1. #71
    Auto Donk
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    this will be JJ next tax season:

    Professional Gambler Bets Wrong In Tax Court - Takeout Expenses Are Gambling Losses, Not Business Expenses

    When the calendar turns to mid-March and tax season makes the leap from annoying to soul-crushing, I spend more time than I should daydreaming about goin' all Walter White and breaking bad, only instead of cooking meth, I’d use my well-honed number-crunching skills to become an underground bookie.
    Oh, what a life it would be. Instead of spending March Madness in a tiny office cranking out tax returns, I’d spend it in a giant war room complete with wall-to-wall flat screens, building my riches on the failed dreams of student athletes. I’d work the phone better than Gordon Gecko, avoiding detection by using subversive colloquialisms like “unit” and “juice.” I’d threaten to break thumbs with impunity. And I’d make money. Lots and lots of money. Because the house never loses.
    The house doesn’t lose because it is (generally) indifferent to who the bettors favor. Not to get into Gambling 101, but if you bet $100 on the Seahawks + 2 ½ in the Super Bowl, you won $100, But if you bet $100 on the Broncos to cover the 2 ½ points (sucker), you lost $110. The $10 the loser pays over and above the wagered amount is the “vig.”
    Thanks to the vig, bookies generally don’t care who people are betting on, as long as the bets are fairly even on both sides. And of course, bookies have the advantage of being able to move the line to make sure this happens.


    When it comes to horse racing -- which in my bookie fantasy world, I will occasionally dabble in but not invest heavily – the house has an added level of protection in the form of “parimutuel wagering.” It works like so:

    The entire amount wagered on a particular race is referred to as the betting pool or “handle.” The pool can then be managed to ensure that the track receives a share of the betting pool regardless of the winning horse. This share of the betting pool that the track keeps for itself is often referred to as the “takeout,” and the percentage is driven by state law, but generally ranges from 15% to 25%.


    he takeout is then used to defray the track’s expenses, including purse money for the winning horses, taxes, licenses, and fees. The takeout can also be used, if needed, to cover any shortfall in the amount necessary to pay off winning bettors. To the extent any excess takeout remains after covering these two classes of obligations, the track has profit.
    Once the betting pool has been reduced by the takeout, the balance is generally used to pay off any winning wagers, with the excess, once again, representing profits. Great business model, isn’t it?
    Yesterday, an enterprising CPA with a raging gambling habit threatened to strike a blow for bettors everywhere when he took on the IRS in the Tax Court and argued that the portion of his wagers attributable to the “takeout” were deductible without limitation. But before we can understand the significance of the case, we need to understand some basics about the taxation of gambling.
    Treatment of Gambling Expenses, In General
    Section 165(d) provides that “losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.” Generally, any winnings are reported on page 1 of the Form 1040, while the losses (but only to the extent of winnings) must be claimed as itemized deductions. Thus, if a bettor is one of the 66% of Americans who don’t itemize their deductions, they would effectively be whipsawed – they would be forced to recognize the gambling income, but would receive no benefit from the losses.
    Section 162, however, generally allows a deduction for “all the ordinary and necessary expenses paid or incurred during the tax year in carrying on any trade or business.”
    Putting these two provisions together, many bettors have taken the position that if their gambling activities are so frequent, continuous and substantial as to rise to the level of an unhealthy addiction a Section 162 trade or business, then gambling losses are deductible as Section 162 business expenses, and are not subject to the loss limitations imposed by Section 165(d). In their view, if the gambling activity constitutes a business, because the losses (along with the gains) should be reported on Schedule C, rather than itemized deductions, the losses should be permitted in full.
    The courts have repeatedly shot this theory down, holding that even a professional gambler who properly reports his activity on Schedule C may only deduct losses to the extent of gains.
    In a very important 2011 decision out of the Tax Court, however, the court held that while gambling losses are limited to the extent of gambling winnings, any non-loss expenses of a professional gambler engaged in a trade or business – items like automobile expenses, travel, subscriptions and handicapping data – are not subject to the Section 165(d) limitation. Thus, a professional gambler could reduce his winnings to zero by his losses, and then further deduct any non-loss business expenses, generating a net loss from the activity. (See Mayo v. Commissioner, 136 T.C. 81 (2011).)

    And that brings us back to our gambling CPA. In Lakhani v. Commissioner, 142 T.C. 8 (2014), settled yesterday, an accountant/prolific track bettor made the compelling argument that his portion of the track’s “takeout expenses” represented non-loss business expenses rather than gambling losses, and were thus deductible without limitation. The taxpayer posited that by extracting takeout from the taxpayer’s wagers and using those funds to pay the track’s operating expenses, the track was acting in the capacity of a fiduciary. The taxpayer further likened the process to that of an employer who collects payroll taxes from his employees and remits them to the IRS and state agencies. Stated in another manner, the taxpayer argued thathe was paying the operating expenses of the track, with the track acting as a conduit by collecting the takeout and using the funds.
    Nomination(s):
    This post was nominated 1 time . To view the nominated thread please click here. People who nominated: Jayvegas420

  2. #72
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    JJ even looks like this prick from jersey:




    JJ a wannabe Krackomberger..... even trying to steal his look and his "jersey tough guy" act.......

    no one thinks you're all that tough when you go to prove a point by grabbin your junk, and this scenario unfolds:




    JJ, you won't need a license for that little gun..... it's not a weapon of any type at all......

  3. #73
    jjgold
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    Automan how do you know I'm not 9 inches?


    Krackman a legend

  4. #74
    Auto Donk
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    Quote Originally Posted by jjgold View Post
    Automan how do you know I'm not 9 inches?

    well, for starters, I'm not blind

    and second, you're not f'n david blaine.... only he could turn something nine inches into a half-inch

  5. #75
    clockwise1965
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    Can you write off hookers?

  6. #76
    Sam Odom
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    Quote Originally Posted by clockwise1965 View Post

    Can you write off hookers twinks?

    dont think so

  7. #77
    franklee168
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    Coach, how do you come up with this stuff?

  8. #78
    Snowball
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    I see Corbin Air, Inc. and a Sethlin Hookstra who runs a rehab.

    http://nvsos.gov/sosentitysearch/corpsearch.aspx
    Last edited by Snowball; 12-23-16 at 10:24 AM.

  9. #79
    jjgold
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    Quote Originally Posted by clockwise1965 View Post
    Can you write off hookers?

    no cuz

  10. #80
    Auto Donk
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    Quote Originally Posted by jjgold View Post
    no cuz
    yes, you can, if you buy one for a client and yourself and use a creative application of the "business entertainment" tax deduction on your Schedule C

  11. #81
    JMobile
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    JJ, I know a good dentist to fix your teeth, pal.

  12. #82
    Sam Odom
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    Quote Originally Posted by JMobile View Post
    JJ, I know a good dentist to fix your teeth, pal.


  13. #83
    jjgold
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    Mobile back off

    Sweating games

  14. #84
    grease lightnin
    &
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    Quote Originally Posted by stealthyburrito View Post
    Guy wears his glasses on his head while wearing his sunglasses like a turd
    Guy I work with does this. Major douche

  15. #85
    JMobile
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    Quote Originally Posted by jjgold View Post
    Mobile back off

    Sweating games
    Dentist can hook you up with a million dollar smile. Call him.

  16. #86
    jjgold
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    Lol

    Call
    Me
    Mobile

  17. #87
    bubbabubba
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    You're Mobile

  18. #88
    Sam Odom
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    JJ... your old buddy Sammy found you the perfect Woman






    SACRAMENTO, Calif. (AP) -- A 57-year-old convicted killer serving a life sentence in California became the first U.S. inmate to receive state-funded sex-reassignment surgery, the prisoner's attorneys confirmed Friday to The Associated Press.

    California prison officials agreed in August 2015 to pay for the surgery for Shiloh Heavenly Quine, who was convicted of first-degree murder, kidnapping and robbery for ransom and has no possibility of parole.
    Points Awarded:

    Auto Donk gave Sam Odom 1 Betpoint(s) for this post.


  19. #89
    ABEHONEST
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    Quote Originally Posted by jjgold View Post
    jizay no I cannot

    Licensed in Ocala
    Okala, has a floating rumor going around recently, that someone spotted a 22 foot Nile Crocodile. The meanest, largest Croc on earth. They can snap a human into if they grab you across the middle.
    Watch your back and your crack, JJ.


  20. #90
    jjgold
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    Lots of gators here

    Stay away from water

  21. #91
    thellama
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    jj easy on the meals, can only write off 50%. Trust me, bummed me out as well after my first year of business. Mr Chow not cheap even at half off.

    Also, if you want to cash in your chips and sell your successful gambling firm, need to be careful with the bullshit expenses. Will devalue what you've worked hard to build. Just looking out for you, successful people need to stick together.

  22. #92
    INVEGA MAN
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    That car is DIRTY. PLEASE CLEAN!!!

  23. #93
    jjgold
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    Quote Originally Posted by thellama View Post
    jj easy on the meals, can only write off 50%. Trust me, bummed me out as well after my first year of business. Mr Chow not cheap even at half off.

    Also, if you want to cash in your chips and sell your successful gambling firm, need to be careful with the bullshit expenses. Will devalue what you've worked hard to build. Just looking out for you, successful people need to stick together.

    thanks guy

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