Have you seen this on VPFree about taxes?
I hope this is indeed a person who does not know what they're talking about, (always plenty of those), because such a change in federal tax reporting would be devastating.
Quote: bobbartopRight now there are a few, or maybe one, person on vpfree saying that the new tax changes will not allow deducting of gambling losses. Another person remarks that he needs to get another tax preparer, in other words, they don't know what they're talking about.
I hope this is indeed a person who does not know what they're talking about, (always plenty of those), because such a change in federal tax reporting would be devastating.
There is plenty of bad info out there. I believe originally you would not have been able to but as far as I have read you will be able to now. However the one issue is the standard deduction is like 24k or something for married people. So you may be able to deduct loses but you will essentially be paying taxes on the first 20k worth of jackpots unless you already have a ton of write offs.
So for me, without gambling we have 6k worth of write offs so I also just take the standard deduction. So if I hit a 30k jackpot and I have 30k write offs. I will be able to itemize and claim 36k, however since I would have already been able to take 24k I am essentially paying taxes on the 18k (24-6). In the past it would have worked the same way but our standard was only 12 so I would have been paying taxes on 6k (12-6).
Hope I wrote that where it makes any sense.
This.Quote: GWAEHowever the one issue is the standard deduction is like 24k or something for married people. So you may be able to deduct loses but you will essentially be paying taxes on the first 20k worth of jackpots unless you already have a ton of write offs.
I am not a lawyer or tax professional, but...
I believe the new tax law would definitely affect a casual gambler like me who may get a w-2g or two over the course of the year. Personally, for 2017, I will have two w-2g's to report. I can show an overall yearly gambling loss, and when I itemize, I can completely write these off.
However, if this were to happen this year, I would not be itemizing since the total amount of my deductions (including gambling losses) would be less than the standard deduction. So, I wouldn't be able to write them off.
So, yeah, people who get a few thousand in w-2g's are kind of screwed. I think they will definitely overall be paying less taxes in 2018 because of the higher standard deduction and lower rates, but they will not be benefiting as much as the typical non- (or non-w-2g-receiving-) gambler.
(Do I know what it means? lol Not really. But here it is)
Gambling Losses
NOW You can deduct gambling losses but only up to the amount of any gambling income during any given year.
NEW PLAN The bill clarifies that people (including many professional gamblers) who also deduct wagering expenses, such as the cost of travel to and from a casino, must add those expenses to their total losses before comparing that sum to their total taxable winnings for the purpose of making the overall deduction calculation. This clarification does not apply to expenses that gamblers incur beyond 2025.
Quote: bobbartopI mentioned that I saw something being discussed at vpfree. Well, this morning, there is more. Apparently someone posted an article word for word from the NYTimes, and it got deleted and replaced with a link. I will post below what it says about gambling:
(Do I know what it means? lol Not really. But here it is)
Gambling Losses
NOW You can deduct gambling losses but only up to the amount of any gambling income during any given year.
NEW PLAN The bill clarifies that people (including many professional gamblers) who also deduct wagering expenses, such as the cost of travel to and from a casino, must add those expenses to their total losses before comparing that sum to their total taxable winnings for the purpose of making the overall deduction calculation. This clarification does not apply to expenses that gamblers incur beyond 2025.
that seems like the same thing.
Quote: bobbartopGambling Losses
NOW You can deduct gambling losses but only up to the amount of any gambling income during any given year.
NEW PLAN The bill clarifies that people (including many professional gamblers) who also deduct wagering expenses, such as the cost of travel to and from a casino, must add those expenses to their total losses before comparing that sum to their total taxable winnings for the purpose of making the overall deduction calculation. This clarification does not apply to expenses that gamblers incur beyond 2025.
How I read it:
NOW: You can deduct losses equal to the amount that you won, in your current year. You can't offset income from other sources.
NEW: You can deduct losses, plus incidentals related to gambling, equal to the amount that you won in your current year. You still can't offset income from other sources. This should actually be good, since it means, if you have net winnings of 1000, but took a 1500 flight to get to the casino, you still incurred a loss, thus no additional tax burden.
Quote: VenthusHow I read it:
NOW: You can deduct losses equal to the amount that you won, in your current year. You can't offset income from other sources.
NEW: You can deduct losses, plus incidentals related to gambling, equal to the amount that you won in your current year. You still can't offset income from other sources. This should actually be good, since it means, if you have net winnings of 1000, but took a 1500 flight to get to the casino, you still incurred a loss, thus no additional tax burden.
I believe you will have to meet the burden of claiming to be a professional gambler to be able to deduct the other expenses.
