Need book on Fed and State taxes for Gambling Winnings
 

I'm looking for a book that tells me what types of records I need to keep for claiming wins and losses for filing tax returns. Has any one read Gambling and Taxes III: Turn Losses Into Saving by Frank Sutherland or any other book?

Mark

Check Cardplayer for old issues
 

online, search by taxes. There is a couple (last name Rouche?) who put together a book that should meet your needs.

Re: Need book on Fed and State taxes for Gambling Winnings
 

If you are getting into THAT neibhorehood - consult a CPA. They actually know all sorts of stuff!

Re: Need book on Fed and State taxes for Gambling Winnings
 

[ QUOTE ]
I'm looking for a book that tells me what types of records I need to keep for claiming wins and losses for filing tax returns.

[/ QUOTE ]

Yolanda a Roger Roche put out a booklet which I think they
update every few years that's quite good. These are the
folks who write for Card Player, and I think they make a
great deal of sense.

[ QUOTE ]

Has any one read Gambling and Taxes III: Turn Losses Into Saving by Frank Sutherland or any other book?

[/ QUOTE ]

I haven't read the book by Sutherland so it's unfair for
me to comment on it. Nonetheless, I urge caution. There
are a lot of folks who advise folks to play "fast and loose"
with the US tax code, a strategy I cannot endorse. I don't
know if Sutherland is one of these, but his subtitle, "Turn
Losses Into Savings" scares the bejeezus out of me.

BTW, while I think consulting with a CPA is a good idea, in
my experience few of them actually know their stuff when it
comes to gambling. I had to direct my last tax preparer to
not just claim net winnings as income--twice--to get her to
actually do it right. There's no substitute for being
informed on this matter.

Re: Need book on Fed and State taxes for Gambling Winnings
 

See the links below for the IRS info.
In Pub. 529 look on page 11.

It has what information a diary should have.
IRS Tip

IRS Publication 529

Well, it\'s clear
 

If you don't itemize, you must claim all winning sessions as income and may not deduct any losing sessions.

So, for the sake of argument, say you play 2/4, 20 hours per week and average over the course of 50 weeks 1.5 BB per hour. Your net would be $6,000 per year. Now for further argument let's assume your winning sessions outnumbered your losing sessions 2-1 and your average win/loss was identical.

Thus to be +$6,000 during the year, your winning sessions would total +$12,000 and your losing sessions would total -$6,000.

So that person who earned $6,000 playing poker in 2003 would pay taxes on $12,000 *unless* he or she was able to itemize deductions.

So, in effect, the low-limit player who doesn't own property is screwed.

Can\'t you itemize regardless?
 

There is no point for most people who'd get the standard deduction to do so, since itemizing would get them back less $$ than taking the short form return.

However, for 6 grand gap, I think I'd itemize anyway, unless that wouldn't make enough difference.