ahiromu
ahiromu
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January 13th, 2013 at 9:00:08 AM permalink
$36k Blackjack Win Stolen

Gist of the story: Man wins 36k one night playing blackjack, cashes out. Man gets money stolen from him while laying in his bed.

Assumption: The 36k is gone, he will never see that money again. Story is 100% legit, no funny business just a robbery.

Questions:

1. When you cash out over 10k (not a slot win) are taxes automatically taken out, or is there just a report processed to say that you cashed out that much?

2. Can he deduct the 36k that was stolen from him?

Basically two situations came across my mind:

A. (Can't deduct anything, his tax bracket is over what was withheld) - He still owes the IRS money.

B. (Can deduct what was stolen) - Still gets some money back from his original withholding.



I've never done my own taxes, my dad's a CPA and has always done the vast majority of it. This will be the first year I do my own taxes (yay) - my gambling is so small I won't be dealing with it at all. Net loss anyways :(.
Its - Possessive; It's - "It is" / "It has"; There - Location; Their - Possessive; They're - "They are"
toadman15241
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January 13th, 2013 at 9:09:41 AM permalink
1. Just a report.
2. Yes. See 26 U.S.C. 165(a) and 26 CFR 1.165-8.
ahiromu
ahiromu
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January 13th, 2013 at 9:11:58 AM permalink
Quote: toadman15241

1. Just a report.
2. Yes. See 26 U.S.C. 165(a) and 26 CFR 1.165-8.



Thanks, appreciate it.
Its - Possessive; It's - "It is" / "It has"; There - Location; Their - Possessive; They're - "They are"
ThatDonGuy
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January 13th, 2013 at 9:28:07 AM permalink
Loss from theft is deductible, if he can prove that it was stolen. If I am reading the tax forms correctly, the amount that can be deducted is $35,900 minus 10% of his adjusted gross income (i.e. income before deductions and exemptions - and yes, the 36K is still counted as income as gambling winnings are treated separately from losses). Withholding is irrelevant.
ahiromu
ahiromu
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January 13th, 2013 at 9:33:53 AM permalink
Yeah, my thought process on the withholding was it would have been nice for him to keep something.
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toadman15241
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January 13th, 2013 at 9:42:12 AM permalink
This is called the 10% rule and is codified at 26 USC 165(h)(2).
AxiomOfChoice
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January 13th, 2013 at 10:30:26 AM permalink
This guy doesn't have homeowner's or renter's insurance?

Pretty much everyone who owns a house has homeowner's insurance (most banks require it as a condition for getting a mortgage). Renter's insurance is generally optional, but really really cheap. When I had my car and renters' insurance with the same company, the multi-policy discount for having both was larger than the total for the renter's insurance (in other words, it cost less money to have it than not to have it). I am with different companies now, but I think I pay about $100/year for renter's insurance.
DRich
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January 13th, 2013 at 10:51:25 AM permalink
Quote: AxiomOfChoice

This guy doesn't have homeowner's or renter's insurance?

Pretty much everyone who owns a house has homeowner's insurance (most banks require it as a condition for getting a mortgage). Renter's insurance is generally optional, but really really cheap. When I had my car and renters' insurance with the same company, the multi-policy discount for having both was larger than the total for the renter's insurance (in other words, it cost less money to have it than not to have it). I am with different companies now, but I think I pay about $100/year for renter's insurance.



Homeowners insurance usually caps the amount they will reimburse you for cash. I recently filed a claim with Allstate and they would only reimburse $200 for the cash stolen.
At my age, a "Life In Prison" sentence is not much of a deterrent.
AxiomOfChoice
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January 13th, 2013 at 10:52:18 AM permalink
Wow, really? That sucks. I need to check my policy.
AlanMendelson
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January 13th, 2013 at 11:00:52 AM permalink
A couple of things:

1. Why bring so much cash up to the room? Why not leave it with the cage or take a check?
2. Unlikely that a table player would have taxes withheld on any win.
3. He might not owe the IRS anything if at the end of the year he can document that his casino losses offset his wins.
4. Why bring so much cash up to the room? Why not leave it with the cage or take a check?
5. Why bring so much cash up to the room? Why not leave it with the cage or take a check?
Venthus
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January 13th, 2013 at 11:07:21 AM permalink
According to the article, he was robbed at home and was unaware he could get a check until all the cash was counted out and packaged for him.

What caught my eye in this story is that 36k is 'a year’s salary, all in one night' and 'the answer to everyone’s debt around me'. Maybe I'm just too conservative, but playing 3% of your salary in a single session, when people you're concerned about are in debt enough to need an 'answer' for it seems a bit risky, especially since he's a regular.
MakingBook
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January 13th, 2013 at 11:30:14 AM permalink
Quote: AlanMendelson

Why bring so much cash up to the room? Why not leave it with the cage or take a check?



He took the cash home. The "room" is his bedroom. There is no hotel.

There are lots of thugs that hang around Hollywood Columbus. The casino was built in the middle of the ghetto.
The thieves probably got the winners address from one of their thug buddies that work the cage.

Last month I cashed $2,100 chips and was "axed" for my players card. When I said I didn't have one,
the "brotha axed" for my name and address. Of course, I provided a phony name & address.
"I am a man devoured by the passion for gambling." --Dostoevsky, 1871
ahiromu
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January 13th, 2013 at 1:02:03 PM permalink
Quote: Venthus

What caught my eye in this story is that 36k is 'a year’s salary, all in one night' and 'the answer to everyone’s debt around me'. Maybe I'm just too conservative, but playing 3% of your salary in a single session, when people you're concerned about are in debt enough to need an 'answer' for it seems a bit risky, especially since he's a regular.



I agree completely. Also, to win 36k in five hours would require him to significantly overbet his bankroll. I could see him wagering 1% of his annual net income at times which is just insane.
Its - Possessive; It's - "It is" / "It has"; There - Location; Their - Possessive; They're - "They are"
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