For tax purposes, do reload bonuses count as gambling winnings?

Keres · #1 01-11-2005, 06:06 PM

Do I just add the amount of the reload bonus to the amount of money I've won online? Or is it considered seperate?

Mike_S · #2 01-11-2005, 06:16 PM

Your kidding right?
If it is capital gains then call your CPA you would be better off getting advice from them.

RamGad · #3 01-12-2005, 01:29 AM

Think this is legit question, especially for Blackjack bonuses. If bonuses didn't count as income I would be considered a recreational losing player last year. If they do count, I'm ahead 10,000. Been wanting to know the answer to this too. Is is different for poker? Any advice would be appreciated.

josh1122 · #4 01-12-2005, 02:07 AM

Yes. I'm pretty sure that if my dog shat $100 then that would also be taxable income.

Luv2DriveTT · #5 01-12-2005, 02:10 AM

[ QUOTE ]
Yes. I'm pretty sure that if my dog shat $100 then that would also be taxable income.

[/ QUOTE ]

I think you missed the point of the question. A bonus is considered capital gains, however the question really should be if you can offset your bonuses AND gambling winnings together against your losses. The answer is yes. For a recreational gambler this is done on Schedule A. For a professional gambler this is done on a Schedule C.

TT [img]/images/graemlins/club.gif[/img]

josh1122 · #6 01-12-2005, 02:12 AM

Hmm...I guess it would have helped to read the post instead of just the title and then replying... [img]/images/graemlins/tongue.gif[/img]

RamGad · #7 01-12-2005, 02:41 AM

Thanks so much for the reply. I'm still very nervous about filing this year. When you say you "can" offset them, are implying that you don't have to? Also, if you gained then lost a bonus, isn't that technically income that you lost, therefore can you claim it as a loss? thanks again.

rg.

TaxGoddess · #8 01-12-2005, 06:10 AM

[ QUOTE ]
When you say you "can" offset them, are implying that you don't have to? Also, if you gained then lost a bonus, isn't that technically income that you lost, therefore can you claim it as a loss? thanks again.

[/ QUOTE ]

1. As a "recreational" player reporting US income, you can only deduct gambling losses to the extent of winnings, and only if you have enough deductions to itemize them on a Schedule A.

2. Yes, if you lose the bonus this loss is eligible to offset the bonus income, as noted in 1.

RamGad · #9 01-12-2005, 06:34 AM

Thanks guys. I have a couple more question that I've been meaning to ask. Are those H and R Block guys required to keep stuff confidential? I live in a state where online gambling is "illegal" so I'm not sure if I should take it to an accountant. Taxes are not my strongest suit though, so I'm sure I'd make some crucial error when filing.

I've even thought about moving to an Indian reservation, but I'm not sure if that is under Federal law and if it negates the online gambling law in Wa state. Any info would be greatly appreciated.

broiler · #10 01-12-2005, 08:42 AM

CPAs are required to disclose their confidentiality policy to their clients. This does not mean that your information is confidential when you go to H&R Block. H&R Block generally has EAs (I'm speaking about franchise locations that I know of, there may be some CPAs out there), which are not bound to the same rules as CPAs.

The standard confidentiality policy generally says something to the effect of "we won't give out your info, but we will if a court or IRS asks us to". That is a paraphrase off the top of my head since the last time I read one was a few months ago.

The reason for the confidentiality disclosure is because there is no such thing as accountant-client privilege like an attorney has. Most CPAs just use the generic template disclosure that was created by the AICPA. Therefore, my answer to your question is that your information is confidential as long as nobody asks for the information.