Gambling Tax and Accounting Question- acceptable forms of proof of losses
August 23rd, 2011 at 8:35:11 PM
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Hello,
It is my general understanding that you can only write off your gambling losses only against your wins and that you have to itemize your winnings and losses separately when filing taxes. However, in the rare case that you get auditied, I was wondering if the Wizard or anyone else would know if the below items/situation would be acceptable proof of losses to the I.R.S
a. Payment of Markers- if you take out a marker and pay it back. Will the receipt they give you when paying it back be a valid proof of your losses in case of an audit?
b. Losing Sportsbook tickets- if you save your losing sports book tickets, would that be valid proof of your losses in case of an audit?
b1. Hypothetically, if you loitered around a sportsbook all day and collected losing tickets from other people or losing tickets that are lying around, would those tickets be valid proof of losses in the eyes of the I.R.S? And if you were to get audited, would the I.R.S actually further investigate the matter with the casino to match the losining ticket number with the actual player (in the case you used a ticket you found as "proof of losses" and the player who actually lost uses their players card)?
c. Win/Loss Statements- in the case of an audit, would the I.R.S accept a win/loss statement that casino's have on file for you each year?
Sorry for the odd question, I was just wondering of ways I could write off my gambling losses in the rare case I hit a taxable jackpot and therefore, what are acceptable "proof of losses" to the I.R.S in the even rarer case that the IRS would audit me after I filed my taxes.
-Thank you
It is my general understanding that you can only write off your gambling losses only against your wins and that you have to itemize your winnings and losses separately when filing taxes. However, in the rare case that you get auditied, I was wondering if the Wizard or anyone else would know if the below items/situation would be acceptable proof of losses to the I.R.S
a. Payment of Markers- if you take out a marker and pay it back. Will the receipt they give you when paying it back be a valid proof of your losses in case of an audit?
b. Losing Sportsbook tickets- if you save your losing sports book tickets, would that be valid proof of your losses in case of an audit?
b1. Hypothetically, if you loitered around a sportsbook all day and collected losing tickets from other people or losing tickets that are lying around, would those tickets be valid proof of losses in the eyes of the I.R.S? And if you were to get audited, would the I.R.S actually further investigate the matter with the casino to match the losining ticket number with the actual player (in the case you used a ticket you found as "proof of losses" and the player who actually lost uses their players card)?
c. Win/Loss Statements- in the case of an audit, would the I.R.S accept a win/loss statement that casino's have on file for you each year?
Sorry for the odd question, I was just wondering of ways I could write off my gambling losses in the rare case I hit a taxable jackpot and therefore, what are acceptable "proof of losses" to the I.R.S in the even rarer case that the IRS would audit me after I filed my taxes.
-Thank you
August 23rd, 2011 at 8:53:40 PM
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Simply keep a log of each session win/loss
1. Game
2. Time start/end or aprox
3. Balances cashed in/ cashed out
4. location name of casino
5. Date
6. No matter how small of win/push/loss keep a log
7. Wins and losses must be seperate (if you get up from 1 table to move to another its a new log entry)
8. Doon't forget 1-7
The courts have ruled that if a person keeps a detalied log it shall be valid evidence for the gambler.
1. Game
2. Time start/end or aprox
3. Balances cashed in/ cashed out
4. location name of casino
5. Date
6. No matter how small of win/push/loss keep a log
7. Wins and losses must be seperate (if you get up from 1 table to move to another its a new log entry)
8. Doon't forget 1-7
The courts have ruled that if a person keeps a detalied log it shall be valid evidence for the gambler.
August 23rd, 2011 at 9:50:44 PM
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If you're a carded slot player, the win/loss should have everything on it you need. The only time it gets tricky is when you play lots of games that aren't accurately tracked, like tables or poker. That's when the gambling log is useful.
To my knowledge, paying back a marker isn't evidence of either a win or loss. As for claiming fraudulent losses from sportsbook tickets, no comment.
To my knowledge, paying back a marker isn't evidence of either a win or loss. As for claiming fraudulent losses from sportsbook tickets, no comment.
"In my own case, when it seemed to me after a long illness that death was close at hand, I found no little solace in playing constantly at dice."
-- Girolamo Cardano, 1563
August 24th, 2011 at 7:37:02 AM
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If you got audited and presented thousands of other people's sports book tickets, you will owe a lot more than what you did in the first place. I don't doubt that the IRS agent will find this fishy.
I heart Crystal Math.
