Interesting tax question.
February 16th, 2015 at 2:09:19 PM
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Hey everyone, I have a tax question. Very hypothetical, but I'm curious. Let's say you visit the casino on Monday and win $200 on video poker, or video Blackjack...that is considered non-taxable. You then go back on Tuesday and win $300, again non-taxable....back on Wednesday and win $200, non-taxable again. My question is this: are the 3 wins considered separate non-taxable wins because all 3 are individually under $600, or do you now owe taxes because the winnings are $700 total?
In other words, in a crazier hypothetical: if you won $100 every day at video blackjack for an entire year, would you owe taxes on $36,500 or owe no taxes because you won a non-taxable amount of $100 365 times?
In other words, in a crazier hypothetical: if you won $100 every day at video blackjack for an entire year, would you owe taxes on $36,500 or owe no taxes because you won a non-taxable amount of $100 365 times?
February 16th, 2015 at 2:19:30 PM
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All gambling wins are taxable, not all are reported. In your above example, legally you owe taxes on $36,500, in the real world it would almost be impossible for the IRS to know that you owe taxes on $36,500 in gambling winnings.
February 16th, 2015 at 2:39:19 PM
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other examples of taxes owed that won't get reported:
- a snow blower bought this summer in some place like Boston, for cash. Somebody who really needs it offers more in cash than it is worth under normal circumstances. That capital gain, I think we all know, is not getting reported 99.99999...... % of the time
- sales taxes for items bought from, say, Amazon, where no sales tax was charge. Not sure what the percentage would be there [I did know a guy who reported them as owed and paid them]
- a generous guy giving gifts till he is up to the limit of what can be done tax free. He then serves a grand home cooked meal with truffles and wine etc to those same recipients. That is a gift over the limit and is supposed to be reported.
To my eyes there is a certain amount of honesty in not requiring you plug the parking meter when the meter patrol is not working [this always matches exactly], and not charging sales tax when there is no way the affected state can coerce payment from the seller.
- a snow blower bought this summer in some place like Boston, for cash. Somebody who really needs it offers more in cash than it is worth under normal circumstances. That capital gain, I think we all know, is not getting reported 99.99999...... % of the time
- sales taxes for items bought from, say, Amazon, where no sales tax was charge. Not sure what the percentage would be there [I did know a guy who reported them as owed and paid them]
- a generous guy giving gifts till he is up to the limit of what can be done tax free. He then serves a grand home cooked meal with truffles and wine etc to those same recipients. That is a gift over the limit and is supposed to be reported.
To my eyes there is a certain amount of honesty in not requiring you plug the parking meter when the meter patrol is not working [this always matches exactly], and not charging sales tax when there is no way the affected state can coerce payment from the seller.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
February 16th, 2015 at 2:44:04 PM
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Quote: odiousgambitother examples of taxes owed that won't get reported:
.
The most overlooked. You go to garage sales
during the week and take it all to the flea
market on the weekend and get a couple hundred
profit. Thousands of people do this on Ebay
too, 10's of thousands. None of the income
gets reported, or almost none.
"It's not called gambling if the math is on your side."
February 16th, 2015 at 3:52:00 PM
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Quote: EvenBobThe most overlooked. You go to garage sales
during the week and take it all to the flea
market on the weekend and get a couple hundred
profit. Thousands of people do this on Ebay
too, 10's of thousands. None of the income
gets reported, or almost none.
I always throw in a $1,490.00 or $1,650.00, etc., 'other income' as cash from Misc. Sales. Which would cover my butt or at least show some 'good faith' should I get an audit again. My last tax person suggested that and harped on the benefits of 'good faith' and making a mistake, versus blatantly omitting.
Bac79=Hazardous Material and Chemical person correcting other's mistakes. Non AP'er, I can't count cards, low intelligence. Sprinkles magical dust on the cards. Has a lucky monkey. Baby also has a green one. Sum it up: "It's okay just blame me, it's all my fault"! ( No one believes me--so I chose to stop posting)
