Question for Fish

[bigbet1234]

Hey, we were talking one afternoon about filing taxes. if it is to personal you can email me, bigbet1234@yahoo.com

one quick question. do you file as a pro-gambler?

 

[Dante]

BB,

the guy files as a slot machine and has to wear a state tax sticker and license on himself at all times being he hits the 97% cash back

 

[Fishhead]

BIGBET- The only advantage to filing as a professional gambler is that you may then deduct expenses that are the direct result of your gambling ventures(cost of flight to bash for example).

You will also be required to pay self-employment tax.

I have found it is in my personal best interest to NOT file as a professional gambler, but rather just to report my WINS on line 21 and deduct whatever losses that I occur.

Also, by doing this, you will have a much less chance of being audited by the IRS.

 

[bigbet1234]

do you have any other type of income? regular job, etc.?

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by FISHHEAD:
BIGBET- The only advantage to filing as a professional gambler is that you may then deduct expenses that are the direct result of your gambling ventures(cost of flight to bash for example).

You will also be required to pay self-employment tax.

I have found it is in my personal best interest to NOT file as a professional gambler, but rather just to report my WINS on line 21 and deduct whatever losses that I occur.

Also, by doing this, you will have a much less chance of being audited by the IRS. <HR></BLOCKQUOTE>

 

[bigbet1234]

can you still deduct insurance and medical?

 

[Fishhead]

Bigbet- I have some VERY small rental income, and thus declare myself as a LANDLORD for occupation.

No, I do not deduct insurance.

 

[Fishhead]

Bigbet- My health insurance is less than $500 a year and I havent had a medical bill in over 10 years, so that is no concern for me.

 

[Fishhead]

However, if it should occur, I can most certainly deduct my medical expenses if they are substantial.

 

[bigbet1234]

so, say you have no other income, besides gambling, is it possible to file(legally) as a non-professional?

 

[Fishhead]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by bigbet1234:
so, say you have no other income, besides gambling, is it possible to file(legally) as a non-professional? <HR></BLOCKQUOTE>

Not only is it legal, it is technically ILLEGAL if you do not and have any substantial gambling income.

 

[bigbet1234]

i am trying to cut my tax bill down is all.

they want to hit me with a 15% self-employment tax right off the top, if you file professionally.

so, medical is deductable even if you are not self-employeed?

 

[Fishhead]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by bigbet1234:
i am trying to cut my tax bill down is all.

they want to hit me with a 15% self-employment tax right off the top, if you file professionally.

so, medical is deductable even if you are not self-employeed? <HR></BLOCKQUOTE>

Medical BILLS, not medical INSURANCE, can be deducted even if you file UN-professionally.

I would strongly consider filing as a NON-professional.

Do not just take my advice, consult as many tax professionals as you can Bigbet.

However, I have been doing this for almost 15 years and I have found this the best way for me.

I wish we could have discussed this some at the bash.

 

[bigbet1234]

i wish too.

my only problem is i have a lot of miles and expenses i can deduct. i am not worried too much about an audit. i keep fairly accurate records.

i am working with a CPA now, i will see what she has to say

thanks

 

[Fishhead]

Just remember sir, I have found that the majority of tax professionals are not well versed about taxes on gambling.

They just do not deal with it often enough.

 

[bigbet1234]

This lady a a few professional gambler's. I was referred to her from a friend. The friend is very knowledgeable in the gaming and tax field, so I trust his referral.

Thanks again Fish, again, wish we could have talked about it at the bash.

 

[bigbet1234]

thanks fish, i just chatted with my CPA, i think i am filing non-professional, and doing a schedule A? we will do final numbers at the end of the year.

thanks again for the advice

BB

 

[Fishhead]

Thats EXACTLY what I do!

Your welcome buddy!