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.
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: beachbumbabs
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.
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 I have receipts showing amounts withdrawn, dates, times, from the casino itself.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.
just write off that $2000 on line 28 of Schedule A on your 1040 when you file your taxes.Quote: Nathan
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.
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.
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.