gambler
gambler
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February 28th, 2011 at 5:10:45 PM permalink
Are you required to pay taxes on comps that you receive from casinos? If so, which ones?

I would guess that if you get a free or discounted room from a casino, that you would not have to pay taxes on that. However, what happens if your casino host gives your wife a $1,000 shopping spree at a nearby shopping mall? Or if they comp a whale a free car? Anyone know?
JIMMYFOCKER
JIMMYFOCKER
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February 28th, 2011 at 5:48:22 PM permalink
No, comps are completely tax free.
DJTeddyBear
DJTeddyBear
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February 28th, 2011 at 6:17:17 PM permalink
Hate to bust your bubble Jerry, but comps are like any other kind of earnings or gifts.

You ARE supposed to itemize them on your tax return.

However, they MIGHT be able to be classified as gambling earning, allowing you to include more of your verifiable losses for a net of zero.
I invented a few casino games. Info: http://www.DaveMillerGaming.com/ 覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧覧 Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
SOOPOO
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February 28th, 2011 at 6:22:48 PM permalink
Quote: JIMMYFOCKER

No, comps are completely tax free.



Where do you get your information? I would guess that technically comps are a taxable event, but just not on the radar at low levels. I can assure you that corporations deduct the costs of comps as a business expense. The comp receiver of course would rather consider the comp a 'gift' and not income, but I don't think that a corporation 'gifting' a person money passes the sniff test.
SOOPOO
SOOPOO
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February 28th, 2011 at 6:25:41 PM permalink
Quote: DJTeddyBear

Hate to bust your bubble Jerry



Did you call Mr. Focker Jerry? Ooooooohhhhhhh
gambler
gambler
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March 1st, 2011 at 8:58:57 AM permalink
Quote: DJTeddyBear

You ARE supposed to itemize them on your tax return. However, they MIGHT be able to be classified as gambling earning, allowing you to include more of your verifiable losses for a net of zero.



If this is the case, how many of you report comps on your tax return? Should this be done at all levels of comps? From drinks, to rooms, to food? Or should it be done for bigger gifts, like airfare, trips, suites, gift certificates, cars, etc.?
Wizard
Administrator
Wizard
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March 1st, 2011 at 9:36:58 AM permalink
It is my understanding that according to the letter of the law, comps ARE subject to taxes. The recipient would be expected to itemize the fair value.

There was a piece on 60 Minutes a long time ago about the Los Angeles police chief not declaring comps his wife received in Vegas.
It's not whether you win or lose; it's whether or not you had a good bet.
SOOPOO
SOOPOO
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March 1st, 2011 at 9:48:52 AM permalink
Another example like this is airline miles you personally accrue while doing business travel paid for by someone else. It is crystal clear that those miles are earned income, but I would guess the number that voluntarily report them is pretty low.
SFB
SFB
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March 1st, 2011 at 10:36:08 AM permalink
Quote: SOOPOO

Another example like this is airline miles you personally accrue while doing business travel paid for by someone else. It is crystal clear that those miles are earned income, but I would guess the number that voluntarily report them is pretty low.



SooPoo:

Actually, the IRS has a real clear IRB on this very subject. Airline miles are NOT considered taxable income. So, if you accrue a million miles, and turn them into airplane tickets, that you use, then you are good to go. If you can convert them into cash, and do so, then that is a taxable event. Many larger corps are collecting all the airline miles for thier benefit now. THey do not go to the employees.

Not like comps. They are to be included in your gambling winnings. To be offset by your gambling losses.

SFB
JIMMYFOCKER
JIMMYFOCKER
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March 1st, 2011 at 10:44:00 AM permalink
Quote: SFB

SooPoo:

Actually, the IRS has a real clear IRB on this very subject. Airline miles are NOT considered taxable income. So, if you accrue a million miles, and turn them into airplane tickets, that you use, then you are good to go. If you can convert them into cash, and do so, then that is a taxable event. Many larger corps are collecting all the airline miles for thier benefit now. THey do not go to the employees.

Not like comps. They are to be included in your gambling winnings. To be offset by your gambling losses.

SFB




Be absolutely certain to report those buffet comps and free t-shirts from Station Casinos, not!

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