Tax ? please help

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I dont see how winnings should have to be claimed until sent back home. That is how I have handled it and do not think there is anything unetchical about it. When books like pan am go tits up it forces me to do it that way. Not a win until it is paid IMO.
 

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dammmmmmm and i won 35k on my superbowl box last year


filling out the paperwork right now so uncle sam can have his piece
 

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royalfan said:
I dont see how winnings should have to be claimed until sent back home. That is how I have handled it and do not think there is anything unetchical about it. When books like pan am go tits up it forces me to do it that way. Not a win until it is paid IMO.
Agreed

However, you should keep an accurate diary(or reasonably accurate) diary of your gambling wins and losses.

I say reasonably because maybe to simplify things, if you played 19 games this evening and netted say $300, in the perfect IRS world you should list EVERY game and have the ending $300 net.

However I see no problem with maybe listing two games as $300 winners and one loser at $300 to derive at your NET of $300.

If you keep a diary daily, dont see anyway how the IRS would know if you bet 3 or 19 games since they are not going to call upon your sportsbook and ask for your records in Costa Rica.

The important thing is you reported your NET $300 for the day........that is much more important.
 

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fish, how will the irs know that you won $300 in one day? like you say, they will not check with a sportsbook in cr...
 

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blue edwards said:
fish, how will the irs know that you won $300 in one day? like you say, they will not check with a sportsbook in cr...
Their only course of action would be the gamblers diary.

PLEASE ACCOUNT FOR ALL THE MONEY THAT HITS YOUR BANK ACCOUNT.

AND AGAIN, ONLY YOU AND YOUR TAX ADVISOR CAN PLAN THE BEST STRATEGY FOR YOU.

Take all you can learn from this forum and others and sit down with your accountant and plan your strategy.

EACH AND EVERY INDIVIDUAL IS DIFFERENT..........AS EVERYBODYS TAX SITUATION IS DIFFERENT.
 

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fish, you ever been audited? i assume they pour through your bank statements and say "what is this credit"?
 

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go to your local casino and withdraw money from their atm, use it as proof for losses, The IRS knows that millions of people gamble and out of that may be %10 keep track of all losses and wins and report it as such, you think every body that goes to the casino keeps track of every penny lost and won and then reports it, hell no, just be able to account for what is coming into your bank account. By the way the money you have in sports books is not money won, it's only money won when it is cashed out, so if you won $50,000 at a book but your money is till in the book that is not money won, it's only considered winnings if you cash it out.
 

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Let me give you guys some advice, do not tell the IRS or any Government agency that you had an income from betting sports online, online sports betting is illegal in the USA and any income thought to have come from an illegal activity, by law, will become the government's money, say you played poker or bet horses to play it safe. DEfinitley don't keep track of your internet sports wagers as proof for IRS, the second you give them that you are admitting to having made money from an illegal activity, and then you are screwed.
 

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i have been operating on a "don't ask, don't tell" basis for years. i am not a big time player so, i doubt that i will get pinched.
 

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Correct Fathead. Gambling winnings are not directly offset by gambling losses. You can lose money gambling and STILL have tax liability. Its a quirk of the tax code. And a crappy one at that.
 

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642411.jpg


For a mere $12.95, you make want to pick-up a copy of this online through the Gamblers Bookshops website.

Here is the link.............

http://www.gamblersbook.com/weblink.cby/detail/642411.html
 

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Correct Fathead. Gambling winnings are not directly offset by gambling losses. You can lose money gambling and STILL have tax liability. Its a quirk of the tax code. And a crappy one at that.
Mega,

Thats not entirely true, you can report your gambling winnings and losses on schedule C of your 1040 if you can justify that you are a professional gambler.
If this is the case, then your net winnings or losses are reported on your return.
 

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It would be difficult to prove you are a professional if you lose money for the year. Most recreational gamblers would have difficulty making that argument too. After all there is a line on the form for other income that specifies to enter gambling income there. Thats the letter of the law. Most IRS auditors strictly follow the letter of the law. You will have to have a pretty convincing case that you are a pro if you do get audited. Even then I'd wager the auditor will asses you and you would have to appeal to win. It just depends on how bad the IRS wants you.
 

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Again, there is no real reason for 99% of the posters here to declare themselves as PROFESSIONAL, even if they make money year in and year out.

1. You will be paying self-employment/social security tax.

2. You will increase your chance of an audit 20 fold.

3. Yes, you can deduct things such as office space, travel, supplies, etc.,etc.......but there are other ways to do this without declaring yourself a professional (ways that are way to complicated and personal to discuss in a public forum).

Again, a semi-detailed diary of your gambling ventures is the best route for most of you here................YOU DO NOT NEED RECIEPTS, LOST TICKETS, ETC, to prove your losses............a semi-detailed diary is all you need for the IRS.

Include such things as......date, type of bet, casino/sportsbook, wager, won or lost, etc., etc.

At the end of the year, add up all your WINS in the WIN column and report on line 21.............add up all your LOSES and deduct them on schedule A...............thus you have your NET win reported.

For example, if you netted say $70,000 for the year, you may have something like $300,000 in WINS on line 21 and $230,000 in deductible gambling losses on schedule A.

This is all very simple really.

AGAIN, DISCUSS THIS WITH A GOOD TAX ADVISOR. ONLY YOU AND HIM ARE RESPONSIBLE FOR YOUR ACTIONS IN THE LONG RUN...............AND MAINLY YOU.

EVERYBODYS TAX SITUATION IS DIFFERENT and may require them to do something different.

However, for the majority of posters that consistantly win here, the above way which I stated will work very well for them.
 

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