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> Gambling income is in a completely different category from a prize you won for free. The only difference is that as a professional, you're filing your taxes
by ben509 8y ago
> Gambling income is in a completely different category from a prize you won for free.
The only difference is that as a professional, you're filing your taxes as a business. It's still "income"[1], it's just the entity filing is a business rather than a specific person.
Regardless, a prize you win is not taxed as a sale.
> There's no reason they have to be taxed the same.
To the extent they're treated inconsistently, people will use the discrepancy to game the system. Politicians do that deliberately, of course, since it's an opportunity for graft.
[1]: https://www.investopedia.com/terms/i/income.asp https://www.investopedia.com/terms/i/income.asp
- Dylan16807 8y ago> The only difference is that as a professional, you're filing your taxes as a business. In gambling, you're putting money into the system, possibly applying skill, and getting money back out. With free prizes, you're just being given things with nothing in return. That's a big difference. And not one that you can effectively game. It's very clear whether you're inputting money or not.