Taxes, Professional, Schedule C, Question

[TwiceShotPhil]

Sorry for this question but I get so many hits when I try to search that I can't get anything.
So... as a pro I use Schedule C and report losses on...?
Schedule A? The instructions for A say that line 27 gambling deductions cannot exceed winnings reported on 1040 line 21. But if I file Schedule C, line 1040-21 is empty.
Schedule C, Part V? Seems likely but I can find nowhere that says "yes".
I would prefer that people who are not CERTAIN not answer since the IRS is not much fun to deal with.
Thanks.

[SinCityGuy]

In short, if you file under Schedule C, you can report your net winnings. You must also pay self-employment tax, but you can claim a lot of deductions (mileage, computer equipment, books, software, etc.)

If you file under the standard return, you must report your gross winnings as income, and your losses as an itemized deduction. You don't have to pay self-employment tax, but you can't deduct your other poker related expenses.

[tek]

You are correct, sir. Also, using Schedule C will increase your chances of being audited. But that is besides the point. You need to choose the filing methed that legitimately saves you the most.

my 1999 return was audited. I use Schedule C for stocktrading (Schedule D is the one used by regular investors). It was a simple cut-and-dried matter. I brought in my documents, they copied them and I left. A few weeks later the agent sent me a letter stating that they accept my return as filed.

[MicroBob]

[ QUOTE ]
my 1999 return was audited. I use Schedule C for stocktrading (Schedule D is the one used by regular investors). It was a simple cut-and-dried matter. I brought in my documents, they copied them and I left. A few weeks later the agent sent me a letter stating that they accept my return as filed.

[/ QUOTE ]



Obviously all audits don't run so smoothly...but having filed as a pro-gambler via sched-C for the very first time I am somewhat relieved that IF I am audited (which I certainly acknowledge is a possibility) that the process COULD work out as easily as it did for you.


No point getting nervous about the possibility obviously....but an audit is something I am aware could happen.