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two_dogs
10-31-2003, 12:08 PM
My question is this.Can you deduct the costs of books,software and isp from your online poker winnings?
I've seen a few posts on this but no answers.
Cyndie
10-31-2003, 12:20 PM
a definite "yes" if you make your living playing poker...a maybe if you don't... and some gray areas in between.
SamJack
10-31-2003, 12:27 PM
I don't believe there is any gray area. The answer is 'NO' is you are not a professional gambler.

Sam
Cyndie
10-31-2003, 01:35 PM
[ QUOTE ]
you must meet the "for profit" test described in Code Section 183... Thus if you are a "casual" and "sporadic" gambler who makes a profit three out of five years, you may be able to claim your gambling related expenses as a deduction on Schedule A but you may have to go all the way to Tax Court to prevail. If you gamble with "regularity" and "continuity" you will be considered a professional gambler and forced to file as a business.

[/ QUOTE ]

That seems kind of gray to me. Also would pay for the cost of the book if you got to deduct $100 to $200 extra one time...
squiffy
10-31-2003, 01:44 PM
There is almost always some grey area in any tax discussion, especially here, where he has provided us with ALMOST NO FACTS about his situation.

The first grey area is, how do you define making a living??? What if you make $30,000 a year playing poker. And $30,000 laying tile. What about if you make 10k poker 50k laying tile.
MtSmalls
10-31-2003, 01:51 PM
The quote referred to here is the "profit" test of defining the difference between a hobby and business (such as golf club making or quilting). If you pass the profit test, then you can deduct certain expenses.

In the case of gambling, you could probably make the argument that your travel costs, including hotel, could be deducted. However, I 'educational' materials would fall into a grey area that would be hard to define.

Professional advice would be called for, rather than opinion from this esteemed group....