Gambling winnings Tax question(s)

[Betallsports]

Still reportable income BAS

I hear ya.. But really, what percentage of Players ( Not Pro ) Report it ?
Guess if they lose every year, it might be worth it. But is it worth the trouble ?? Will it Open a can of worms ? or does it not matter to the IRS where you gambled ?

I could understand on your end... I believe you list or Read that you list yourself as a professional gambler.
also know a few guys that do this.... and Guess it works for them

 

[applejax]

This, as stated earlier, a diary is sufficient for writing off losses UP TO THE AMOUNT of one's winnings.


For those that do not believe that only a diary is needed, the year I was audited, had close to $2,000,000 in winnings reported on LINE 21 with losses deducted on Schedule A.............had about 27 or so "signings" that year as I recall totaling around $100,000.

what do you mean by signings?

 

[Fishhead]

I hear ya.. But really, what percentage of Players ( Not Pro ) Report it ?
Guess if they lose every year, it might be worth it. But is it worth the trouble ?? Will it Open a can of worms ? or does it not matter to the IRS where you gambled ?

I could understand on your end... I believe you list or Read that you list yourself as a professional gambler.
also know a few guys that do this.... and Guess it works for them

You're correct, overall, the percentage has to be very, very low..................under 1% I'm guessing.

 

[applejax]

Still reportable income BAS

Yes, winnings from offshore are reportable income, cant they say betting on sports on the internet is not legal and dont accept your losses? and make you pay tax on all your winnings?

 

[Fishhead]

what do you mean by signings?

Any slot or video poker jackpot of $1200 or more requires one to sign a W-2G tax form

 

[applejax]

FACTA: http://www.iexpats.com/fatca/

Foreign Account Tax Compliance Act, also known as FATCA, guides foreign financial institutions through the steps they must take to ensure any of their clients who are US taxpayers declare all earnings or profits from offshore assets on their tax returns.

 

[Fishhead]

FACTA: http://www.iexpats.com/fatca/

Foreign Account Tax Compliance Act, also known as FATCA, guides foreign financial institutions through the steps they must take to ensure any of their clients who are US taxpayers declare all earnings or profits from offshore assets on their tax returns.

Yes, this is a law many and most are not aware of.............even by many high rolling tax paying offshore sportsbettors and pokerplayers

 

[RenoChazz]

As far as one filing as a "professional" or as a "recreational" player, that is a LONG discussion for another day.

and not worth the headaches unless you're a poker player that travels around the world. Much better off claiming to be a recreational player if it's just sports and local stuff.

 

[Willie99]

What is wrong with a fake diary? What is the difference?

you should be careful there

you have to be able to prove you were where you said you were, and there better not be evidence you were someplace else

for example, if you claim to have been at Foxwoods on a certain day or time, there better not be an ATM withdrawal in DC.

lots of things can go wrong

 

[applejax]

Fishhead,

if you place over 50 wagers in a day(college hoops, nba, cokkege football) do you really write all of them in your diary? or just the amount you won and lost

 

[hockeysnotdead]

Last year I had to sign for 3 wins totaling about 6k. I lost way way more then that. I do not own a house so I take the standard deduction on my taxes instead of itemizing deductions. Because of that my cpa said I have to pay the taxes on the 6k even though i could prove I lost much more then 6k. Anyone know if there's a way around this? I'm going to run into the same problem for 2012 Damn slots! No more slots in 2013 on tables

 

[Jstack34]

Last year I had to sign for 3 wins totaling about 6k. I lost way way more then that. I do not own a house so I take the standard deduction on my taxes instead of itemizing deductions. Because of that my cpa said I have to pay the taxes on the 6k even though i could prove I lost much more then 6k. Anyone know if there's a way around this? I'm going to run into the same problem for 2012 Damn slots! No more slots in 2013 on tables

Nope, unless you pay a lot of state taxes or give enough away to charity to take itemized deductions

 

[mnmike]

Last year I had to sign for 3 wins totaling about 6k. I lost way way more then that. I do not own a house so I take the standard deduction on my taxes instead of itemizing deductions. Because of that my cpa said I have to pay the taxes on the 6k even though i could prove I lost much more then 6k. Anyone know if there's a way around this? I'm going to run into the same problem for 2012 Damn slots! No more slots in 2013 on tables

In order to itemize you need your deductions to be greater than the standard deduction, unless if you have almost no taxes(state and real estate) along with charitable contributions that are deductible, that 6K should easily put you over the threshold , sounds like you need a new accountant.

 

[Jstack34]

In order to itemize you need your deductions to be greater than the standard deduction, unless if you have almost no taxes(state and real estate) along with charitable contributions that are deductible, that 6K should easily put you over the threshold , sounds like you need a new accountant.

Not if he is MFJ

 

[mnmike]

Not if he is MFJ

Huh? obviously if he's under the threshold, he will get only limited gain by deducting his gambling losses, say 3k to reach the threshold and 3K over it.

 

[Jstack34]

Huh? obviously if he's under the threshold, he will get only limited gain by deducting his gambling losses, say 3k to reach the threshold and 3K over it.

Just saying mfj standard deduction is like 12k so he would need a decent amount of extra stuff over the 6k winnings that he apparently doesn't have

 

[mnmike]

Yup, I was figuring he was single, the single ded. is 5950 this year(last year), if he does file single he would definitly get at least some benefit.

 

[hockeysnotdead]

Thanks for the responses. yes single, no house payment and no student loans to deduct interests. Self employed. Some charity receipts but not many. We ran it as itemized and I owed like $150 more. I trust they know what they are doing since they do the business taxes as well but I found it hard to believe I still was going to get stuck paying on the gambling even though I was a loser for the year. I guess it is what it is. No More Slots until I buy a house.

 

[mnmike]

Thanks for the responses. yes single, no house payment and no student loans to deduct interests. Self employed. Some charity receipts but not many. We ran it as itemized and I owed like $150 more. I trust they know what they are doing since they do the business taxes as well but I found it hard to believe I still was going to get stuck paying on the gambling even though I was a loser for the year. I guess it is what it is. No More Slots until I buy a house.

Do not listen to your accountant, if you are single you will be able to deduct at least some of that 6k, you do have some taxes, at least sales tax, plus car license, plus charity, then the big plus of the losses offsetting the win.That is easily over the $5950 standard deduction. At least do that one schedule yourself to see if they are right , if you cant do that then you are hopeless.

 

[Fishhead]

Do not listen to your accountant, if you are single you will be able to deduct at least some of that 6k, you do have some taxes, at least sales tax, plus car license, plus charity, then the big plus of the losses offsetting the win.That is easily over the $5950 standard deduction. At least do that one schedule yourself to see if they are right , if you cant do that then you are hopeless.

As stated earlier, the majority of CPA's one will encounter will have very little experience in handling gambling taxes.