Question about taxes on big wins.
September 25th, 2017 at 7:55:01 PM
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Let's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D
"Man Babes" #AxelFabulous
"Olive oil is processed but it only has one
ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D
I sometimes speak in metaphors. ;) Remember this. ;)
Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D
"For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
September 25th, 2017 at 8:09:46 PM
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Quote: NathanLet's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.
You still have to claim the win but if you itemize you can write off the $2,000 loss against the win.
At my age, a "Life In Prison" sentence is not much of a deterrent.
September 25th, 2017 at 8:16:50 PM
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Nathan, the fact that you got a handpay is irrelevant. Whether you get a handpay or not, you add up all your session wins, and you pay taxes on that. There's a more detailed answer in my article about gambling taxes.
Last edited by: MichaelBluejay on Sep 25, 2017
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September 25th, 2017 at 8:20:32 PM
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Quote: MichaelBluejayNathan, the fact that you got a handpay is irrelevant. Whether you get a handpay or not, you add up all your daily wins, and you pay taxes on that. There's a more detailed answer in my article about gambling taxes.
Wins and losses. Not just wins, although there are some states that tax you on wins, regardless of losses.
The difference between fiction and reality is that fiction is supposed to make sense.
September 25th, 2017 at 8:37:26 PM
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No, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.Quote: billryanWins and losses. Not just wins, although there are some states that tax you on wins, regardless of losses.
The question posed requires an article-sized answer, which is why I referred the OP (and everyone else) to my article. There's no point in battling details in the forum.
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September 25th, 2017 at 9:02:24 PM
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Now to the real world answer. Nobody claims wins unless they are W2-G. If you report a hand pay to the IRS that did not receive a W2-G you might be the only one in the Country to do it.
ZCore13
ZCore13
I am an employee of a Casino. Former Table Games Director,, current Pit Supervisor. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
September 25th, 2017 at 9:16:10 PM
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If anyone reports W2-G wins they're almost certainly doing it wrong. You don't report W2-G's, you report the total of session wins. One year I received a fistful of W2-G's but didn't report any of them, because I had no session wins. Again, see the article.Quote: Zcore13Nobody claims wins unless they are W2-G.
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September 25th, 2017 at 9:55:47 PM
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Your article has incorrect information.
First, you can and do receive W2-G's on table game wins. Wins of $600 or more (after deducting the wager) and at least a 300-1 odds payout receive W2-G's. These happen on games like Lucky Ladies, High Card Flush and other games with high top end wins.
The IRS does not go by sessions anymore. They go by a calendar day (easily attainable) or the Casinos gaming day (not usually attainable). The W2-G instructions specifically say it is by the day and even define the term.
ZCore13
First, you can and do receive W2-G's on table game wins. Wins of $600 or more (after deducting the wager) and at least a 300-1 odds payout receive W2-G's. These happen on games like Lucky Ladies, High Card Flush and other games with high top end wins.
The IRS does not go by sessions anymore. They go by a calendar day (easily attainable) or the Casinos gaming day (not usually attainable). The W2-G instructions specifically say it is by the day and even define the term.
ZCore13
Last edited by: Zcore13 on Sep 25, 2017
I am an employee of a Casino. Former Table Games Director,, current Pit Supervisor. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
September 25th, 2017 at 10:06:40 PM
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Quote: MichaelBluejayNo, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.
The question posed requires an article-sized answer, which is why I referred the OP (and everyone else) to my article. There's no point in battling details in the forum.
You said you add up your daily wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two. If someone followed your advice, they would add up their wins and pay taxes only on that.
Its not that complicated.
The difference between fiction and reality is that fiction is supposed to make sense.
September 25th, 2017 at 10:12:18 PM
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That is absolutely not true. Read the article I referred you to. It's based on IRS documents and tax expert advice. As one of my expert sources says, "You may not, repeat NOT, subtract your losses from your winnings and only report the amount left over, if any. You're supposed to report every penny you win, even if your losses exceeded your winnings for the year."Quote: billryanYou said you add up your daily [actually session] wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two.
There's also IRS Publication 529, which says, "You can't reduce your gambling winnings by your gambling losses and report the difference."
Again, all this is explained in my article, which includes official and expert sources.
Last edited by: MichaelBluejay on Oct 17, 2020
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September 25th, 2017 at 10:41:54 PM
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You're right, thank you. I updated the article.Quote: Zcore13First, you can and do receive W2-G's on table game wins. Wins of $600 or more (after deducting the wager) and at least a 300-1 odds payout receive W2-G's.
That's not true, from the player's perspective, which is what we're talking about. The audience for W2-G instructions is the *casino*, not the player. The *casino* can elect to report multiple payments on a single W2-G, for either a calendar day or a gaming day. This has absolutely nothing to do with how a player is supposed to keep track of his/her wins/losses. About that, IRS Notice 2015-21 states quite clearly, "Gross income from a slot machine wagering transaction is determined on a session basis," and I can't find anything newer that supersedes that.Quote: Zcore13The IRS does not go by sessions anymore. They go by a calendar day (easily attainable) or the Casinos gaming day (no usually attainable). The W2-G instructions specifically say it is by the day and even define the term.
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September 25th, 2017 at 11:08:38 PM
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Quote: MichaelBluejayYou are 100% wrong on that. Read the article I referred you to. It's based on IRS documents and tax expert advice. As one of my expert sources says, "You may not, repeat NOT, subtract your losses from your winnings and only report the amount left over, if any. You're supposed to report every penny you win, even if your losses exceeded your winnings for the year."Quote: billryanYou said you add up your daily [actually session] wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two.
There's also IRS Publication 529, which says, "You can't reduce your gambling winnings by your gambling losses and report the difference."
Again, all this is explained in my article, which includes official and expert sources.
Reading is FUNdimental. Read what I wrote. I didn't say to subtract your losses from winnings anywhere. I said you only pay tax on the difference. That is 100% accurate.
By the way, your rail information is wrong. The closest Amtrak station is not in LA. It's in Kingman. People going east or west can get off in Kingman and be in Vegas in an hour and a half.
The difference between fiction and reality is that fiction is supposed to make sense.
September 25th, 2017 at 11:27:43 PM
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First of all, what you wrote absolutely suggested that you meant subtracting losses from winnings. "You add up your daily wins and your daily losses. You only pay taxes on the difference between the two."Quote: billryanReading is FUNdimental. Read what I wrote. I didn't say to subtract your losses from winnings anywhere. I said you only pay tax on the difference. That is 100% accurate.
My reading scores were always off the charts. If you don't want people to misunderstand you, put more care into how you use your words.
Second, even your clarification is flat-out wrong, meaning not even close to "100% accurate". Most people don't itemize, and therefore most taxpayers DO owe tax only on the winnings, NOT the difference between winnings and losses.
I'm reminded why I quit this forum in the first place. I'm out again.
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September 25th, 2017 at 11:38:11 PM
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Michael most people just blame it on excessive fluoridated Popsicle consumption with a side of dollar store rib eyes. It really is much better if one sticks to the nightly meal deal special at Emerald Isle. That there is some good brain food.
September 26th, 2017 at 4:08:31 AM
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Quote: MichaelBluejay
I'm reminded why I quit this forum in the first place. I'm out again.
Channeling Gene Wilder:
Stop. Dont. Come back.
(Why do apostrophes not work?)
https://wizardofvegas.com/forum/off-topic/gripes/11182-pet-peeves/120/#post815219
September 26th, 2017 at 4:22:46 AM
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Nathan, I don't know your particulars for sure, but we have learned a little about you anyway and I would have to bet you do not itemize deductions on your taxes.
This probably being the case, the W2-g is a disaster for you, as it means you will be paying more taxes, in spite of the fact that, like the vast majority of slot players, you actually lost money for the year gambling.
I think the only way out of that problem is to win enough W2-gs so that you automatically qualify [if you have the losses] for itemizing your deductions. That, though, is not good either, as now you are in the position of not just stating you have the losses but are faced with the possibility you might have to prove it. I don't know how likely it is that you would get unwanted IRS attention that way, but personally I decline to ever be faced with that problem. I don't play slots.
You also increase the total gross income, the AGI, on your tax form, and for a lot of people that is also a disaster.
This probably being the case, the W2-g is a disaster for you, as it means you will be paying more taxes, in spite of the fact that, like the vast majority of slot players, you actually lost money for the year gambling.
I think the only way out of that problem is to win enough W2-gs so that you automatically qualify [if you have the losses] for itemizing your deductions. That, though, is not good either, as now you are in the position of not just stating you have the losses but are faced with the possibility you might have to prove it. I don't know how likely it is that you would get unwanted IRS attention that way, but personally I decline to ever be faced with that problem. I don't play slots.
You also increase the total gross income, the AGI, on your tax form, and for a lot of people that is also a disaster.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
September 26th, 2017 at 6:18:21 AM
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Quote: odiousgambit
You also increase the total gross income, the AGI, on your tax form, and for a lot of people that is also a disaster.
I think that is the least understood concept amongst people that think they understand gambling taxes. They think by taking an equal write off of losses against wins costs them no taxes. The truth is they are still probably paying more.
At my age, a "Life In Prison" sentence is not much of a deterrent.
September 26th, 2017 at 6:31:13 AM
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Quote: MichaelBluejayThere's a more detailed answer in my article about gambling taxes.
Ummm... Section 1 of your discussion about gambling losses seems a bit mixed up, don'cher know?
Quote: You can deduct your gambling losses, but there are some catches:1. For example, if you lose $1000 playing slots, and the next day win $400, and that's the only gambling you do for the year, you can deduct only $400 of your slot loss. You'll report a $1000 win and a $400 loss.
Not sure why I report a $1,000 win on taxes if I suffer a $1,000 loss. But, income taxes are complex. When I've had situations like the one quoted (assuming no other gambling that tax year), I would have reported a $400 win and a $400 loss (the maximum amount allowed by IRS because of my win amount) on my Schedule A. Probably my 2nd underline in your text should be changed from "report a $1000 win" to "report a $400 win."
Line 28 of Schedule A (Miscellaneous Deductions) has a place for the taxpayer to describe the loss. But, I'm don't expect it matters one tiny twit to the IRS if the taxpayer writes, "Gambling loss," or "$1,000 Gambling Loss." The dollar amount shown in the actual deduction will be $400.
September 26th, 2017 at 6:53:28 AM
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Quote: Mission146(Why do apostrophes not work?)
Don't
They do.
I'm in favor of a dumping the IRS for a "graduated" national sales tax. Meaning that the more something costs, the higher the tax rate.
DUHHIIIIIIIII HEARD THAT!
September 26th, 2017 at 12:07:35 PM
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Let me chime in here. First, a disclaimer that I'm not a tax expert but have been affected by the taxes on gambling winnings every year going back some 16 years.
That said, I will just comment on what me (or is it I?) and my account do. My accountant is Marissa Chien who literally wrote a book on taxes for professional gamblers, which most of her clients are. Since video poker is my main thing these days, under gambling winnings I declare the sum of my W-2G forms. On line 28 of schedule A I deduct whatever amount is needed to get total gambling revenue to what I deem to should be. This will include wins and losses from all forms of video poker. Thanks in part for four Super Bowl safeties in recent years, this amount is often the same as as the total of the W2G forms, because I have had a net loss for the year.
It is possible this is not what the letter of the law says to do but I do claim that is my understanding of the way gamblers actually do their taxes.
p.s. This is an apostrophe: '
That said, I will just comment on what me (or is it I?) and my account do. My accountant is Marissa Chien who literally wrote a book on taxes for professional gamblers, which most of her clients are. Since video poker is my main thing these days, under gambling winnings I declare the sum of my W-2G forms. On line 28 of schedule A I deduct whatever amount is needed to get total gambling revenue to what I deem to should be. This will include wins and losses from all forms of video poker. Thanks in part for four Super Bowl safeties in recent years, this amount is often the same as as the total of the W2G forms, because I have had a net loss for the year.
It is possible this is not what the letter of the law says to do but I do claim that is my understanding of the way gamblers actually do their taxes.
p.s. This is an apostrophe: '
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
September 26th, 2017 at 12:42:17 PM
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Quote: WizardThat said, I will just comment on what me (or is it I?) and my account do.
Tee Hee. While I'm doing my year end tax assessment, this is what I do: Smile at my winnings and drink some JD.
You see, our wonderful HMRC, here in the UK, has no interest whatsoever in casino winnings or losses, nor lottery winnings. They tax the profits of the casino, just as any other business.
Surely that is the most sensible approach, since the average gambler makes a loss, so there would not be much tax take to cover the mountains of admin.
Taxing on winnings while not allowing deduction for losses, seems absurdly cruel and unjust. Also likely to encourage creative accounting.
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
September 26th, 2017 at 1:07:19 PM
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Quote: OnceDearTaxing on winnings while not allowing deduction for losses, seems absurdly cruel and unjust. Also likely to encourage creative accounting.
We do allow offsetting wins with losses. However, it gets complicated. You may not qualify for certain other deductions based on your total income before declaring gambling losses.
About the UK, I say "hip hip horay" for not taxing gambling winnings.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
September 26th, 2017 at 1:43:55 PM
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It is my understanding that several states do not allow you to deduct losses for state income tax purposes.
The difference between fiction and reality is that fiction is supposed to make sense.
September 26th, 2017 at 3:20:49 PM
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Quote: billryanIt is my understanding that several states do not allow you to deduct losses for state income tax purposes.
some of them have legalized casinos. Can you spell g-r-e-e-d-y ?
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
September 26th, 2017 at 3:51:40 PM
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In the states with casinos that don't allow deducting losses, is it all losses anywhere or just those in the state itself?
The difference between fiction and reality is that fiction is supposed to make sense.
September 26th, 2017 at 6:03:10 PM
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The thing I find confusing is still having to pay taxes on handpay money that ended up being LOST. You are DOWN if you put the $2,000 right back into tight machines. If I ran the IRS I would only tax on money that the gambler LEFT with not money he lost. Losing money and still having to pay taxes on lost money is really messed up.
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D
"Man Babes" #AxelFabulous
"Olive oil is processed but it only has one
ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D
I sometimes speak in metaphors. ;) Remember this. ;)
Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D
"For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
September 26th, 2017 at 6:05:22 PM
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Quote: NathanThe thing I find confusing is still having to pay taxes on handpay money that ended up being LOST. You are DOWN if you put the $2,000 right back into tight machines. If I ran the IRS I would only tax on money that the gambler LEFT with not money he lost. Losing money and still having to pay taxes on lost money is really messed up.
Welcome to the good ole U.S. of A.
DUHHIIIIIIIII HEARD THAT!
September 26th, 2017 at 7:50:37 PM
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Quote: WizardThat said, I will just comment on what me (or is it I?) and my account do.
It should be, "That said, I will just comment on what my accountant and I do."
The "me" or "I" always comes last. An easy way to tell if it should be "me" or "I" is you remove the other stuff that doesn't matter and usually you can figure it out. Should it be "I do" or "me do"?
I don't know nuffin' 'bout taxes, I just send all my stuff to my accountant and it's handled properly. But I believe you can deduct losses from wins if you itemize....and if you don't itemize, you can't deduct losses from wins.
September 26th, 2017 at 8:19:32 PM
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Quote: NathanThe thing I find confusing is still having to pay taxes on handpay money that ended up being LOST. You are DOWN if you put the $2,000 right back into tight machines. If I ran the IRS I would only tax on money that the gambler LEFT with not money he lost. Losing money and still having to pay taxes on lost money is really messed up.
How would you propose the IRS determine what someone leaves with.
Suppose you are walking out with $2,000 but stop and buy a six pack for the ride home. Now you don't leave with $2,000.
The difference between fiction and reality is that fiction is supposed to make sense.
September 26th, 2017 at 8:22:07 PM
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Quote: billryanHow would you propose the IRS determine what someone leaves with.
Suppose you are walking out with $2,000 but stop and buy a six pack for the ride home. Now you don't leave with $2,000.
The difference between fiction and reality is that fiction is supposed to make sense.
September 27th, 2017 at 5:04:21 AM
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On a side note, this is why ALWAYS playing with a player's card is a MUST. You can show your tax preparer the $2,000 LOSS with the win/loss statement as a way to offset the taxes. On another side note, using the player's card while losing the $2,000 should rack up a lot of points and comps for you. Even a DRY run where every spin was a 0 win is worth 400 points at my local, Gulfstream. That's just saying EVERY spin was a 0 spin loss, which is damn near impossible. In the reality you will get some type of win with at least some of the spins, so you would be getting at least 600 points. So you will be wise to use the player's card for the extra points and the win loss statement. :)
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D
"Man Babes" #AxelFabulous
"Olive oil is processed but it only has one
ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D
I sometimes speak in metaphors. ;) Remember this. ;)
Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D
"For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
September 27th, 2017 at 5:13:49 AM
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Quote: NathanOn a side note, this is why ALWAYS playing with a player's card is a MUST. You can show your tax preparer the $2,000 LOSS with the win/loss statement as a way to offset the taxes.
The IRS does not consider casino win/loss reports, by themselves, as adequate documentation during an audit.
You need to keep a contemporaneous log, in great detail, of your play, by machine number, casino, date, time, amount bought in, amount won or lost. Same with tables. Can't just say played bj at Xyz Casino on Jan 1. Which table. What time. Etc.
The casino statements are supporting documentation, as are food or hotel receipts, etc. But the log is the main thing. If you don't keep one and they come after you, it is likely you will not be allowed any losses.
This is the main reason I keep my br in the bank and use an on-site ATM. I have receipts showing amounts withdrawn, dates, times, from the casino itself. According to my accountant, this is the best possible documentation. It also helps me not bet the mortgage.
If the House lost every hand, they wouldn't deal the game.
September 27th, 2017 at 6:26:31 AM
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I've heard this here before, but is there really that much liability for the recreational gambler? I've been playing in casinos for some 25 years, and never received a W-2G until this past year. I've never kept a log; I just gave my W-2's and win-loss statements to my accountant, and she seemed to think that was good enough.Quote: beachbumbabsThe casino statements are supporting documentation, as are food or hotel receipts, etc. But the log is the main thing. If you don't keep one and they come after you, it is likely you will not be allowed any losses.
Honestly, does the IRS expect me to have kept meticulous records each of those 25 years on the off chance that I would have to file a W-2G at some point? (Don't answer that! :) ) If it came down to it, I'm sure I could produce bank & travel statements showing where I went & what I spent. I'm really not too concerned about an audit, though. But, I am neither an accountant nor a lawyer. Perhaps it is a false sense of security.
That is a great idea, Babs! Maybe I'll have to adopt this if I keep hitting those big wins! :)Quote:This is the main reason I keep my br in the bank and use an on-site ATM. I have receipts showing amounts withdrawn, dates, times, from the casino itself. According to my accountant, this is the best possible documentation. It also helps me not bet the mortgage.
"Dealer has 'rock'... Pay 'paper!'"
September 27th, 2017 at 7:24:11 AM
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just write off that $2000 on line 28 of Schedule A on your 1040 when you file your taxes.Quote: NathanLet's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.
I heard you can write off up to $15k in gambling loses to offset $15k in w2-g w/o detailed documentation of the loses.
low chances of the IRS auditing you for that low amount because it costs the IRS $15k to audit you.
I asked a similar question in this forum a couple of months ago for some radio show having a tax lawyer on and wanted questions.
don't know if the radio show ever went off
Last edited by: 100xOdds on Sep 27, 2017
Craps is paradise (Pair of dice).
Lets hear it for the SpeedCount Mathletes :)
September 27th, 2017 at 11:38:13 AM
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Players card doesn't mean squat. I was in the VIP lounge last month and asked the host how many August W2-G's I had for the upcoming drawing. She said 19. She then said, wow you're up on slots $10,000 for this month and $50,000 for the year, lucky guy! (Nobody was around or she wouldn't have said that - she's been at the desk for years). Anyway that number is inaccurate because my card was in on more than my fair share of the $10,000 must hit machines when they went off during group play. Sometimes my share was $5000, sometimes $3300 but my players card thinks it's $10,000. One of the group guy is 0/3 on having his card in when it hits, his card probably reflects a loss for the year even though he profited about $5-6K on the plays.
I keep daily gambling logs similar to what's shown on that linked website but with a few more details. And have tons of cash withdrawal slips from the cashier - no charge for top tier card level and can get over your daily ATM limit using your debit card and pin.
I keep daily gambling logs similar to what's shown on that linked website but with a few more details. And have tons of cash withdrawal slips from the cashier - no charge for top tier card level and can get over your daily ATM limit using your debit card and pin.
September 27th, 2017 at 3:46:56 PM
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I wouldn't count too much on a players club statement; Most of mine that I've looked at over the years were pretty far off. It might make for good corroborating evidence, but could be rejected if that's the only thing you have. And if you're only talking a few K in wins then the odds of being audited for that are pretty close to nil.
I think the date/time/location/machine # thing is ridiculous although I know that's the standard the IRS has been pushing for years. Hell, in a couple of hours I can do an entire ring around the 4 Queens Palace bar. I'm supposed to write down every machine number when there can be 100's every day? I doubt it would ever come to this, but I bet if you appeared before a judge he'd agree that's kind of excessive. All they really need to see is some kind of accounting that shows wins and losses.
If I'm going to a single local casino I know what I go in with, and then what I go out with. Then I log date, place, starting funds, ending funds and profit/loss in a gambling log.
If I'm somewhere with multiple casino's every time I leave my hotel room I take note of what I'm starting with, then when I return I write what casino's I was in, what I ended up with, and the profit/loss and put it in my log.
I'm not saying my way will work, but I suspect it would be fine.
BTW, I believe there are apps for smart phones for gambling logs.
I think the date/time/location/machine # thing is ridiculous although I know that's the standard the IRS has been pushing for years. Hell, in a couple of hours I can do an entire ring around the 4 Queens Palace bar. I'm supposed to write down every machine number when there can be 100's every day? I doubt it would ever come to this, but I bet if you appeared before a judge he'd agree that's kind of excessive. All they really need to see is some kind of accounting that shows wins and losses.
If I'm going to a single local casino I know what I go in with, and then what I go out with. Then I log date, place, starting funds, ending funds and profit/loss in a gambling log.
If I'm somewhere with multiple casino's every time I leave my hotel room I take note of what I'm starting with, then when I return I write what casino's I was in, what I ended up with, and the profit/loss and put it in my log.
I'm not saying my way will work, but I suspect it would be fine.
BTW, I believe there are apps for smart phones for gambling logs.
September 27th, 2017 at 3:48:56 PM
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Quote: NathanThe thing I find confusing is still having to pay taxes on handpay money that ended up being LOST. You are DOWN if you put the $2,000 right back into tight machines. If I ran the IRS I would only tax on money that the gambler LEFT with not money he lost. Losing money and still having to pay taxes on lost money is really messed up.
You think that is messed up?
Here is what happened to me years ago. I bring 1k with me. I hit a 2k vp and a 1200 slot. Before the end of the night I lose it all. At the end of the year I cant itemize because my only deductions are basically my gambling losses only up to my w2g amount. Even though for the year I was down 5k you can only deduct your claimed winnings. So now I am paying approx $800 in taxes in addition to that 1k I lost that night. Plus the government was able to tax the casino at 50% of my loss.
In this scenario I lost 1800, casino wins 500, and the government wins 1300.
Expect the worst and you will never be disappointed.
I AM NOT PART OF GWAE RADIO SHOW
September 27th, 2017 at 3:59:43 PM
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Most gamblers are paying well over a 100% tax rate!
DUHHIIIIIIIII HEARD THAT!
September 27th, 2017 at 5:21:39 PM
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Quote: GWAEYou think that is messed up?
Here is what happened to me years ago. I bring 1k with me. I hit a 2k vp and a 1200 slot. Before the end of the night I lose it all. At the end of the year I cant itemize because my only deductions are basically my gambling losses only up to my w2g amount. Even though for the year I was down 5k you can only deduct your claimed winnings. So now I am paying approx $800 in taxes in addition to that 1k I lost that night. Plus the government was able to tax the casino at 50% of my loss.
In this scenario I lost 1800, casino wins 500, and the government wins 1300.
Oh crap! That's really disgusting! You have my sympathizing condolences.
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