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Old 12-01-2005, 06:29 PM
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Default Re: Dannenmann interview on

I have my income tax book right in front of me.

"Gambling payoffs, no matter how large or small, are taxavle and should be reported on your federal income tax return. This includes the fair market value of noncash prizes such as cars, trips, and dinner coupons. The provision applies to winnings from all sources, from casinos to office pools."

The amount is added into your gross income broadly concieved. You can deduct your gambling losses only to the extent of your gambling winnings. If you are a professional gambler, meaning you derive your income from gambling and have no other job, you may deduct gambling losses beyond the extent of your winnings. Steve Dannenmann is in the highest federal tax bracket so his taxes on his winnings would of been 35% for federal income taxes plus whatever his state income taxes are.

Can you pay a different amount if you are a professional gambler? Like pay as if you were a business and not a lottery winner?

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To sum up, no. Your tax rate would be the same as a plumber or a lawyer or anyone else when it comes to personal income. However, the difference is that as a professional gambler you may deduct losses beyond your winnings, so if you have a down year you could take a loss on your business. I am not exactly sure what benefits you would get from doing this though.

I would also imagine as a professional gambler you could write off things like airfare to travel to the casino/tourny/whatever, and all costs associated with gambling online like your internet, computer, etc. However, in order to write off your computer you would have to prove it is used for money making purposes only.
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