JIm,

You don't know me, but I was involved in the discussion where the issue was raised. I understand all you said, but the original discussion was whether a person who won a seat in a satelite had to pay taxes on it (the value of the prize).

The answer in the Las vegas Advisor (which I agree with) said that if a person won a satelite, but was then eliminated from the tournament (WSOP Main Event was the example) it was a wash. The prizer had a value of $10K, the cost of the seat was $10k, loss offsets income.

I further made the point, that if a player (not casino) wins money in a tournament, even a small amount, he is still bound to report the net increase in wealth (regardless of whether the casino is obligated to report the win or not).

Would you not agree with that?

Aaron M. Peacock
Attorney at Law