anywone know how to handle something like this on TAXES

[trytrytry]

these are hypothetical numbers


10 years ago deposited $1000 into an off shore place

cashed some profits out 5 years ago $2000 leaving also a healty balance for $2000 in place. did not claim any profit or losses on that.

over the years healty balance grew to a big number $10000.

LAst year the sportbook went out of business with my cash, I got nothing

this year I have taken out much funds form other sportsbooks so I have a gambling win that I am claiming on my forms, I am trying to deduct legitamate gambling losses to offset.

Can I use any of the $10000 (that was a gambling related loss) as a gambling loss on my forms? how much? recall I won that much in profit but never paid taxes on those profits as I never withdrew it.

any insights?

 

[SHACK]

I pay taxes on my profits each year. I define profits as money sent to the book subtracted from what I have received back.
EX: Sent 10k, received 12k. pay taxes on the 2k profit. of course you can deduct things you use each year to help with the gambling: ie, directv, newspapers, cell phone, etc.

 

[PercocetThreat]

Here's the problem: You pulled out $2K in profits years back. Technically, you were supposed to report them in the year you took them out. IRS would probably have a problem with that.

I'd let it go if I were you, no need to open up a can of worms by trying to claim losses when the IRS can hit you for not claiming the profits from years back.

Lastly, since you never claimed any profits off of that balance you built up in the defunct book; I would assume you cannot now claim them as losses.

I would definiately contact an accountant or some tax professional, good luck.