Need book on Fed and State taxes for Gambling Winnings

[Mark Heide]

I'm looking for a book that tells me what types of records I need to keep for claiming wins and losses for filing tax returns. Has any one read Gambling and Taxes III: Turn Losses Into Saving by Frank Sutherland or any other book?

Mark

[Easy E]

online, search by taxes. There is a couple (last name Rouche?) who put together a book that should meet your needs.

[Webster]

If you are getting into THAT neibhorehood - consult a CPA. They actually know all sorts of stuff!

[npc]

[ QUOTE ]
I'm looking for a book that tells me what types of records I need to keep for claiming wins and losses for filing tax returns.

[/ QUOTE ]

Yolanda a Roger Roche put out a booklet which I think they
update every few years that's quite good. These are the
folks who write for Card Player, and I think they make a
great deal of sense.

[ QUOTE ]

Has any one read Gambling and Taxes III: Turn Losses Into Saving by Frank Sutherland or any other book?

[/ QUOTE ]

I haven't read the book by Sutherland so it's unfair for
me to comment on it. Nonetheless, I urge caution. There
are a lot of folks who advise folks to play "fast and loose"
with the US tax code, a strategy I cannot endorse. I don't
know if Sutherland is one of these, but his subtitle, "Turn
Losses Into Savings" scares the bejeezus out of me.

BTW, while I think consulting with a CPA is a good idea, in
my experience few of them actually know their stuff when it
comes to gambling. I had to direct my last tax preparer to
not just claim net winnings as income--twice--to get her to
actually do it right. There's no substitute for being
informed on this matter.

[Cazz]

See the links below for the IRS info.
In Pub. 529 look on page 11.

It has what information a diary should have.
IRS Tip

IRS Publication 529

[Kurn, son of Mogh]

If you don't itemize, you must claim all winning sessions as income and may not deduct any losing sessions.

So, for the sake of argument, say you play 2/4, 20 hours per week and average over the course of 50 weeks 1.5 BB per hour. Your net would be $6,000 per year. Now for further argument let's assume your winning sessions outnumbered your losing sessions 2-1 and your average win/loss was identical.

Thus to be +$6,000 during the year, your winning sessions would total +$12,000 and your losing sessions would total -$6,000.

So that person who earned $6,000 playing poker in 2003 would pay taxes on $12,000 *unless* he or she was able to itemize deductions.

So, in effect, the low-limit player who doesn't own property is screwed.

[Easy E]

There is no point for most people who'd get the standard deduction to do so, since itemizing would get them back less $$ than taking the short form return.

However, for 6 grand gap, I think I'd itemize anyway, unless that wouldn't make enough difference.