Tax Question on Sports betting

Raiser · #1 11-09-2004, 12:38 PM

Hey guys. I did a search on this in the Sports Betting forum and came up with nothing, so I'll just ask.

My understanding of paying taxes on gamling winnings is that you pay on what you win and can deduct what you lose if you itemize. This makes poker still potentially profitable if most of your sessions are winners, but I can't see how a sports gambler can possibly make money under this structure. So, my question is:

Is the tax code the same for a sports bettor as any other gambler? And, if so, how the heck does anyone make any money?

Thanks in advance.

LaggyLou · #2 11-09-2004, 03:06 PM

???

You win $16000 over the course of a year. You lose $13000. Taxable income=$3000, regardless of whether you won playing poker, sports betting, blackjack, lotto or whatever.

Raiser · #3 11-09-2004, 04:25 PM

[ QUOTE ]
???

You win $16000 over the course of a year. You lose $13000. Taxable income=$3000, regardless of whether you won playing poker, sports betting, blackjack, lotto or whatever.

[/ QUOTE ]

Hmm, I think I just totally misunderstood the tax code.

Sorry for wasting space on the forum with this terribly stupid question - and thanks to those of you who read this, thought "this guy is a dipsh!t", and didn't say it [img]/images/graemlins/smile.gif[/img]

Easy E · #4 11-09-2004, 04:31 PM

[ QUOTE ]
You win $16000 over the course of a year. You lose $13000. Taxable income=$3000, regardless of whether you won playing poker, sports betting, blackjack, lotto or whatever.

[/ QUOTE ]

Not exactly correct. Taxable income is $16K, deductions are $13K. That is NOT the same as reporting taxable income of $3K

Just like poker, you report inidividual sessions.

Note- this is for those who itemize but are NOT considered "professional gamblers." I can't speak to the special rules that may apply there.