Taxes and your roll...

[Triple B]

For all you pro/semi-pros out there...

Do you take money out of your roll for taxes as you go or do you leave it in your roll until the time comes?

Obv I am Canadian and may not have to pay taxes, but this is a grey area in Canadian tax law and I want to save money just in case.

As an example...say :
1) I am a winning 2/4 and 3/6 player with a roll of 30K.
2) I make 100K this tax year.
3) I pull out 40K for expenses, buying stuff.
4) My expected tax bill (if there is one) is 35K.

Scenario A: Leave money in roll - Now at the end of the year my roll is 90K. I would probably be playing 5/10 and taking shots at 10/20 at that point if I could beat it.

Scenario B: Take money out as I go - I would have a 55K roll and be OK (not great) rolled for 5/10, but I would reach this amount several months later than in A. I would have savings of 35K to pay taxes if needed. If I don't need to pay, I can invest the money long term, buy a new car, etc.


In A, I can play higher stakes faster and potentially make more money if I am able to move up with success. However, if I have to pay taxes and I haven't built my roll big enough by playing higher, then I have to move back down when I pull out almost 50% of my roll to pay taxes.

In B, I am conservative but I may not maximize my income. Also in B I would be earning modest interest on my money that I pull out (~4%)

Thoughts???

[black_knight6]

[kennyg]

[black_knight6]

[Triple B]

[geiststaat]

[black_knight6]

[Schuster]

[JohnSmith]

[GodlikeRoy]

[JohnSmith]

[GodlikeRoy]

[JohnSmith]

[GodlikeRoy]

[JohnSmith]