new to both taxes and poker

[ QUOTE ]
And Can a "session" be a whole day? Or is a session every time you get up and sit back down? (i.e., if
you sit down at the tables and play for a couple hours, then break for lunch, and go back, does this count as a new session?

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I'd like to see an official answer to this question too. I'd assume the more detail the better, but just curious if there is a "right" answer.

[Russ Fox]

I wrote an article about the definition of a session. It's available here on Chuck Humphrey's gambling law website.

Russ Fox

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i wonder this too.. for instance, say i go to the bank, withdraw $10k cash, then go to foxwoods and lose like $8k or so.. i tell the IRS i lost $8k at foxwoods. but there's no record of it. so what do they do, take my word for it? also, what if i just withdrew the $10k and threw it into a safe and SAID i lost it at foxwoods. what is the difference?

[/ QUOTE ]

The difference is about 3 to 5 years in a federal pen

[CardSharpCook]

Do non-poker gambling losses get deducted? I mean I know it isn't profitable to play craps, so if I play craps, am I still doing so as a professional gambler or have I now become a recreational gambler?

I agree that paying taxes on gambling winnings is an area with a lot of gray and all that. I had another question. I have been playing poker "recreationally" for a few years before I started giving the game any seriousness, therefore I was more of a loser than a winner. Do we get to disount these losses when filing? Now that I am winning more than losing, do I report winnings? The thing is, I did not file in the years that I lost money, so I'm not sure on that matter although I have heard that you can claim a deduction on gambling losses. Confused, Mike

[Niediam]

[ QUOTE ]
I agree that paying taxes on gambling winnings is an area with a lot of gray and all that. I had another question. I have been playing poker "recreationally" for a few years before I started giving the game any seriousness, therefore I was more of a loser than a winner. Do we get to disount these losses when filing? Now that I am winning more than losing, do I report winnings? The thing is, I did not file in the years that I lost money, so I'm not sure on that matter although I have heard that you can claim a deduction on gambling losses. Confused, Mike

[/ QUOTE ]

Loses do not carry over from one year to the next.

[ptmusic]

[ QUOTE ]
[ QUOTE ]
I agree that paying taxes on gambling winnings is an area with a lot of gray and all that. I had another question. I have been playing poker "recreationally" for a few years before I started giving the game any seriousness, therefore I was more of a loser than a winner. Do we get to disount these losses when filing? Now that I am winning more than losing, do I report winnings? The thing is, I did not file in the years that I lost money, so I'm not sure on that matter although I have heard that you can claim a deduction on gambling losses. Confused, Mike

[/ QUOTE ]

Loses do not carry over from one year to the next.

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Some business losses can carry over and be used as deductions the next year. Not true with gambling? (I don't know).

[Russ Fox]

Gambling losses never carry over from one year to the next, even for professionals. You may only claim gambling losses up to the amount of your winnings in any given year.

-- Russ Fox, EA

[lozen]

[ QUOTE ]
i wonder this too.. for instance, say i go to the bank, withdraw $10k cash, then go to foxwoods and lose like $8k or so.. i tell the IRS i lost $8k at foxwoods. but there's no record of it. so what do they do, take my word for it? also, what if i just withdrew the $10k and threw it into a safe and SAID i lost it at foxwoods. what is the difference?

[/ QUOTE ]

Well You cant write that off against other earnings.

Best way for the IRS and Im CDN with Limited US tax knowledge but know a bit. You keep a spreadsheet or notebook with your session or daily results. Detail weather Live or Online. You can also track other gambling related expenses. ie Vehicle expenses if you driver to the Casino along with all related expense. Poker Books, Golf with fellow poker buddies. Vegas trip if you do not live in Vegas would also be deductible. Key thing is have up to date records and receipts. Also if you have a loosing year I am 90% certain you can carry forward those losses. Weather its the IRS or Revenue Canada dont mess around. If you caught once your flagged.

[raze]

I am assuming this thread applies to American citizens only. Is there somewhere to go for information on Canadian tax/gambling law?