accounting guide for all of you. This way you know exactly what you've spent, what you still owe, etc. So it will show how much you've paid, how much you've won and then allow you to tell us how much you want to receive. We're not avoiding any taxes because whatever you won will be reported to the IRS no matter how much you cash out, but it's a more transparent accounting process and one that allows you to do whatever you want with your winnings.

We are still "All Cash In, All Cash Out", but you can tell us how to distribute those cash winnings now and if we should use some of it for next season. That makes it easier on everyone and the little savings we might get on credit card fees really isn't a factor on why we're doing this. It's convenience over any savings.

[Greg Ambrosius]

Greg, I'm wondering again about using my 2014 winnings toward my 2015 NFBC entries.

Assuming we start up the DCs in early November again, there's not much time at all between the payout and the billing of the new contests. Can we designate all or a portion of our winnings to pay for future entries?


Cheers!

I guess anything is possible, but the Player Accounts aren't being set up as a savings plan for STATS. It's being set up as a convenience to you the players who may just want to cash out part of your winnings and keep the rest aside so that you don't have to pay everything again via check or credit card. I mean, many of you know about how many leagues you're going to play in next year and maybe it's better to tell the Mrs. you won $10,500 instead of $15,500 and keep the $5,000 on account for next year's 3 Mains and something else!!

It's also being set up as an easy accounting guide for all of you. This way you know exactly what you've spent, what you still owe, etc. So it will show how much you've paid, how much you've won and then allow you to tell us how much you want to receive. We're not avoiding any taxes because whatever you won will be reported to the IRS no matter how much you cash out, but it's a more transparent accounting process and one that allows you to do whatever you want with your winnings.

We are still "All Cash In, All Cash Out", but you can tell us how to distribute those cash winnings now and if we should use some of it for next season. That makes it easier on everyone and the little savings we might get on credit card fees really isn't a factor on why we're doing this. It's convenience over any savings.

Correct, your Player Accounts this year will allow you to tell us how much you want to get paid via check and how much you want to keep in your account for future payments. You can leave it all in your account if you'd like to pay off future NFBC and NFFC winnings. That's the goal.

We still have to report your complete winnings for 2014 to the IRS, but how you want to use it is up to you. Hopefully everyone will have plenty of winnings to roll over into 2015 events. And yes, we'll have the Draft Champions leagues rolling before Thanksgiving this year and hopefully shortly after the World Series. Good luck all and enjoy.

[mattjb]

I have to say I am dubious about how fanduel report winnings.

Firstly it's only if you cash out and secondly it's done on net winnings.