Poll

3 votes (33.33%)
5 votes (55.55%)
1 vote (11.11%)
No votes (0%)

9 members have voted

pacomartin
pacomartin
Joined: Jan 14, 2010
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July 4th, 2011 at 11:27:36 AM permalink
Quote: iwannaiguana

Yes, I suppose this is somewhat of a tax scam. I should have added an option to the poll: This is highly immoral, who would ever want to cheat the government out of your hard earned winnings.



Since your scam is pitifully easy to dream up, the government has already thought of it. You cannot show a loss at gambling on your tax form. The only purposes of recording losses is so that you have something to balance against your winnings. For most people the only reason to report winnings, is if you win a large enough amount at one time, that the casino is forced to report your win to the IRS.

So the scam is a no go from concept stage.
Doc
Doc
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July 4th, 2011 at 11:28:34 AM permalink
Quote: iwannaiguana

If you are correct then what a gyp the gov. gives us... They tax us on all our winnings, but we can only claim our "expected" losses.


I am not an accountant, and I do not play one on TV.

For a moment, let's assume that you are actually an honest person and try to file your tax returns in accordance with law and IRS regs. In that scenario, you report all of your gambling winnings and all of your gambling losses. You pay taxes on any net positive amount, but you don't get to deduct net gambling losses. Yes, that seems a little like a "gyp", but it is not the same as taxing all "real" winnings and only deducting "theoretical" losses.

The statement that you receive from a casino may or may not provide the information necessary to report your winnings and losses. You need to maintain your own records and be able to explain any discrepancies between your records and the casino's.

I have heard rumors that some states (Hawaii?) and even the federal government have considered changing the laws to tax all gambling winnings but not allow any deductions at all for gambling losses. Now that is something I would consider a gyp.
gofaster87
gofaster87
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July 4th, 2011 at 11:38:01 AM permalink
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iwannaiguana
iwannaiguana
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July 4th, 2011 at 11:42:16 AM permalink
Quote: Keyser

I suspect this isn't about comps, but an AP cover.

Regardless, it's clever.

And yes, they attempt to record your actual profit/ loss, not just the theoretical. The theoretical is shown, and then your actual. Then there's sometimes a standard deviaton for how far you are outside the norm on the form. Over a period of time, when APs get to far outside the norm. the casino host will sometimes begin to refuse airfare reimbursements, etc. Adding the losses helps keep you where you "belong" among the other players.



This is pretty much what I had in mind. I count cards so this way when they see I'm up big in BJ it doesn't raise any red flags because I'm down more in craps.

I realize you can't use it to get a big deduction on your income taxes. But it will offset gambling winnings so you don't pay taxes on those.
Doc
Doc
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July 4th, 2011 at 11:56:27 AM permalink
gofaster87:

That's pretty much why I said I would consider it a gyp. But that doesn't mean that governmental units have not considered it. They consider a lot of things when they need "revenue enhancement." I think the British and the Canadians have a better system for gambling taxation, except that the U.S. government would feel the revenues are not enhanced enough.
Nareed
Nareed
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July 4th, 2011 at 11:59:02 AM permalink
Quote: iwannaiguana

I realize you can't use it to get a big deduction on your income taxes. But it will offset gambling winnings so you don't pay taxes on those.



Before you do anything, run the idea past your accountant (or any accountant). As I implied, a tax dodge is a good idea, but only if it actually lowers your tax bill.
You can visit my blog Kathy's Cooking Corner at kathyscookingcorner.blogspot.mx ... .... When someone offers you friendship with one hand and stabs you in the back with the other, you tend to notice the knife a little bit more.
gofaster87
gofaster87
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July 4th, 2011 at 12:02:31 PM permalink
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heather
heather
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July 4th, 2011 at 1:18:28 PM permalink
If I were gonna do this, I would place the $5000 on a single number in roulette while hunting down my player's card. That way I either get the demonstrable $5000 loss that I wanted, or I win $175,000.

But I tend to agree with others that being able to demonstrate a $5000 loss is of questionable utility.
iwannaiguana
iwannaiguana
Joined: Jun 4, 2011
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July 4th, 2011 at 1:28:21 PM permalink
Quote: heather

If I were gonna do this, I would place the $5000 on a single number in roulette while hunting down my player's card. That way I either get the demonstrable $5000 loss that I wanted, or I win $175,000.

But I tend to agree with others that being able to demonstrate a $5000 loss is of questionable utility.



The idea is to do this multiple times. Having them record a $20,000 loss is pretty significant. That could cancel out taxes on a big jackpot you hit or reduce the heat big time if you're an AP. The difference is your average loss on the roulette bet is $250 whereas in craps it's $2.50. Also less variance than a single number bet.

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