Fishhead- One Last question about this?

[Whoson1st]

You seem to be the most knowledgeable poster in this area, but anyone else that has experience please add to it.

A Diary or a Ledger?

For all of 2004, I have kept a very neet ledger of all my sports bets. It is quite detailed. It is totaled on a month to month basis and shows a LOSS as of the end of Oct. (This has been a royal pain the ass for a recreational player like myself and the amounts are no big deal at all. ) All these figures can be proven by bank statement via Neteller. This is what I don't understand--Since Neteller is ONLY used for gaming purposes, why would there be any reason for me to continue to keep this? In other words, is the IRS more interested in what the actual bets WERE? Obviously Neteller does not show that. But is a ledger just as good as a diary?

Also--you say no need to keep loosing tickets (I'm assuming talking about horse racing) Would a diary need to show for example. Won $25 on horse 6 in the 2nd at Belmont, Lost $10 on the 7 horse in race 3 at belmont and on and on and on? Or would it just need a daily summary?

Actually--I've asked more than one question.

 

[Fishhead]

Your ledger as you described can be described as a diary...........yes.

Under the following conditions that you outlined in the second part of your question.

Your ledger/diary should be as detailed as it can be without it being a royal pain in the *ss and time consuming..............but the pain and time you put into it will be worth it.

The very MINIMUM criteria you need to include are the following.......

DATE---9-22
ORIGIN OF WAGER........PartyPoker
WHAT WAS BET........4-8 Hold'em
WON OR LOST.......<-280> or +280

or

Date............9-22
ORGIN........PINNACLE
BET........CELTS -3
W/L............+500

Anything else is frosting on the cake for you and the IRS.

Use a 6-10 column ledger to record this on a daily basis..........in one straight across line.

Have a SEPERATE page for each gambling activity.........SPORTS, POKER, BJ, SLOTS, VIDEO POKER, ETC., with a running NET total of each activity for year to date.

Then I have a completly different sheet for my personal records that records my current running NET WIN OR LOSS for the year..............again, this is just for my personal benefit............thus know EXACTLY how I stand on the year to date. Obviously if adding up all the NET individaul activities as stated above, it should equal my running year-to-date total.

 

[Whoson1st]

Thank you Fishhead.

Let's role play for a second here.
Tax Auditor: "Mr. X Can you explain this income of $3000. from Neteller on your bank statement"?
Me: "Yes it is from Online gaming and if you continue sir you will see that I sent Neteller $3500. I lost $500."
Tax Auditor: "Can I see your diary to prove this"?
Me: "Why yes, here it is showing the plays made".

Tax Auditor: "I see you bet on the Boston Red Sox and I'm a Yankee fan, I don't think these are accurate records"

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I'm just showing how ridiculious this seems to me. Maybe--I'm missing something.

 

[Fishhead]

Actually, the entire IRS procedure is mostly silly.

Think most AMERICANS will agree with that.

To bad there cannot be a better way.

The only alternative is to move.

 

[Fishhead]

UNDERSTAND THIS ALSO..........WE USUALLY ONLY TALK ABOUT FEDERAL TAXES HERE BUT STATE TAXES NEED TO BE PAID ALSO ON GAMBLING...............BELIEVE ONLY 5 STATES ARE EXEMPT FROM STATE INCOME TAXES.

THANK GOD I HAVE LIVED IN TWO FOR THE MAJORITY OF MY TAX LIFE........NEVADA and FLORIDA.

Hopefully will never live in a state with state income tax ever again.

 

[blueedwards]

here's my theory:

fishhead has never paid a penny of taxes on gambling winnings. he is only saying we should all pay taxes on gambling income because he knows the feds are watching this site.

 

[Fishhead]

I know many people that subscribe to the IRWIN SCHIFF school of thought and NEVER pay one penny to the IRS..........EVER!

http://www.paynoincometax.com/irwinschiff.htm

 

[Mr.Smith]

.

I take all of my tax advice from David Lettermans top ten lists.

For instance, last year instead of sending in restaurant receipts for business luncheon deductions, I mailed in all the pizza crusts instead

 

[Whoson1st]

Thanks to all. I WANT to pay every single penny that I owe in taxes. My point is the burden of paperwork for what is very small potatoes is where I am upset.

They make what is recreational--become a burden in paperwork.

 

[Whoson1st]

Fish-

As for buying that book, I appreciate the suggestion. But, I'll take you and others that have posted here as knowing how it works. I must keep a diary-ledger. That I am doing. Plus, paying Jackson Hewlett; when it should be their responsibility to know the CURRENT laws on the subject.


Also, is the burden of proof on the taxpayer to prove his ledger is honest or can the IRS simply say--for whatever reason, they don't BELIEVE it?

 

[TheGeneral+]

Fish, Let's change our tax meeting to March 15. The 1st is not good for me.

Thanks

 

[Fishhead]

Fish, Let's change our tax meeting to March 15. The 1st is not good for me.

Thanks

No problem buddy!

My time is never valuable.