Poker Winnings online & losses at the B&M casino

[profitman]

I've won about 15K playing 2-4NL hold'em online. When I go to the B&M poker room to play, I tend to play in limits that are higher then what I normally play and games i don't play, so I lose most of the time. I've lost close to 9K playing 20-40 Limit holdem and some 7card stud. Can I deduct 9K from 15k, so I only have to pay taxes on 6K. How do I prove my losses? I keep ATM receipts from the B&M casinos. But that's really all i have is casino atm receipts.

[tripdad]

yes, you would only need to pay taxes on 6K. as long as you keep records of your b&m sessions, you should have no problem whatsoever.

if you are worried about the IRS accusing you of padding your losses, don't. the burden of proof is squarely on their shoulders, not yours.

cheers!

ps: you may be able to deduct for mileage, airfare, hotel, food, etc...as well. check with your accountant to be sure.

[Kellon]

There has been a lot of really bad tax "advice" posted around here lately. From what I have observed, my genaral advice has to be: Don't ask any tax questions here, and don't pay any attention to anything you read. (Except mine, of course. /images/graemlins/grin.gif) Bits and pieces may be close to correct, but you won't know and can't be sure unless you are an attorney or a CPA, and even then...

In specific reply to the above post--

First, you cannot simply add up all you winnings and deduct all your losses and fill in the resulting number as gambling income. You are required to list your entire winnings as Other Income and then deduct your losses on Schedule A. Be aware that Internet poker is a relatively new phenonomon and the IRS does not appear, from the little research I have done, to have defined clearly what constitues a gambling session. It is possible you have to consider each on-line session separately, or maybe go day-by-day, or who knows. It's not like a casino where you can cash in and cash out and have pay slips to show. But, you should keep good records whatever you do.

Which leads to the statement in the second paragraph about burden of proof. It's just plain wrong. Don't believe it; don't rely on it.

GL, and be very careful out there.

Kellon