Re: Taxes & corporations
recreational: report all wins separately. this bumps up your adjusted gross income. deduct all losses separately in a different section. no writeoffs, no self-employment taxes.
professional: report the sum of all wins and losses together. allows writeoffs, requires self-employment taxes.
the angle people commonly try to shoot here is to make an s-corporation or llc (which passes taxes through to the individual), claiming that "their business is gambling" so that they can lump theirs wins and losses together without paying self-employment tax. it's illegal. as such, there is no legal advantage to forming a corporation as it pertains to gambling income.
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