Follow up to House Bill 3962

As an aside:

If you are a Hi-Limit Slots player or other player, that spends ALOT of time in the casino,
then you SHOULD be doing what Jerry says, and have a gambling log.

And then, you should be reporting your winnings as a Schedule C BUSINESS, not going to line 7 of the 1040.

A little bit harder to do, but if your spending more than 20 hours a week in a casino, or have no other employment, you can end up just paying tax on your NET income from gambling, including comps, and deducting travel and other expenses.

If you go to a casino 12 times a year, you are out of luck with this method. Gross income to Line 7 and unlimited Itemized deductions. But your always behind in this method...

SFB

Quote: SFB

If you are a Hi-Limit Slots player or other player, that spends ALOT of time in the casino,
then you SHOULD be ... reporting your winnings as a Schedule C BUSINESS...If you go to a casino 12 times a year, you are out of luck with this method.

some time consideration determines if you are conducting gambling as a business?

OG:

Yes. The time committed is a significant factor in determining that you are gambling as a business.

Significant Time, And significant cash.

$20 a roll at the craps table doesn't get you there.

$200 a roll, for 4 hours a night, MAY.

Putting $50-100 though a slots machine per roll, MAY get you there.

I will post some additional info later. But its a big standard to get past...

According to the Supreme Court Standard:

A "professional gambler" is an individual, who pursues gambling full time, with regularity, and as a livelihood rather than as a hobby. Professional Gamblers must demonstrate a profit motive for it to considered a trade or business.

So, it is a high hurdle.

SFB

Interestingly, you could form a corporation to do the gambling, and have it pass through to your individual income tax return (probably a S Corp). A lot more headache, but worth it for the true person who makes it their profession. http://professionalgamblerstatus.com/