Re: Setting up a Corporation for your gambling business
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Right. My point is that I don't get why anyone would want to be a professional gambler. Why don't I just stay non-professional and not file a schedule SE and not pay the extra taxes?
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Because people that don't have any other itemized deductions besides their gambling losses essentially lose their $4850 (for tax year 2004) standard deduction. They end up paying taxes on that $4850 at their highest marginal tax rate.
Also they cannot deduct expenses that can be deducted if you are qualified as a Pro. This is why you should find a specialized tax advisor and use the members here only as a guideline, including myself since I am not a qualified tax professional. I just study the tax code as carefully as I can and try not to make inaccurate representations nor generalizations.
Jimbo
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