Jellinjo13's Blog
Posted by Jellinjo13
Oct 16, 2013
Oct 16, 2013
Tax Question on Blackjack Winnings
Hi everyone,This is my first participation on this board and my question below may already have been discussed. An answer will be appreciated either way:
Can past yearly net loss(es) be carried over to a following year in blackjack? (like it is done for capital gains/losses in the sock market?)
Comments
No, they can't. If you're audited, you'll need pretty solid proof that the losses occurred and that they occurred in tax period in which you claimed them. Most people keep a detailed journal.
rdw4potus
October 16th, 2013 at 8:40:29 am No, they can't. If you're audited, you'll need pretty solid proof that the losses occurred and that they occurred in tax period in which you claimed them. Most people keep a detailed journal.
Thanks for the reply rdw4potus.
. Would the same answer apply if one is established as a professional gambler?
My understanding is that it's very hard to get the IRS to agree that gamblers with annual net losses are professional gamblers. If you successfully claim gambling as a profession, and if you have annual net losses that occurred in a period in which gambling was your profession, then I think you could carry those losses forward just like any other business owner could. But those carried forward losses, and any other deducted expenses, would be in jeopardy for the entire look-back period upon audit if the IRS decides that you're not really a professional gambler.
"Tax help for professional gamblers" by J. Scott, et al. is a good resource.
Blackjack players have an easier time than poker tournament or video poker players since you don't really have W2-Gs for blackjack. (Of course I declare all my table game winnings :) !)
" (Of course I declare all my table game winnings :) !) " Hopefully they offset the craps table !