\nThe question for me on another post reminded me that tax time is around the corner.<\/p>\n
\tAs I have posted in the past, every dollar you win in the casino or state gambling should be reported on your personal income tax return.<\/p>\n
\tThere haven’t been any significant tax issues resolved in 2016 so the rules are the same as in past years. A literal reading of the law would requires every win to be reported. So looking at a literal ruling on the following sequence of rolls (7-11-2-3-8-7) i.e. two come out winners followed by two crap loser and then a point 7 and assuming the only bets you make are a $10 pass line bet, where you replace the loss on a CO craps, you should report $10 winning and then and only, you itemize deductions you could deduct losses of $10. The itemized deduction is limited to no more than your reported winnings.<\/p>\n
\t There has been a ruling by the IRS that allowed a gal who went to the casinos once a month, to determine her wins\/losses each day and report as wins those days that were positive, instead of using each bet during the day.<\/p>\n
\tYou are suppose to keep track of your win\/loss as they occur, i.e. keep a diary of your activity.<\/p>\n
\tIn this last trip of mine I was in Vegas for four days and had daily results of two days of losses totaling $535 and had wins totaling $359. If that was my only gambling for the year, I would report wins of $359 and if I itemize deductions then deduct as a misc Sch A itemized deduction of $359. The additional $176 of my losses wouldn’t be deductible.<\/p>\n
\tNoah<\/p>\n
Posted by:<\/strong> Dr Crapology on December 15, 2016, 12:41 pm<\/p>\n \tHave a great holiday season.<\/p>\n \tRose and Doc<\/p><\/div>\n<\/div>\n Posted by:<\/strong> JawBones on December 15, 2016, 1:09 pm<\/p>\n \tCan you clarify this? Am I correct in my assumptions?<\/p><\/div>\n<\/div>\n Posted by:<\/strong> Mr.PiP on December 15, 2016, 5:04 pm<\/p>\n \tThe second question I have is the un-comped expenses around a gambling \/ (Advantage Playier’s) Trip, Air\/Fair, lodging, transportation and meals. Can these be used to off-set your win’s? And, while we are at it, how about itemizing the cost of books, seminar’s, practice tools and supplies?<\/p>\n \t-Mr PiP<\/p><\/div>\n<\/div>\n Posted by:<\/strong> ACPA on December 15, 2016, 5:25 pm<\/p>\n \tCasino win\/loss statements that I have seen wouldn’t do much for documentation. \tI separate bank account for your W-2g helps if you use it just for gambling.<\/p>\n \tThe strongest support is a dairy type listing of results each time you gamble.<\/p>\n \tUnless you are a professional gamble which is a whole other discussion your expenses are not deductible.<\/p>\n \tNoah<\/p><\/div>\n<\/div>\n Posted by:<\/strong> RFink13 on December 19, 2016, 4:53 am<\/p>\n "ACPA" wrote:<\/strong> The question for me on another post reminded me that tax time is around the corner.<\/p>\n \tAs I have posted in the past, every dollar you win in the casino or state gambling should be reported on your personal income tax return.<\/p>\n \tThere haven’t been any significant tax issues resolved in 2016 so the rules are the same as in past years. A literal reading of the law would requires every win to be reported. So looking at a literal ruling on the following sequence of rolls (7-11-2-3-8-7) i.e. two come out winners followed by two crap loser and then a point 7 and assuming the only bets you make are a $10 pass line bet, where you replace the loss on a CO craps, you should report $10 winning and then and only, you itemize deductions you could deduct losses of $10. The itemized deduction is limited to no more than your reported winnings.<\/p>\n \t There has been a ruling by the IRS that allowed a gal who went to the casinos once a month, to determine her wins\/losses each day and report as wins those days that were positive, instead of using each bet during the day.<\/p>\n \tYou are suppose to keep track of your win\/loss as they occur, i.e. keep a diary of your activity.<\/p>\n \tWhy not just net it out and call it zero? It seems to me that reporting the $359 in winnings increases your AGI but the deduction does nothing to lower it, meaning you’re getting screwed on the medical deduction and anything else depending on the AGI. Not to mention in states like MI, you can’t deduct schedule A from your state return so you’re paying state income tax on the $359 when in reality you didn’t win anything.<\/p>\n \tIn this last trip of mine I was in Vegas for four days and had daily results of two days of losses totaling $535 and had wins totaling $359. If that was my only gambling for the year, I would report wins of $359 and if I itemize deductions then deduct as a misc Sch A itemized deduction of $359. The additional $176 of my losses wouldn’t be deductible.<\/p>\n \tNoah<\/p><\/blockquote>\n<\/div>\n<\/div>\n Posted by:<\/strong> RFink13 on December 19, 2016, 4:58 am<\/p>\n \tWhy not just net it out and call it zero?<\/p>\n \tBy reporting the income you’re increasing your AGI but the deduction doesn’t lower it. That screws your over on the medical deduction, business expense deduction and anything else which is depending on the AGI,<\/p>\n \tIn Michigan, the Schedule A is not deductible on the state return so you wind up paying state income tax on the $359 when in reality you didn’t win anything.<\/p>\n \tSince tax returns are on a year by year basis, I should be able to net it out and only report it if I have a win for the total year.<\/p><\/div>\n<\/div>\n Posted by:<\/strong> JawBones on December 19, 2016, 12:20 pm<\/p>\n Posted by:<\/strong> ACPA on December 19, 2016, 4:22 pm<\/p>\n \tAnd yes that gets you a different result than if you report only a net win at another.<\/p>\n \tI assure you if your wife received a W2-g or you got a W2-g got a 6 point fire bet win at Craps and reported less than the amount on those forms, you will likely be questioned about that.<\/p>\n \tTax law is what it is, at times it doesn’t sound right, by unless the law is changed it is what it is.<\/p>\n \tI tried to find some of my old posts on this, but it looks like they may not still be available.<\/p>\n \tThe IRS hasn’t been very aggressive in enforcing the gambling provisions of the law, but I don’t suggest you assume that will continue. It could change anytime. Posted by:<\/strong> JawBones on December 19, 2016, 6:04 pm<\/p>\n Posted by:<\/strong> ACPA on December 20, 2016, 6:03 am<\/p>\n \tIf you have read that entire topic and still have questions, I’ll try to answer them.<\/p>\n \tThe last two items from me in that post indicated what was contained on the Win\/loss statements for each of the Tunica Casinos which ws where I played and makes some comments using numbers for the tax year when I wrote the post that is repeated in that topic. Current numbers are probably different but I think you can follow the concept.<\/p>\n \tThe IRS approach that I mentioned earlier in this thread was issued after those old posts were made.<\/p>\n \tNoah<\/p><\/div>\n<\/div>\n
\n\tThe ones I have seen are usually just a net results although some of them show gross win and gross loses for the year.<\/p>\n
\n\tNoah<\/div>\n<\/div>\n