What if I make 50k betting sports and claim it on my taxes but get audited? Online sports betting is illegal except for in Vegas, so how am I supposed to go about doing things?
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why the **** would you claim it.Comment -
No BS answers like this plz tyOriginally posted by krk1030Comment -
Have it documented (like screen shots of your balances or plays) and you're fine. IRS just wants its cut, and it's not illegal to be a winning sports bettor. You know it is taxed as unearned income, if you make a living sports betting it would probably be worthwhile to declare yourself a professional gambler so that you could take write-offs and have your winnings taxed as earned income--downside is that you then have to pay both ends of the social security tax.Comment -
Bookie is right, they just want their money. They (IRS) are tasked with collecting taxes, they aren't law enforcement officers that go around and try to solve crimes. Now I wouldn't rub illegal activity in their face, be on the phone trying to move 10 kilo's when you're in the middle of getting audited but their primary focus has always been on collecting whatever taxes are owed.Comment -
Online sportsbetting is NOT illegal. Its illegal for the banks to process out and or in currency used for gambling offshore.Comment -
this is what's so ridiculous about sports betting, no one even knows if it's illegal or not. i recall a story on here about a man who was arrested for declaring himself a professional sports bettor living outside of vegas on some official documents.Comment -
Many states that have casinos outlaw SportsGambling. Example, the Illinois "Riverboat gaming act" outlaws any wagering type that is not conducted on a structure that is not over a water source....ie online gamblingComment -
there's a spot on your 1040 for other income (i.e. gambling winnings). you would put your winnings there (NOT your net winnings), and you can then itemize deductions and include your gambling losses.
if you wanted to net your winnings, and you are devoting significant time to betting, you can declare it a business and net the winnings. and as someone else said, it also allows you to write off a whole bunch of expenses. where it hurts is the self-employment tax (social security & medicare).
there's a whole bunch of stuff written about this on the internet, i suggest googling and reading a bunch.Comment
