IRS - Claiming gambling profits

[JustWin]

For those that have offshore gambling books but fund from bank accounts on U.S. soil...Do you claim the money you make gambling, as you transfer the money into your bank account. What's the best practice here?

Thanks.

 

[JustWin]

anybody?

 

[brewers7]

Not a simple question to answer but here is the simplest answer coming from someone who has been doing this for 3 years "Professionally":

You are supposed to report how much you win and how much you lose...

 

[PercocetThreat]

What brewers said, that is what you are supposed to do. Sucks becuase you lose the standard deduction when you do that.

 

[JustWin]

well, if you gamble at an offshore yet bank domestically...How should one withdraw money?

Currently, I just withdraw from the book into my bank account electronically, thus an audit trail.

 

[Whoson1st]

What brewers said, that is what you are supposed to do. Sucks becuase you lose the standard deduction when you do that.

Could this cause you to pay more in taxes even if you lost money? For Example: Total winnings = 50,000. Total losses = 51,000. (You lost $1,000 net).

 

[blueedwards]

well, if you gamble at an offshore yet bank domestically...How should one withdraw money?

Currently, I just withdraw from the book into my bank account electronically, thus an audit trail.

get a neteller debit card.

 

[Whoson1st]

For Tax purposes : Are Gambling "winnings" and "receivings" considered one and the same?


Fishhead? Anyone?

 

[Whoson1st]

get a neteller debit card.

Still an audit trail. The IRS has their own investigators.

 

[PercocetThreat]

Could this cause you to pay more in taxes even if you lost money? For Example: Total winnings = 50,000. Total losses = 51,000. (You lost $1,000 net).

Yes, because your deduction would go from $5,000 (the standard) to $1,000. It would cost you the applicable tax rate on $4,000.

 

[Whoson1st]

Yes, because your deduction would go from $5,000 (the standard) to $1,000. It would cost you the applicable tax rate on $4,000.

Well at least you'd be able to sleep. Doesn't seem fair at all, but is better than worring if the IRS should they ask about that money from Neteller into your bank account.

 

[tomg27]

Gambling winnings per W2-G's accumulated for the year enter on 1040 under Mis Income. Gambling losses go on Schedule A under Misc Losses and can not exceed gambling winnings..i sign a lot of W2-G's as i play the horses and exceed the 300-1 limit mainly in the exotic bets (Pic 3's 4's and 6's..also trifectas)

Regards
tomg27

 

[wilheim]

Tomg27, welcome to The Rx. I hope you enjoy the site and start to post regurlarly.


Best of luck, wilheim..

 

[PercocetThreat]

Gambling winnings per W2-G's accumulated for the year enter on 1040 under Mis Income. Gambling losses go on Schedule A under Misc Losses and can not exceed gambling winnings..i sign a lot of W2-G's as i play the horses and exceed the 300-1 limit mainly in the exotic bets (Pic 3's 4's and 6's..also trifectas)

Regards
tomg27

So what you are saying is that, under no circumstance, can you actually deduct net losses?? You can deduct losses, but they cannot be in excess of the winnings you claim??

I think if the IRS weren't so unfair about it more people would be inclined to report their action. Eh, maybe not.