[twelvejewelz]

I was just googling things and came across this article. It dosnt matter if your doing it legally or illegally apparently. I found this interesting.I own a business and like to write things off as much as i can lol. I havnt had a losing year in the past 12 years or so and i bet alot of $$ and obviously dont claim the winnings but if i ever lose big for the year i will look into this further lol. Is this common knowledge because i have never thought about it? Take a look:

"Losses as the result of gambling or wagering are generally deductible because gambling is an activity that you do to produce income. The legality or illegality of the gambling doesn't impact the deductibility of your wagering losses."

Tax Deduction for Gambling or Wagering Losses



Lawyers.com^sm

Millions of Americans gamble every day and in all sorts of ways, such as playing games of chance at casinos, placing wagers on horse and dog races, buying lottery and raffle tickets, just to name a few. Sometimes you win, and sometimes you lose, and there are tax consequences for both.
When you win, you have income that you have to report on your tax returns. Of course, more income generally means more income taxes you'll have to pay for the year. However, if you lose, you can take a tax deduction, which can help offset some of the additional taxes you owe on the winnings. There are restrictions on the deduction that you need to know about, though, such as:

• The amount you can deduct is limited
• You have to be able to prove the amount of your deduction

Losses and Taxes in General

Under the federal tax code, you can generally take a tax deduction for losses you have as result of, among other things:

• Your trade or business
• Any non-business activity you undertake "for profit," that is, to make money or produce income

Losses as the result of gambling or wagering are generally deductible because gambling is an activity that you do to produce income. The legality or illegality of the gambling doesn't impact the deductibility of your wagering losses.


Deduction is Limited

The tax code specifically and very clearly limits the amount of gambling losses you can deduct. You can take a deduction up to the amount of your gambling gains. This way, you're taxed on only your net income from gambling for the year. For example, during 2009 you lost $10,000 and you won $8,000 during various trips to a casino. You can deduct $8,000 of your losses -the amount up to your gain.
What about the remaining $2,000 of unclaimed losses? It simply disappears. You can't use it for anything. You can't use it to lower other kinds of income, like your salary and wages, and you can't use it to offset your any gambling gains you may have in 2010, which is called "carrying over" or "carrying forward."
Reporting Requirements

You have to report all of your gambling winnings as income for the year on your Form 1040 tax return on the line for "other income." You can't subtract your losses from your winnings and then report the difference.
You take the deduction for your losses (up to the amount you've won) by taking an itemized deduction on Schedule A. You use the line for "other miscellaneous deductions." You can't deduct any of your gambling losses if you don't itemize your deductions. In other words, if you take the standard deduction, you can't deduct your gambling losses.
Are You a Pro?

Even if you're in the trade or business of gambling - a professional gambler - and you make all of your money from gambling, the rules are pretty much the same. You can only take a deduction for your losses up to the amount of your gains. You claim your losses as a "business expenses" and winnings as "business income" on Schedule C. Your losses aren't treated the same as deductions for "business losses" other trades and businesses may take on Schedule C, though.
For example, in 2009 a small business that makes and sells widgets had gross income of $85,000 and $100,000 in costs and expenses. On its tax return, the business reports a $15,000 loss, which reduces its tax bill significantly. As a professional gambler who won $85,000 and lost $100,000, you can't actually take a deduction for the "extra" $15,000 loss. Like an amateur or casual gambler, you can only deduct enough to offset your $85,000 gain.


Records You Need to Keep

Because you have to report all of your gains and losses, and because the deduction on losses is directly related to you winnings, you need to keep detailed records of your gambling activities. It's important that your records show your losses and winnings separately. It's a good idea to keep a diary or log book that tracks the:

• Date and type of gambling activity or wager you placed
• Name and address of the place you gambled
• Names of other persons that were with you while you gambled
• Amount you won or lost

In addition, you should also keep other documentation that shows your winnings and losses, such as :

• Form W-2G, which is given when gambling winnings exceed certain dollar amounts for various types of games and wagering, or Form 5754, which you get when there's more than one person sharing the winnings, such as a group of friends sharing a lottery ticket
• Wagering tickets or slips
• Checks and bank statements
• Statements showing your winnings or receipts showing your payments that were issued by the gambling establishment

Questions for Your Attorney

• I thought I had to report my lottery winnings only if I won more than $500?
• My tax software didn't ask me about gambling losses when I completed my 2008 return. Can I file an amended return?
• I didn't keep most of the slips I got from the casino, so I can't make calculate exactly how much I won or lost, but I can probably come up with an decent estimate. Should I guess, or only report the amount I can prove?

[Glitch]

interesting.

[wantitall4moi]

nothing new here.

They just want to make sure guys cant claim more than they made. So it is basically a break even at best for the gambler. And if theyre really honest they claim a profit and thus have to pay something.

[Thunder Gulch]

You can't write off against ordinary income and if you aren't reporting your winnings, it does you no good.

Whenever I have to sign at the track, I hang on to dead tickets and offset the gain that has to be reported.