If you won $8.9 Million at the World Series of Poker..

Last night I made plans to watch the World Series of Poker final table from Las Vegas. Being an avid poker fan I enjoyed watching the complex poker play unfold with 9 individuals who were going to win anywhere from $900K - $8.9Mil depending upon where they finished. As the action unfolded the table dwindled down to one player, Jonathan Duhamel as the champion and winner of $8.9 Million dollars. Being the sick and twisted IRA investing enthusiast as I am, I wondered how much in taxes he was going to have to pay (not only that but being from another country, Canada, what additional taxes might incur) out of those winnings to actually be his.

It got me thinking, could he have kept those winnings in the IRA and not pay taxes on it? Let's explore the possibilities, and for example sake we assume he is American and has an IRA:

Option #1. Could he have used money from his IRA to pay his entry fee of $10,000.00 and have the IRA own the entry fee? Not in this case. His IRA would own something that he is an active participant in.

Option #2. Could he have sold his entry to fee to someone else and given them a percentage of the winnings? Now there is an idea. Sell your entry fee to someone when you know you are in the money or at the final table. You as the IRA holder make money tax free.

Option #3. Sell an option of your entry fee to someone and give them various prices to purchase your entry fee depending on where you finish. For example, you would give a financier an option to buy your entry fee for $1Mill if you finish 9th - 6th in the tournament. You would give them an option to buy your entry fee for $2Mill if you finish 5th-3rd and $Mill to purchase your seat if you finish 1st or 2nd.

Now those are some amazing options!!

If this example is too complicated because I made assumptions about poker let me know. Why am I writing a post about poker on a real estate site? Its simple. I want to show you a creative way to use your IRA. Maybe this non-real estate example, will give you some real estate deal making ideas.

As always, your comments and feedback are greatly appreciated. 

Kevin Kaczmarek is the founder of Capital Blueprints, LLC an IRA education and investment company in Carmel, IN. Recognized as an innovative thinker, teacher and business leader Kevin helps others achieve their financial goals with Self Directed IRA Investments, and Passive Income Strategies. Kevin can be reached at [email protected] or 317-564-4820