ChumpChange
ChumpChange
Joined: Jun 15, 2018
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October 12th, 2020 at 8:59:10 AM permalink
So I could get $100 freeplay from points on my card, use that and win a $10,000 jackpot and because it was during a free play session, there will be no attendent called offering a tax form? Hope the TITO can handle 5 digits.

I'd probably put half of that down at the cage as front money and come back another day and pick it up so there's no CTR.
darkoz
darkoz
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Thanks for this post from:
ChumpChange
October 12th, 2020 at 9:20:04 AM permalink
Quote: ChumpChange

So I could get $100 freeplay from points on my card, use that and win a $10,000 jackpot and because it was during a free play session, there will be no attendent called offering a tax form? Hope the TITO can handle 5 digits.

I'd probably put half of that down at the cage as front money and come back another day and pick it up so there's no CTR.



You would get a tax form, of course.

In theory you should be able to claim it as a rebate from freeplay.

In actuality, you would probably be denied and have to fight it in tax court.

Here is a question:

You buy a sofa at 50% off from a department store. The manufacturer has a special where you can send on the receipt and get a second sofa free. The department store then runs a special where you can pick up a second sofa free when purchasing a new one with that earlier receipt (which qualifies you for another free sofa from the manufacturer)

By the time you get done you have made a profit on sofas

Taxable?

Nope. Profit or no profit it's all sales rebates predicated on purchases.
For Whom the bus tolls; The bus tolls for thee
ChumpChange
ChumpChange
Joined: Jun 15, 2018
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October 12th, 2020 at 9:42:51 AM permalink
"Not to be combined with other offers."
Now do tires. I'm at 4/32nds of tread.
cmlotito
cmlotito
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October 12th, 2020 at 10:31:15 AM permalink
Quote: darkoz


Likewise Freeplay based on prior play is not taxable EVEN THE WINNING AMOUNT AFTER IT'S PLAYED for the same reason as cashback rebates



I have hit more than one jackpot on freeplay over the years. Each time I received a w2g and it was reported to the irs. While I don't doubt you i think taking the time to prove it to an auditor that I hit it on freeplay play would be difficult. The only way i know I hit it on free play was I have the freeplay window open when I took a picture. I just don't think it is worth the aggravation to fight it if audited.
Last edited by: cmlotito on Oct 12, 2020
cmlotito
cmlotito
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October 12th, 2020 at 10:37:51 AM permalink
That's weird. Its displaying my response as a quote. That's what I get for using my phone instead of computer.
darkoz
darkoz
Joined: Dec 22, 2009
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October 12th, 2020 at 10:43:26 AM permalink
Quote: cmlotito


Quote: darkoz



Likewise Freeplay based on prior play is not taxable EVEN THE WINNING AMOUNT AFTER IT'S PLAYED for the same reason as cashback rebates



I have hit more than one jackpot on freeplay over the years. Each time I received a w2g and it was reported to the irs. While I don't doubt you i think taking the time to prove it to an auditor that I hit it on freeplay play would be difficult. The only way i know I hit it on free play was I have the freeplay window open when I took a picture. I just don't think it is worth the aggravation to fight it if audited.


I agree.

I personally just pay taxes on JACKPOTS won with freeplay. It's not worth the argument. (especially if it's when I am using another player's card lol.

[EDIT by mod: OnceDear: Trying to fix quote tags]
Last edited by: unnamed administrator on Oct 13, 2020
For Whom the bus tolls; The bus tolls for thee
darkoz
darkoz
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October 12th, 2020 at 10:46:30 AM permalink
Quote: cmlotito

That's weird. Its displaying my response as a quote. That's what I get for using my phone instead of computer.



Edit your post.

The format quote is at the top of your post. Copy it to the bottom and delete the part that is wrong at the top
For Whom the bus tolls; The bus tolls for thee
AlanMendelson
AlanMendelson
Joined: Oct 5, 2011
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October 12th, 2020 at 10:55:43 AM permalink
Just a bunch of thoughts:

I thought all casino free play was a tax free rebate on losses.

Casino free play is like car rebates -- a tax free price reduction.

I never got a 1099 for a toaster from opening a bank account.

If a casino sent me a 1099 for free play it meant the casino was trying to take a business deduction on the free play it handed out. I'd avoid that casino.

Free play has no value. If you tax it, you tax zero.

If I opened a players card account and won a car then yes I'd expect a 1099. But if I won free play, the free play is worth zero. If I won cash I'd also expect a 1099.
darkoz
darkoz
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October 12th, 2020 at 12:02:43 PM permalink
Quote: AlanMendelson

Just a bunch of thoughts:

I thought all casino free play was a tax free rebate on losses.

Casino free play is like car rebates -- a tax free price reduction.

I never got a 1099 for a toaster from opening a bank account.

If a casino sent me a 1099 for free play it meant the casino was trying to take a business deduction on the free play it handed out. I'd avoid that casino.

Free play has no value. If you tax it, you tax zero.

If I opened a players card account and won a car then yes I'd expect a 1099. But if I won free play, the free play is worth zero. If I won cash I'd also expect a 1099.



A toaster isn't worth over $600.

If you joined a casino as a new membership and got over $600 that would be taxable.

However if the new membership is dependent on a purchase (ex. Get $1000 freeplay as a new member after earning xxx points gambling same day) then it's not taxable as it's a rebate.

Freeplay has no value but it turns into cash. The cash is still the rebate. Otherwise what's the point? Just like cashback from a credit card isn't cash till you withdraw it. Still not taxable
For Whom the bus tolls; The bus tolls for thee
billryan
billryan 
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October 12th, 2020 at 12:52:34 PM permalink
Quote: darkoz

A toaster isn't worth over $600.

If you joined a casino as a new membership and got over $600 that would be taxable.

However if the new membership is dependent on a purchase (ex. Get $1000 freeplay as a new member after earning xxx points gambling same day) then it's not taxable as it's a rebate.

Freeplay has no value but it turns into cash. The cash is still the rebate. Otherwise what's the point? Just like cashback from a credit card isn't cash till you withdraw it. Still not taxable



Are you saying that if I am playing my freeplay and get a dealt Royal on a $1 hundred play, it is not a taxable event?

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