As a deduction, yes, but not as a credit.
I have no idea what the appeal is. I watched it once and hated it for its mindlessness and complete lack of skill requirements other than to be able to count to 26 or whatever it is. Absolute drivel.
There certainly is skill involved. Being able to calculate in your head the various risks and potential rewards of your choices is a big deal. Having .01 and $1,000,000 left is a much different situation than having $750,000 and $250,000 left, even if the expectation is about the same.
Deciding whether to press on means being able to figure out the worst-case bank offer if you choose badly, the best-case bank offer if you choose well, and the relative odds of both choices. It’s not about going for the million dollars or believing that it’s in the case you picked. It’s all about the next decision. Very few contestants seem capable of doing that analysis, because a lot of them make very bad choices.
Oh. Crap.
-FrL-
I’m not a tax expert but my partner is a tax accountant. I can’t talk to her right now. She’s busy with various returns due in by 31 January, and any interruption to this process will not be received kindly.
She maintains that the Inland Revenue’s decision not to tax individual gambling revenue is based on the likelihood that, for the vast majority of punters, their losses will exceed their profits over a period of time. If profits are taxed one year then losses incurred in the following year(s) could be defrayed against those profits, and refunds would have to be given. The Inland Revenue is not noted for its willingness to give back more than it receives.
The exclusion of lottery and game show profits from the tax equation in the UK is probably based on this argument, despite the fact that most winners are unlikely to re-invest their returns in related enterprises.
If an individual, for whatever reason, describes his occupation as ‘Professional Gambler’ or something similar on his tax form then I understand the rule differs. An individual is taxed on the profits of his primary occupation or trade, and as such he would be required to stump up some cash for the Treasury coffers.
For the avoidance of doubt, businesses are treated differently. A bookmaker or a casino owner is taxed in the normal way on the profits of a primary occupation.
I have seen so many people on that show refuse to take a deal saying “I’m going for the million!”
What exactly do they think the chances are that they’ll get a million dollars?
-FrL-
Begging her pardon, but she’s mistaken in at least one case: with the National Lottery and Eurolottery, you pay the tax up front (it’s part of the government’s take).
And don’t forget that the government taxes the bookie’s profits and the salaries of their staff.
Sure, 12p in the £ goes to the Treasury up front in these cases. But you pay that tax win or lose. You aren’t penalised for winning a prize, and we are discussing taxation of profits deriving from such enterprises.
I think I made that clear.
Well, on one hand…you’ve got “deal”.
On the other…“no deal”.
I’m glad I could help out.