Satellite wins and taxes
I've just an entry into the Stars double-shootout WSOP satellite. If I were to win that sat, what are the tax consequences? Obviously, the prize itself (worth $11k) is taxable, but what are the tax implications if I go to the WSOP and bust out (the most likely scenario)?
Is the $10k entry fee considered a gambling loss, effectively making it a wash?
Or, is the entry fee considered an expense, deductible only if I file as a professional (which I'm not)?
Or is there a third possibility?
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