I intend to give money to a friend from UK who will be using the funds to play poker. Poker winnings are not taxed in the UK. I will assume entire risk if he loses the investment. If he makes a profit, he will keep 20% of the winnings and give me 80%. I on the other hand have to pay taxes for this foreign income. What category does this fall under? Does it fall under gambling winnings (though I'm not the one gambling)? Or is it returns from a partnership between him and I (as an investment and getting profit distributions)

Thanks in advance

I intend to give money to a friend from UK who will be using the funds to play poker. Poker winnings are not taxed in the UK. I will assume entire risk if he loses the investment. If he makes a profit, he will keep 20% of the winnings and give me 80%. I on the other hand have to pay taxes for this foreign income. What category does this fall under?=========>>>>>>>if the money given to him is treated as gifts then you need to file f 709 aslongas its amount exceeds $14K for 2014 and also aslongas the winnings given to you from him is treated as gifts, you do not need to pay tax on the winnings as gifts since you are a recipient.and you can’t deduct gambling losses as you gave him gifts.
If it is treated as p/s investment money for , then, gambling winnings are considered income regardless of how those winnings are sent there. you might be able to claim gambling losses if you itemize deductions.even if the money never makes it back to the US. yu are taxed on worldwide income even if that income is never brought back to the US. it would be based on the value in US$ when it was won.

Does it fall under gambling winnings (though I'm not the one gambling)?=======>>>>I guess it depends as mentioned above.

Or is it returns from a partnership between him and I (as an investment and getting profit distributions)=======>>>>>as mentioned above.