Report winnings to the IRS?

[moo321]

That's only because you would receive a W-2G for your $15,000 jackpot and you legally can't fail to report that.

If you put a penny into a slot machine and win $1 on one trip and then lose four quarters on your next trip, the proper thing to do is to report winnings of $1 counteracted with a loss of $1. But it's fine (IMO) to just put $0 for each.

In the space between "I sunk my loose change into a slot machine" and "I won enough to generate a W-2G" is the "it's up to your conscience" zone.

I mean, if that's your opinion, then do it. I'm just not sure what the "official" opinion is. In fact, I'm convinced that there is no right answer, because our tax code is a 10,000 page tome of useless, contradictory statutes that no one has even read.

 

[shadroch]

I mean, if that's your opinion, then do it. I'm just not sure what the "official" opinion is. In fact, I'm convinced that there is no right answer, because our tax code is a 10,000 page tome of useless, contradictory statutes that no one has even read.

I suppose you can convince yourself of anything, or come up with an excuse to just about anything, but it doesn't change the fact that the IRS rules are straight forward and black and white.
As far as your last statement, it's simply wrong. I know several tax accountants who pretty much have the code memorized.

 

[dumbWinner]

Ok , this thread got me worrying now. This is my second year into blackjack i think. I have made significant withdrawls and even significant deposits into my bank accounts over time. One thing i am sure about is that the casino guys dont have my SSN or anything. Ruling out that the casino will report to the IRS , i did keep track of my winnings and asked one of the casino managers about reporting to IRS. He said , if only you cash out a million $$s in one day , we will have to take your SSN and report it to the IRS. If not , you dont have to worry about it. I didnt care so much because of obvious reason that a million $$$ is for me. Do the casinos usually take your SSN for the club memberships and etc ? Whenever i cashed out , i never saw anyone filling any paper work or anything. So i am assuming the casino guys are cool with it. :cool2:. The funny part is looking at the face of the bank teller when i am depositing a big chunk of cash on consecutive days. One day hes gonna ask me if i am printing off some bills each day.:grin:

 

[moo321]

I suppose you can convince yourself of anything, or come up with an excuse to just about anything, but it doesn't change the fact that the IRS rules are straight forward and black and white.
As far as your last statement, it's simply wrong. I know several tax accountants who pretty much have the code memorized.

No, I'm sorry, but the IRS rules are not straight forward. That's why I've gotten multiple different opinions on the subject from professionals. You seem to have contradictory opinions on the subject. If a player hits a massive jackpot, which is reported to the IRS, but loses more than that, should they only report net? Or in this case, violate your earlier advice and report the big win and write off the losses?

Also, how the **** can you have a 10,000 page document memorized? I don't even know anyone who's memorized the Bible, and that's only 2,000 pages and much more memorize-able.

 

[moo321]

Ok , this thread got me worrying now. This is my second year into blackjack i think. I have made significant withdrawls and even significant deposits into my bank accounts over time. One thing i am sure about is that the casino guys dont have my SSN or anything. Ruling out that the casino will report to the IRS , i did keep track of my winnings and asked one of the casino managers about reporting to IRS. He said , if only you cash out a million $$s in one day , we will have to take your SSN and report it to the IRS. If not , you dont have to worry about it. I didnt care so much because of obvious reason that a million $$$ is for me. Do the casinos usually take your SSN for the club memberships and etc ? Whenever i cashed out , i never saw anyone filling any paper work or anything. So i am assuming the casino guys are cool with it. :cool2:. The funny part is looking at the face of the bank teller when i am depositing a big chunk of cash on consecutive days. One day hes gonna ask me if i am printing off some bills each day.:grin:

If you're winning decent money, you should be reporting.

 

[dumbWinner]

Play Nice InPlay!....or ZG will be on your case.

Don't worry about it DW.. If they give you a tax form, then you can worry about it. My bank asks me about cash deposits from time to time... I tell them I'm a drug dealer. Nowadays though, I usually just keep my bank roll under the mattress... (so to speak). I can make a better return doing other things than the bank will give.

Mattress .... yep , i just put some at home , enough for about 2 losing sessions. I put in the bank just to , actually no reason apart from being scared of losing my mind if losing too much at the casino. Not that they earn or something sitting at the bank. If we care about those earnings , we wouldnt be here talking about 1% edges over the casinos.

 

[Sonny]

It looks like InPlay needs to calm down and relax with another vacation. We'll try 3 weeks this time.

-Sonny-

 

[daddybo]

A Link to IRS site

The "Official" Word...

http://www.irs.gov/taxtopics/tc419.html

 

[Canceler]

The "Official" Word...

http://www.irs.gov/taxtopics/tc419.html

Gambling winnings are fully taxable and must be reported on your tax return. …
You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction…

Apparently netting is not allowed.

It is important to keep an accurate diary or similar record of your gambling winnings and losses.

I have all the results of my gambling activities in a spreadsheet. I wonder if that’s good enough. It’s 100% accurate. But it could be a lie; it’s just a spreadsheet after all.

The next sentence is the one that makes me not blame people who choose not to report their winnings…

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

If I lose $100 playing poker tonight there will be absolutely no documentation that that happened. It will be a real loss, and will show on my spreadsheet, but I wouldn’t be able to deduct it without some documentation. That’s the way it sounds, anyway.

 

[daddybo]

the truth

InPlay (r.i.p.) actually said it correctly, if not tactfully. Winnings from table games are usually not reported. You really would be going above and beyond the call of duty to report these winning when they aren't documented.

It's really a conscience thing. (I believe somebody said that earlier)

 

[shadroch]

You never know when you will be subject to an IRS audit. Suppose you get suddenly cast into the public spotlite, ala Joe the pseudo- plumber. It's well known you enjoy playing roulette and it's mentioned on various nation wide media outlets. Yet when the IRS looks at you, you've never claimed a dime of winnings. A quick search of your credit cards shows you have flown to Vegas several times in the last few years, and have only incidental room charges, indicating you recieved comp rooms.
Someone has a lot of splaining to do.

 

[Deleted member 3798]

Rewards: up to 30% of the taxcheat's penalties & backtaxes

Do you report your winnings to the IRS? Please share your thoughts as I am unsure whether or not this is necessary.

View Poll Results: Do you report winnings to the IRS?

Absolutely. 9 33.33%
Absolutely NOT. 13 48.15%
Yes, if they were "really high" 4 14.81%
No, if they were not "really high" 1 3.70%

Wow...48% APs have cheated on their taxes! PM me if you know of a taxcheat. You will be rewarded up to thirty percents of the taxcheat's penalties & backtaxes racked in by IRS & State Tax Authorities.

 

[shadroch]

How do you think that 48% stacks up against the general public?

 

[daddybo]

Argh!

Wow...48% APs have cheated on their taxes! PM me if you know of a taxcheat. You will be rewarded up to thirty percents of the taxcheat's penalties & backtaxes racked in by IRS & State Tax Authorities.

You better get a bigger Smith!.. and more speed loaders! :eyepatch:

 

[callipygian]

I have all the results of my gambling activities in a spreadsheet. I wonder if that’s good enough. It’s 100% accurate. But it could be a lie; it’s just a spreadsheet after all ... If I lose $100 playing poker tonight there will be absolutely no documentation that that happened. It will be a real loss, and will show on my spreadsheet, but I wouldn’t be able to deduct it without some documentation. That’s the way it sounds, anyway.

You're right in that, should the IRS come down hard on you, your ass is toast. However, they're not going to do it unless they believe you are willfully and intentionally trying to evade taxes.

The question isn't (or shouldn't be) whether your spreadsheet will protect you in a court of law when you're on trial for tax evasion. It's whether your spreadsheet is better than nothing, because "nothing" is the default alternative here. Is your spreadsheet good enough to show good faith during an audit so that you never end up in court to begin with?