AxiomOfChoice
AxiomOfChoice
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February 8th, 2014 at 9:49:44 AM permalink
Quote: MathExtremist


but that seems to indicate that a $1500 bet that pushed would result in a W-2G. Or a better example a $100-coin 50 line slot game, costing $5000 per spin, where one line yielded a 20-coin award. The play lost $3000 but you'd still get a W-2G because "taxable winnings" were $2000?

I can't imagine that Congress intended for "putting many thousands of dollars into a gaming machine, then getting more than $1200 back out" to be a taxable event.



This is exactly how it works.

You have to understand that congress is not an expert in pretty much anything. They probably figure that slots are all people betting with pennies and quarters. I'm sure that at the time that this legislation was written, it never occurred to anyone that there were $1000 slot machines.

Note, though, that a W2G does not change how much tax you owe. A W2G just means that the winnings are reported to the government. All gambling winnings are taxable, whether they are reported or not, and you may always itemize your deductions and include your gambling losses. So if you make a $5000 bet on a machine, and lose $3000 and get paid out $2000, the $2000 gets reported, but that doesn't mean that you owe any taxes.

Whether the winnings are reported or not only matters to a tax cheat; to someone who files their taxes honestly it makes no difference, other than the annoyance of additional paperwork, and possibly delays on hand-pays. Although, my understanding is that high-denom machines can be put into a mode where you can continue to play through $1200+ payouts, and all the hand-pays will be made at the end.
teddys
teddys
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February 8th, 2014 at 10:39:33 AM permalink
I saw someone playing the $500 machine at Horseshoe Cleveland. Every pay was a taxable. Jesus Christ, how is that fun?
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
jagreenm
jagreenm
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February 8th, 2014 at 5:37:15 PM permalink
I guess they only way we get to legally play craps in Florida is for them to call it a slot machine. The downside is it must then comply with slot machine win accounting... which sucks and makes no sense for craps (or any table game substitute).
Frogger
Frogger
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February 8th, 2014 at 7:54:20 PM permalink
I've seen those machines at Hard Rock. One time there were a couple of guys playing two terminals each. I think that's how they got through the W2G issue. If you played two terminals and split your bet between them, then you wouldn't get a W2G!
Keyser
Keyser
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February 8th, 2014 at 8:14:26 PM permalink
Solution: Don't put any more thought into the situation and simply cheat elsewhere on your taxes in order to get a fair shake.
beachbumbabs
Administrator
beachbumbabs
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February 8th, 2014 at 10:36:42 PM permalink
Quote: jagreenm

I guess they only way we get to legally play craps in Florida is for them to call it a slot machine. The downside is it must then comply with slot machine win accounting... which sucks and makes no sense for craps (or any table game substitute).



jagreenm,

If you go on the Victory Casino Cruise out of Port Canaveral, FL, you can play real craps. They have 3 tables, I believe all are $5 minimums. They sail twice a day, 5-6 hour cruises. The Indians can't offer real craps, but the Victory does. It costs $10 to get on.

Victory home page and schedules
If the House lost every hand, they wouldn't deal the game.
AcesAndEights
AcesAndEights
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February 10th, 2014 at 10:32:26 AM permalink
In my perfect world, any piece of legislation or tax code that includes a concrete dollar amount would be indexed to inflation. The $1200 limit for W2-Gs was set a long time ago, I think in the early 90s although that is a pretty wild guess. $1200 now is not the same amount of real money as it was back then.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
ViennaPizza
ViennaPizza
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September 19th, 2022 at 8:08:18 PM permalink
Quote: AcesAndEights

In my perfect world, any piece of legislation or tax code that includes a concrete dollar amount would be indexed to inflation. The $1200 limit for W2-Gs was set a long time ago, I think in the early 90s although that is a pretty wild guess. $1200 now is not the same amount of real money as it was back then.
link to original post



Just stumbled upon this dead thread as I almost ate a W2G playing don't come don't pass on e-craps. It was something like $750 bet and $440 win and the taxes alone would have reduced the $440 win to a $200 win (-60% loss)

I found this source for calculating inflation throughout the years. Seems legit.

https://www.in2013dollars.com/us/inflation/1990?amount=1

According to the calculator, $1 in 1990 is worth $2.27 in 2022. Which means the $1200 threshold should be raised to $2724. But that's by logic, not politics. Politics is a different story.
ChumpChange
ChumpChange 
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September 19th, 2022 at 9:10:13 PM permalink
If you go by inflation from the 1970's, it should be at least $5,000. If you look at the jackpot inflation occurring in the casinos, it'd probably be $25,000. The CTR's should be raised to $100,000. If you look at the price of cocaine, well, I've utterly lost track, but how much is 5 kilos these days?

How Much Is A Kilo Of Cocaine In The United States? https://www.arkbh.com/illicit-drugs/cocaine/prices/
A kilogram of cocaine can cost as little as $14,500 in San Diego, California, and as much as $45,000 in Anchorage, Alaska.

In Boston, Massachusetts, one kilo usually costs between $29,000 and $39,000. The same amount costs between $31,000 and $38,000 in Springfield and between $30,000 and $36,500 in Worcester.

Remember when cocaine used to be $100 per gram, so a kilo would be $10,000. If you go by the price of coke, the CTR's should be raised to $30,000.
If you go by the standard tax deduction under the new tax act of a couple years ago, the W-2G's should be raised to $12,000.

Here's what's driven changes in cocaine prices on US streets since the 1980s https://www.businessinsider.com/us-cocaine-prices-change-2016-10
Last edited by: ChumpChange on Sep 19, 2022
Ace2
Ace2
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September 19th, 2022 at 11:10:27 PM permalink
Quote: ChumpChange


$100 per gram, so a kilo would be $10,000.

$100,000. A kilogram is 1000 grams.
Itís all about making that GTA

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