What's the point of paying taxes on your winnings?
What's the point of paying taxes on your winnings?
I see what you mean. You can't "deduct" your losses, but you can reduce your winnings by your losses for a given session. But even if you are down for teh year, you still owe if you won in a given session. That I do not know.
Poopoo, the point is not going to jail or being monetarily penalized for tax evasion. For svino, it is probably because he is communist.
2012: +19.33
2012 Parlay project: +16.5u
I believe you can deduct gambling losses (up to the amount of gambling income) but of course: 1) You have to be already itemizing deductions for it to be worth it, and 2) Presumably, you have to provide documentation of said losses and I'm not sure what would be adequate here.
Alternatively, one can file as a "professional gambler" and total income and expenses as a business would, but again I assume there's a lot of documentation required here.
That's a distinctly Svino kind of suggestion.
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You're right. I always thought you could not deduct losses from subsequent sessions. I don't see how they could possibly track that, I looked at the IRS guidelines, and a record is all they require. I am pretty sure I can fabricate a record of losing, the same way I fabricate my business mileage log book at the end of the year.
So with that, it seems pretty clear that the total winnings are based on the year. So I don't see any way to claim it other than miscellaneous income (or as you mentioned, business income). The benefit to claiming it as a business is that you can deduct your expenses from operating your business (internet, pay out fees, plane tickets to vegas).
2012: +19.33
2012 Parlay project: +16.5u
What is the best way to conceal the income?
I saw a good movie last night, Margin call
http://www.imdb.com/title/tt1615147/
Anyone else see this?
They have me on file @ the M. And they do seem to somewhat track me(closer than they did @ the Venetian). But I keep COPIES of all my winning tickets and keep the actual stubs of all my losing bets. If the IRS does ding me( I seriously doubt it), I will have all my losing tickets, and they better hope they have ALL my winning tickets. Because the only tickets I will provide them are the losers.
hmmmm. I deposited via cc. So i'll just ask them next time i withdraw.
I made like $160 in 2010 and $250 in 2011. And I've never made a withdrawal in over 2 years. So I'm not worried about taxes, but if I was bringing in thousands a year then I would look into it.
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