Tax question for "professional gamblers".
Over on my forum Rob Singer has written that he paid ZERO income taxes on his nearly one-million dollars of video poker profits by using the deductions available to professional gamblers. Again, he is referring to PROFITS and not just wins. His claim is that he had nearly one million dollars of PROFITS but paid zero income tax.
Quote: AlanMendelsonI am very familiar with the Schedule C form and what can be deducted for businesses. Are there different deductions that gamblers can use that don't come under the general categories used for filling out a Schedule C??
Over on my forum Rob Singer has written that he paid ZERO income taxes on his nearly one-million dollars of video poker profits by using the deductions available to professional gamblers. Again, he is referring to PROFITS and not just wins. His claim is that he had nearly one million dollars of PROFITS but paid zero income tax.
I'd imagine he's, well, gambling with over-stated deductions. His worst case is interest and penalties in addition to the amount owed. If the benefits of lying outweigh the chances of an audit, he's +EV.
But, also, he's Rob Singer, so there's a very high likelihood that everything he's said is utter BS.
Quote: IbeatyouracesExpensive!
Yes but bottom line is like any other business owner, you owe on your profits/ winnings. If you hit multiple 1099's yet have losses to cover it, you are fine. If you are an actual winner over the course of a year, deduct your legitimate expenses and pay on the difference. Trying to hide income or scam the IRS will catch up to you, but there are plenty of ways to legally cover income. Getting too smart will get you every time, but there are plenty of legal ways to avoid the max taxes when owning a business or being self employed such as a pro gambler. Just don't tell the Huffington Post as they are counting on you to support millions unwilling to do what it takes to make a legitimate living in today's America.
Most of the layabouts have a little something going on the side to supplement their ssi, section 8, food stamp, free cell phone bonanza and they don't have to pay taxes either. Ain't America great!Quote: BozYes but bottom line is like any other business owner, you owe on your profits/ winnings. If you hit multiple 1099's yet have losses to cover it, you are fine. If you are an actual winner over the course of a year, deduct your legitimate expenses and pay on the difference. Trying to hide income or scam the IRS will catch up to you, but there are plenty of ways to legally cover income. Getting too smart will get you every time, but there are plenty of legal ways to avoid the max taxes when owning a business or being self employed such as a pro gambler. Just don't tell the Huffington Post as they are counting on you to support millions unwilling to do what it takes to make a legitimate living in today's America.
Quote: IbeatyouracesYesterday, a guy next to me got two in consecutive hands on $2 DDB Spin Poker.
It's amazing how often they come back to back. Last time I was at Treasure Island in MN, I watched a woman get paid for a royal on $5 single line DDB. After she was paid, they asked her to hit the deal button (still don't understand why they do that), and up came a dealt 4 aces with a kicker. I didn't stick around to see what happened when they were done paying the second jackpot.
I lost a w2g 2 years ago. I hit twice in one day, and somehow only had one form when I left the casino. The second w2g was left off my taxes as a result. I made it until about August, when a letter came from the IRS. It was very straightforward - just notice that they'd received a form from a 3rd party that wasn't on my return, so could I please send in the $330 in taxes that they calculated that I owed on the amount. I had additional losses that could have offset those additional gains, but rather than amend my entire return I just sent in the money.
Quote: pewMost of the layabouts have a little something going on the side to supplement their ssi, section 8, food stamp, free cell phone bonanza and they don't have to pay taxes either. Ain't America great!
Amen! As many of you know, I own a bar/ restaurant and the amount of qualified potential employes I come in contact with every month who will only work for cash would shock you. I make too much to risk one person getting cash claiming they got hurt. But many people would be shocked to see how much of the business I am in deals in cash only from suppliers to employees.
Just another reason for a national sales tax. But you liberals say it is a "progressive" tax and hurts the so called "poor'. Who by the way are smarter than you think and only vote your way because they know there is something in it for them. Trust me, they can make it without you, but your side beats those wanting to hold them accountable every time.
Quote: rdw4potus
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I lost a w2g 2 years ago. I hit twice in one day, and somehow only had one form when I left the casino. The second w2g was left off my taxes as a result. I made it until about August, when a letter came from the IRS. It was very straightforward - just notice that they'd received a form from a 3rd party that wasn't on my return, so could I please send in the $330 in taxes that they calculated that I owed on the amount. I had additional losses that could have offset those additional gains, but rather than amend my entire return I just sent in the money.
I had almost the same scenario accept that I missed many of my W2G's that year. The IRS sent me a letter that said I owed an additional $9200. After many letters back and forth I was able to convince them that I had further losses and was able to get the amount down to about $900. At that point it wasn't worth fighting anymore so I sent them a check for the $900.
Quote: rdw4potusI lost a w2g 2 years ago. I hit twice in one day, and somehow only had one form when I left the casino. The second w2g was left off my taxes as a result. I made it until about August, when a letter came from the IRS. It was very straightforward - just notice that they'd received a form from a 3rd party that wasn't on my return, so could I please send in the $330 in taxes that they calculated that I owed on the amount. I had additional losses that could have offset those additional gains, but rather than amend my entire return I just sent in the money.
A couple of years ago we left off a W2G that my wife got and forgot to give me when we did the tax return. When I got the bill from the IRS I wrote a note -- pen on yellow legal pad paper -- that said "Yes, we did not include this in our return, however our losses offset this win. Please adjust to show no balance due." And about a month later we got another letter saying the bill was cancelled, no money owed.
