Gambling and taxes

Quote: MrV

Assuming you use a player's card, contact all the casinos you played at last year and request your annual win/loss report..

Unless they changed from the last time I checked,
you can use the players card report to validate your
log, but you can't use it alone as proof. You might
have only used it half the time, and are trying to
get away with something.

Quote: EvenBob

I heard today that this year airlines are required
to turn in passengers frequent flier miles earned,
because its considered taxable income. I believe
casino comps are taxable also.

Yes, and yes.

When I worked for a major university, the issue of frequent flier miles became a burden. Professors were flying on trips, that were paid for by the university. However, they were earning frequent flier miles on their personal credit cards. (They use credit card to pay for flight, earn miles, and get reimbursed by the university.) The university decided to take the position that any frequent flier miles earned on business trips belonged to the university, so that they could use them to send professors on trips at a lower cost. I remember at the meeting, one professor stating that the peanuts that were served on the plane should also then belong to the university, and he would be happy to regurgitate his peanuts right onto the table.

I apologize for the tangent. But, as more and more things become computerized and easily trackable, we'll see more and more things that the IRS is going to want their tax money off of. I'm still surprised that home equity loans never got attacked.

Quote: MathExtremist

That's a good reason to use a comp card. The casino will send you a win/loss report at the end of the year, and that is usually sufficient to wipe out any W-2G amounts (assuming you actually did lose money). Without the loyalty card, they don't track your play and can't do this.

So if any carded players got W-2Gs this past year contact your casino for the win/loss form so you can substantiate deductible losses.

I actually got one of these win/loss statements over email from the Station chain (I gambled once there all year, funny they were the only chain to proactively send me such a thing). I had no idea these win/loss statements were even available - I just tried to pull up my 2010 win/loss from Total Rewards, but the "system is down." Interesting to see what they have for me for 2010 and 2011 compared to my records. They can't have anything too exact...

Quote: EvenBob

Unless they changed from the last time I checked,
you can use the players card report to validate your
log, but you can't use it alone as proof. You might
have only used it half the time, and are trying to
get away with something.

Yeah it says that right on the TR page where you request your statement:

Quote: Total Rewards

TERMS & CONDITIONS

The Total Rewards player rating system is not intended for tax reporting purposes to the IRS. or any other State or Local reporting agency. Caesars Entertainment makes no representation as to either the accuracy of this information or its effectiveness as a proof of losses and expressly disclaims any liability arising out of or related to any errors contained in this statement. This amount may not include all hand-paid jackpots reportable to the IRS on form W2G. The IRS recommends keeping a diary of your gaming activity with such pertinent information as dates, slot machine or table numbers, jackpots, and total wins and losses. For specific information on tax return preparation and IRS requirements, please consult a tax advisor or the IRS at www.irs.gov.

>>The IRS recommends keeping a diary of your gaming activity with such pertinent information as dates, slot machine or table numbers, jackpots, and total wins and losses.>>

Its not recommended, its required. Without it they
won't even consider your losses.

Only IF you face an audit. And the odds (as we all play) are slim on that. Unless you are trying to hide something. Life is far too short to worry about stuff like this. Gamble, drink and enjoy!

Quote: Boz

Only IF you face an audit.

And if you keep claiming gambling amounts,
chances are good you'll get flagged and
audited. My tax guy says the IRS is a money
making outfit, if they work 5 hours on something,
they expect a return of X amount of dollars.
Because most gamblers lie like hell about how
much they win, they're a good audit choice.
They can a do a forensic audit on you that comes
so close you'll be amazed.

Quote: EvenBob

>>The IRS recommends keeping a diary of your gaming activity with such pertinent information as dates, slot machine or table numbers, jackpots, and total wins and losses.>>

Its not recommended, its required. Without it they
won't even consider your losses.

So is a diary.....proof, I mean is that good enough? I couldn't fudge the numbers, hey? I would most likely have to submit my statement if/when its ever needed?

Ken

The main point seems to have been covered well enough, so I'll keep silent on it. However, on some of the side points...

Quote: konceptum

When the casinos get to the point where they will start turning in the entirety of your gambling records from your player's card, then start worrying about the taxes.

When the casinos start reporting my gambling play to the IRS is the day I shred the things and throw them off the nearest bridge. That's why I believe it will never happen.

Quote: konceptum

I'm still surprised that home equity loans never got attacked.

Why would they do that? Borrowed money is never taxable. If that money is used to make real money, then THAT is taxable.

Quote: MrV

Assuming you use a player's card, contact all the casinos you played at last year and request your annual win/loss report.

They track both machine and table action.

Yeah, but not very well. I've pulled my reports from selected casinos the past few years and most of them have been off significantly (I keep detailed records). So I think the IRS is justifiably skeptical about players using only them as documentation.

Quote: mrjjj

So is a diary.....proof, I mean is that good enough? I couldn't fudge the number

You can fudge the numbers, but its not worth it. They're
very good at catching people, you're better off not getting
on the train at all.