Taxes on Comps

[Reckless_Abandon]

I'm a pro and am concerned about reporting comps. I've never really gotten any decent advice on this subject. The best response I've heard is don't worry about it unless it's a car or something.

Do I have to report drinks, meals, clothing, magazines, gift cards, and other merchandise? Is there a set amount that it can be under and not be taxable? How would I determine the value of the comp? Please indicate if you are a tax professional or a fellow pro.

Thanks

[tek]

Did they give you a 1099 or W2G for the comps? If not, then forget it.

[Reckless_Abandon]

No, there weren't any forms given as it was just lots of small comps from lots of places. I think my main concern is gift cards. I received several hundred dollars worth of gift cards and next year should be several thousand. It's documented through an online affiliate, although it's Canadian. I'm just a little concerned about this coming back to haunt me. I'm planning on reporting the gift cards unless I get some advice saying I shouldn't.

[DiamondDave]

Sometimes the authorities decide that comps can be accounted for as "gains from wagering, which are taxable.

http://www.ustaxcourt.gov/InOpHistoric/LIBBUTI.TCM.WPD.pdf

The petitioner lost large sums playing craps, and was eventually allowed to deduct losses to the extent of his gains (which were essentially the value of his comps).

[tek]

He received a 1099 MISC for his comps...

I still say that if you don't receive a W2G or 1099, the question is moot.

For example, does anyone pay taxes on their frequent flyer miles?