JohnTChance Wrote:
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> Ezgoer89,
>
> Also, in one scenario, the IRS immediately
> withholds 12k of a 48k take. You lawfully report
> it later, perhaps to have some or all of it
> refunded to you. In another scenario, a bettor
> takes the entire 48k home with him, puts it in the
> bank, gets interest on it, and lawfully reports
> the episode later to the IRS. Which scenario is
> better? Personally, I prefer to pay later and take
> the interest.
Well, find me a horseplayer who walks out of a track with $48k and and subsequently places it in the bank to get 3% interest in a six-month CD. Assuming you can find a horseplayer who would do this, you now make about $750 (minus eventual taxes) in interest to take off the $12k bill you owe for the $48k total win.
Let's take the more common situation where someone gets to take home the $48k, blows a good part of it, doesn't save $12k for taxes, and gets in financial trouble on April 15. That's not a good scenario.
Risk v Reward?
