[321Mike]

[ QUOTE ]
Again, I dont know how to do it "properly". If the IRS wants it done "properly", they should make it easy to do

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It is easy to report your winnings properly:
1) Track your wins and losses on a per session basis. The term "session" is flexible (it has to be because of the many different types of gambling out there), but you can safely use a daily numbers at the same game and limit. That is, playing .5/1 HE, 1/2 HE, and 1/2 Omaha equals three separate sessions for the day. You can use PT, a spreadsheet, or just a pen and paper as long as you record the results daily.

2) When you file your taxes, the total of all your winning sessions is added to your gross income. And if you itemize, the total of all your losing sessions may be deducted.

It's that easy! Of course, you can look for other tax breaks like the sales tax credit, but that doesn't make you any different than anybody else looking to pay less taxes. That's what accountants are for.