#11
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Re: Generic tax question
only if you file as a professional (and then you'll be subject to self-employment taxes). recreational gamblers are expected to list all wins together, deduct all losses separately, and be able to provide proof of all of it.
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#12
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Re: I am a losing poker player (gambler), what can I do with TAXES?
Kenny,
Cheating on your taxes after doing a number of cashouts from online is asking for big trouble. |
#13
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Re: Generic tax question
Isn't the term "hobby" not recreational?
TT |
#14
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Re: I am a losing poker player (gambler), what can I do with TAXES?
You are out of luck if you're a net loser. You must claim all winnings as ordinary income on form 1040, and all losses (not to exceed winnings) as an itemized deduction on Schedule A.
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#15
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Re: Generic tax question
No. IRS Publication 529 expressly forbids that.
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#16
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Re: Generic tax question
The reason why I ask, is that (if I recall correctly) any self employed individual who files 1040 + schedule C cannot operate at a loss for 4 years in a row. In the event this occurs, the business is now considered a "Hobby".
Its been some time since I have operated at a loss, so things might have change from the way it was first described to me. TT [img]/images/graemlins/club.gif[/img] |
#17
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Re: I am a losing poker player (gambler), what can I do with TAXES?
I know that a lot of people like to inflated their winrates but usually they do that in the positive direction and have not been so incredibly negative.
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#18
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Re: Generic tax question
So what do you do if you simply do not have the records? I have won a lot more money than I ever felt possible on-line. I know how much I have won and intend to report it, but have no idea of my individual session results.
Paul |
#19
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Re: Generic tax question
If you dont have the records - just file showing income for your net winnings (basically, what you cash out plus any increase in your bankroll for the year).
In the 0.01% chance you get audited, you'll probably have to explain that to them and show bank records or something to prove your winnings. They'll probably scold you for not having accurate records but if you claim the income and pay the tax in good faith, that would probably be the end of it. |
#20
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Re: Generic tax question
The problem with filing a schedule C for purposes of reporting gambling wins/losses is that the IRS is very strict about who they do and do not allow to file that way.
For example, if you tried it the first time this year and were reporting a loss, I can virtually guarantee they will deny it on the grounds that since you never reported gambling wins in excess of losses over the past few years, you did not have an "expectation of winning" and thus could not call yourself a professional gambler. They treat gambling much different than any other side business you run from home. |
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