#1
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I am a losing poker player (gambler), what can I do with TAXES?
So I lose on poker. And I lose on playing Blackjack, Roulette and Craps. I only have a rough idea of how much I loss totally over the year(s).
What should I do about it when I file my income taxes? Also, I make good salary on W-2? |
#2
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Re: I am a losing poker player (gambler), what can I do with TAXES?
if you want to be legal about it, i'm pretty sure you get screwed. you could try filing as a professional because you did play regularly and did have an expectation to win, which would allow you to lump your wins/losses. i would think in that case it would be less than the alternative. doing something like winning 100k and then losing 100k hurts if you file recreationally.
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#3
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Re: I am a losing poker player (gambler), what can I do with TAXES?
[ QUOTE ]
So I lose on poker. And I lose on playing Blackjack, Roulette and Craps. I only have a rough idea of how much I loss totally over the year(s). What should I do about it when I file my income taxes? Also, I make good salary on W-2? [/ QUOTE ] Wait a second. This is the same Kenny who plays 6-10 tables of PP 15/30 at the same time?? [img]/images/graemlins/confused.gif[/img] |
#4
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Re: I am a losing poker player (gambler), what can I do with TAXES?
Might I respectfully suggest either:
1) taking up a new hobby; or 2) adding me to your buddy list. |
#5
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Re: I am a losing poker player (gambler), what can I do with TAXES?
I'm not an accountant, but I'm reasonably sure you can't deduct gambling losses in excess of gambling winnings.
J |
#6
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Re: I am a losing poker player (gambler), what can I do with TAXES?
Astro,
Love most of your posts. However, your posts on taxes and legality of internet poker are not accurate. Since this is the tax thread I will just stick to that here. The following is taken from the IRS website (and is the first link to a google search of 'gambling income tax'): Topic 419 - Gambling Income and Expenses Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income. If you receive $600 or more in gambling winnings, the payer generally is required to issue you a Form W-2G (PDF). If you have won more than $5,000, the payer generally is required to withhold 25% of the proceeds for Federal Income Tax. If you did not provide your social security number the payer may have to withhold 28%. For more information on withholding, refer to Publication 505, Tax Withholding and Estimated Tax. You can deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Schedule A Form 1040, line 27. However, the amount of losses you deduct cannot be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information. Hope this clears up some misconceptions. I do not know if one can carryforward losses into a new tax year. But I am sure that a competent CPA can find the answer. |
#7
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Re: I am a losing poker player (gambler), what can I do with TAXES?
i have not said anything contrary to that, and i am 100% correct about the legal issues.
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#8
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Re: I am a losing poker player (gambler), what can I do with TAXES?
Ok. Well, since you post so often and are respected I think it would be helpful to change your wording. Because, when you say things like you can only 'lump' wins and losses as a professional, some people may construe that as: If you do not report as a professional gambler then you have to report winnings but cant deduct losses.
Bottom line is this: If anyone on this board needs tax or legal advice, it is best to seek qualified tax and legal counsel. |
#9
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Re: I am a losing poker player (gambler), what can I do with TAXES?
'lumping', To put together in a single group without discrimination, is the correct term for reporting the sum difference between a profit and a loss as it pertains to taxes as opposed to listing the profit and the loss separately (as is done when filing recreationally). i learned the use of it by discussing gaming taxes with multiple professionals.
what i said was not at all false, but i am willing to concede that i may be misleading in a vacuum. however, these topics have been covered at length in many other threads. if somebody uses any one of them as their sole source for professional tax advice, they deserve whatever bad things happen to them as a result of it. |
#10
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Generic tax question
I'm sure it's been discussed before. End of year, you have won (overall) $5,000 on party poker -- i.e., you went up $1,000, down $500, up $3,000, down $xxxx, etc., etc., etc. -- end of year you have $5,000 more than you deposited. Can you just report that as a $5,000 winning?
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