What would you do?

[TXtourplayer]

Just for funny let's say you make the final table at next week's Hilton and all seven finalist deside to work a deal between them.

What deal would you agree to? 5 options below.

"FINAL'S (NORMAL) PAYOUTS"

1st = $1,000,000

2nd = $ 40,000

3rd = $ 25,000

4th = $ 15,000

5th = $ 10,000

6th = $ 5,000

7th = $ 3,000

A) No Deals, I want to play for the $1,000,000 and will take my chances.

B) 1st get's $798,000 and 2nd-7th get $50,000 each.

c) 1st get's 648,000 and 2nd-7th get $75,000 each.

d) 1st get's $498,000 and 2nd-7th get $100,000 each.

e) everyone splits it up for $156,857 each. (round off)

I think I like "B", $798,000 is still a hell of a lot of money and in case I did get beat I'd still be making and extra $10,000 then the normal 2nd would pay.

 

[KenSmith]

I voted B, but I also like a $858,000 first and $40K for every one else split even better.

 

[TXtourplayer]

Ken, your a greedy Bas%@&#....LOL!

You wouldn't even give the others an extra $10,000 each in the finals? What's $60,000 to a man that just win's $798,000.

Remember the saying "A bird in the hand", what if you finished 2nd?

If I was lucky enough to win the whole thing and had to give $300,000 away split with the other players, I would be crying all the way to the bank...LOL!

 

[gflan]

How would a split work?

I sure hope to worry about a decision like that! I know that LVH states that they won't be a party to any "private arrangements" but are they prohibited?
Are they put in writing? Would it stand up to legal scrutiny? What if the winner backed out? How do you handle the IRS issues?

More than likely, I couldn't be a party to any deal because my husband won't feel comfortable with any "handshake deals". Would you more experienced players really consider something like this? HELP Please!

 

[tahoewolf]

IRS Issues

I know that LVH states that they won't be a party to any "private arrangements" but are they prohibited?
Are they put in writing? Would it stand up to legal scrutiny? What if the winner backed out? How do you handle the IRS issues?

I've wondered about that one myself. How do you handle disbursing $50,000 to a bunch of other players? Issue them 1099's? As what type of transaction - service, goods, etc? So many problems when I end up with that big check.

Now if I'm only lucky enough to get drawn in as a wildcard on Thursday night! Stanford Wong was drawn in last year and he only had one ticket.

 

[TXtourplayer]

How to handle deals for the Hilton

Yes, the Hilton won't split the winnings. This way they are not responsible should someone back out of paying.

Yes, it is okay to work up a split between the finalists.

Yes, it is legal.

Yes, someone could back out of paying you. (more details below)

If I make the finals I will come with the following:

1) 7 - contracts (one for each of the finalist)
2) 6 - 1099 tax forms (misc. income)

I will make sure all the contracts are signed prior to the start of the final round. This will be the best way to protect yourself for taxes proposes should you win and to assure your extra money (from the winner) should you come in 2nd-7th. I would also make sure the 1099's are all filled out and make copies of their drivers license and social security cards before paying them a dime. This protects you; if they don't want to provide that information then no money is paid out it is that simple. Think about it, if they don't give all their tax information to you, you will be liable for the $202,000 your paying out of your winnings for the taxes on that amount.

What happens if the winner backs out of paying you?

You have to take them to court, bad thing is they have a million dollars to fight you and by the time it gets to court the money could be all gone or at least hidden very well.

Of course in my case I would send flowers to his/her spouse for their funeral
because I'd kill them...LOL.

 

[tirle_bj]

other options

TXtourplayer, good idea, but there are no options, where 2nd, 3rd,..., 7th are getting different prizes.
So you can ad for example:
1st - $500,000
2nd - $200,000
3rd - $150,000
4th - $100,000
5th - $ 75,000
6th - $ 50,000
7th - $ 25,000
Also there should be "NONE of the above" and "OTHER"
My vote is for above mentioned option. Actually the decision will be based pretty much on the skill of the other finalists.

 

[TXtourplayer]

That is the point

With $1,098,000 in the finals why not let everyone make the same except for the winner.

I understand your proposal, but I wouldn't be interested in giving half of my winnings away if I won the million. I would be willing to gambling for 1st place, but like to know going in that I am going to walk away with minimum of $10,000 more then current 2nd place payouts ($40,000 normal 2nd place).

Should I lose out I would still make $50,000 and that is not to bad for a weekend...lol.

 

[Acquirer]

Tax ramifications

Unless someone knows something different the taxman will look to the overall winner to pay ALL appropriate taxes on the full "advertised" amount and is not interested in any deals cut at the table or after.

Has anyone heard of a different way to split pots but not run into tax issues with Uncle Sam?

 

[KenSmith]

Has anyone heard of a different way to split pots but not run into tax issues with Uncle Sam?

I assume that issuing 1099 forms to the recipients of the lower place bonuses would suffice for handling the tax issue. You would need the social security numbers of course.