Many people who start UFC betting lose money when they start out betting but, if they stick with betting; they can win hundreds or thousands of dollars per match if they do proper research on fighters and manage their bankroll like a pro.
After winning money for a while from betting on UFC fights, or any other sports betting action, many people will start to think about the taxes that they have to pay on their winnings. Instead of running from the IRS or worrying about back taxes the average bettor can pay their taxes with confidence and continue betting on UFC fights if they follow the simple tips in this article.
Keep a Diary
Every professional gambler, even people who only bet occasionally, should keep a written diary of their gambling activities. This step will enable them to back up their income claims should the IRS come after them in an audit.
A gambling diary should be a complete record of wins and losses plus contain receipts, and recorded information for write off purposes plus money that you set aside after each win to pay your taxes.
Professional or Amateur?
There is a big difference between declaring yourself a professional or amateur gambler. The IRS comes after many professional gamblers who bet on UFC matches and NFL football games because, many professional typically under report their incomes and the IRS wants to get the most money out of them possible.
Amateur gamblers are often less sought after by the IRS because; amateurs typically don’t win as much as pros do and they can “fly below the radar”. Regardless of the classification of your gambling activities that you choose, make sure that you back up everything in writing and save all of your receipts because; the only person who can make a difference in an audit is YOU.