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100xOdds
100xOdds
Joined: Feb 5, 2012
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December 22nd, 2018 at 8:22:56 PM permalink
Quote: BTLWI

I self filed and I didn't list a single W2G in 2016.
Earlier this year I got a letter saying "What about these 80 W2-G's we have? Please send us $30,000."
Russ Fox the Vegas tax attorney told me what to write to the IRS in my letter and what numbers had to change on my Schedule C.

Basically I had listed $50,000 gambling income and no losses.
They wanted to see $255,000 gambling winnings and $205,000 losses on my forms.
That's all I did was change those two numbers and explain what I did.
A month later night got a letter saying I owed $0. I was surprised they understood it right away.

whoa what?!!

why didn't you list any of those 80 w2-g's?!
they totaled $255k?

the IRS just wanted the gambling losses line on the tax form to say $205k and that was all it took for your return to be ok with them?
Craps is paradise (Pair of dice). Lets hear it for the SpeedCount Mathletes :)
AcesAndEights
AcesAndEights
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December 24th, 2018 at 4:27:51 AM permalink
Quote: 100xOdds

whoa what?!!

why didn't you list any of those 80 w2-g's?!
they totaled $255k?

the IRS just wanted the gambling losses line on the tax form to say $205k and that was all it took for your return to be ok with them?


He's a pro, don't get confused. Pros can net wins and loses on schedule C. Which is nice. But the IRS still expects to see that W-2G total somewhere.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
WangSanJose
WangSanJose
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December 28th, 2018 at 2:11:20 AM permalink
Quote: GWAE

You are going to report a 364k win and a loss of 364k on schedule A. Now you are a 1% er and you get crushed at a higher tax bracket and your 50k a year income gets destroyed.


Isn't the tax bracket based on net income?
I think the 364k losses offset the 364k wins, so the original 50k income is still at the low-end bracket.
Great
GWAE
GWAE
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December 28th, 2018 at 2:14:24 AM permalink
Quote: WangSanJose

Isn't the tax bracket based on net income?
I think the 364k losses offset the 364k wins, so the original 50k income is still at the low-end bracket.



Hmmm maybe

Just looked, tax bracket is based on net. I was wrong. However in that example your agi would be effected. It wont change your tax bracket but it does affect other things that are based on agi.
Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW
WangSanJose
WangSanJose
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December 28th, 2018 at 2:36:07 AM permalink
Quote: OnceDear

Similarly if I, a Brit, win big while in Vegas, I fill out a form and pay no tax to the IRS and no tax to HMRC (UK tax authority)
Bringing the cash home might involve a bit of US side banking or a declaration at UK point of entry.


Wow, you don't need to pay tax to both ends if you win big in the US.
I thought if you made money in the US, you have to pay tax, or at least state tax?
Great
cmlotito
cmlotito
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December 28th, 2018 at 2:56:02 AM permalink
Quote: GWAE

Quote: WangSanJose

Isn't the tax bracket based on net income?
I think the 364k losses offset the 364k wins, so the original 50k income is still at the low-end bracket.



Hmmm maybe

Just looked, tax bracket is based on net. I was wrong. However in that example your agi would be effected. It wont change your tax bracket but it does affect other things that are based on agi.



My AGI last year was well over 400k due to jackpots while my net income was well under 100k. When I was putting all the w2gs into turbo tax I noticed I was paying a higher percentage of tax. I would say your tax bracket is based on agi not net income based on what I observed.
OnceDear
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OnceDear
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December 28th, 2018 at 2:56:29 AM permalink
Quote: WangSanJose

Wow, you don't need to pay tax to both ends if you win big in the US.
I thought if you made money in the US, you have to pay tax, or at least state tax?

I believe not for gambling winnings. As a Brit on vacation in the US, I would have to provide my proof of ID (UK passport) to the casino. They'd assist with a bit of paperwork and there would be no witholding and no liability. On return home, the winnings would be of no interest to the UK Tax authorities (HMRC)
Take care out there. Spare a thought for the newly poor who were happy in their world just a few days ago, but whose whole way of life just collapsed..
WangSanJose
WangSanJose
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December 28th, 2018 at 3:04:49 AM permalink
http://www.taxabletalk.com/2018/07/15/the-real-winners-of-the-2018-world-series-of-poker/
What happens when a Brit won the WSOP, or lottery in the US, no tax at all?
Great
OnceDear
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OnceDear
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December 28th, 2018 at 3:53:52 AM permalink
Quote: WangSanJose

http://www.taxabletalk.com/2018/07/15/the-real-winners-of-the-2018-world-series-of-poker/
What happens when a Brit won the WSOP, or lottery in the US, no tax at all?

That's my understanding. NO TAX LIABILITY, anywhere.
By international treaty, a Brit resident and citizen visiting the US would only have to pay his normal taxes to our HMRC and none to the IRS. Since HMRC do not collect or have any interest in gambling or lottery profits or losses, then there would be no tax to pay to HMRC or IRS. Now, if I were to attract other income such as sponsorship or appearance fees, then HMRC would tax that income the same as if I'd earned it back home.
Physical location wouldn't matter either. If I enter a US lottery through the mail or on-line, I'm still not obliged to pay tax anywhere if I win.
Such winnings don't even have to be declared here at all on my annual tax return. That said, one day, I might have to explain my massive wealth under anti-money laundering laws.. E.g. I might have to explain to my legal advisor how I afford to pay cash for a mansion.
Take care out there. Spare a thought for the newly poor who were happy in their world just a few days ago, but whose whole way of life just collapsed..
WangSanJose
WangSanJose
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December 28th, 2018 at 4:17:47 AM permalink
then every person serious about buying lottery should find a Brit agent to buy for them. Tax has a huge impact on the Lottery amount. I'm about to get the green card and realized I'm a taxed resident now, immigrant to England might be a better choice..
Great

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