OnceDear
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OnceDear
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September 26th, 2017 at 12:42:17 PM permalink
Quote: Wizard

That 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.
If you are enjoying the game, you're already winning.
Wizard
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Wizard
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September 26th, 2017 at 1:07:19 PM permalink
Quote: OnceDear

Taxing 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.
It's not whether you win or lose; it's whether or not you had a good bet.
billryan
billryan
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September 26th, 2017 at 1:43:55 PM permalink
It is my understanding that several states do not allow you to deduct losses for state income tax purposes.
odiousgambit
odiousgambit
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September 26th, 2017 at 3:20:49 PM permalink
Quote: billryan

It 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
billryan
billryan
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September 26th, 2017 at 3:51:40 PM permalink
In the states with casinos that don't allow deducting losses, is it all losses anywhere or just those in the state itself?
Nathan
Nathan 
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September 26th, 2017 at 6:03:10 PM permalink
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.
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Ibeatyouraces
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September 26th, 2017 at 6:05:22 PM permalink
Quote: Nathan

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.


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RS
RS
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September 26th, 2017 at 7:50:37 PM permalink
Quote: Wizard

That 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.
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billryan
billryan
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September 26th, 2017 at 8:19:32 PM permalink
Quote: Nathan

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.



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.
billryan
billryan
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September 26th, 2017 at 8:22:07 PM permalink
Quote: billryan

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.


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