4 ms·
How does that work when you "win" but have actually lost? If I go into a casino, spend 20k, then win back 15k, have I actually lost more than the difference 5k
by jlgreco 14y ago
How does that work when you "win" but have actually lost? If I go into a casino, spend 20k, then win back 15k, have I actually lost more than the difference 5k because that 15k is taxed?
- hovenj 14y agoI don't know how the casino handle it in practice, but theoretically, if you can itemize, you'll get it back at the end of the year (up to the extend of your winnings). http://www.irs.gov/taxtopics/tc419.html http://www.irs.gov/taxtopics/tc419.html http://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Can-You-Claim-Gambling-Losses-on-Your-Taxes-/INF14370.html http://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Can-...
- deleted 14y ago[deleted]
- logn 14y agoFor amateurs, the IRS has a concept of gambling "sessions". You net your win/loss within a session. You report the total of all winning sessions as income, and itemize your losing sessions (which can't exceed wins). States and cities have varying laws. Basically most states with casinos allow you to do the same as on federal returns. Those without require you to report all wins as income and not deduct losses, effectively making it impossible to gamble with any regularity (since you could easily owe taxes on $200k of income, of which you only saw $10k... or worse, -$10k). Pros can simply net their wins/losses (while maintaining a record-keeping notebook). To qualify as a pro you have to derive almost all income from gambling. Gamblers get worried when people want to close tax loopholes (such as itemized deductions for certain things). They can come scarily close to losing their way of making a living.