Is paying a tout tax deductable?

[pharmorjac]

So we all know that your gambling winnings are deductable up to your gambling winnings.

What happens if you pay a tout for pics, are those fees tax deductable? Or are they not relevant (only winnings and losing are deductable)?

[betplom]

So we all know that your gambling winnings are deductable up to your gambling winnings.

Very optimistic, aren't we?

[MrX]

If you file as a professional gambler, than paying a tout would be an expense on your Schedule C. If not, then you're out of luck, it's not a gambling loss.

[TheOffshoreGambler]

You pay for a tout???

[poru]

If you file as a professional gambler, than paying a tout would be an expense on your Schedule C. If not, then you're out of luck, it's not a gambling loss.

I am not a tax expert but I think this is wrong. You can write off any business expenses and tout picks are no exception. If you're paying a fee per month or season, you're basically paying for a subscription service, which could be written off as "reference material."

[louis]

poru, if you do not file schedule C you can not deduct expenses for a tout, or any other expenses other than direct gambling losses. You can not file schedule C unless you are a professional gambler, according to the IRS's definition.

Professional gamblers can, but don't have to, file schedule C, get a bunch of deductions but have to pay self employment tax.

There is no question someone filing schedule C can deduct the cost of a tout, even if the tout turns out to be worthless. If you paid the money for it, it is deductable.

Touts are almost always a waste of money. You can get free advice on forums like this. The average poster of information here is probably more expert than the average tout.

[HedgeHog]

poru, if you do not file schedule C you can not deduct expenses for a tout, or any other expenses other than direct gambling losses. You can not file schedule C unless you are a professional gambler, according to the IRS's definition.

Professional gamblers can, but don't have to, file schedule C, get a bunch of deductions but have to pay self employment tax.

There is no question someone filing schedule C can deduct the cost of a tout, even if the tout turns out to be worthless. If you paid the money for it, it is deductable.

Touts are almost always a waste of money. You can get free advice on forums like this. The average poster of information here is probably more expert than the average tout.

I agree. If you're lucky enough to win in any given year (and dumb enough to report it) you can write off any legit expenses against it--and that does include touts you pay. If you lose and pay a tout (probably why you lost), then you're on your own--you can't declare the loss. Uncle Sam runs a great racket.

[louis]

If you win, you can only write off expenses if you are a professional, and you file schedule C. You can write off losses, regardless. However, you can not show a net loss from gambling on your taxes. Very few professionals are going to show a net loss for an entire year, unless they are not really professionals anyhow. This is not a big issue. Non pros were not able to deduct past the extent of their winnings anyhow.

[HedgeHog]

My problem is that even a pro can have a poor year, yet he can't carry the loss to next year as an offset. However, you can write off Stock Market Losses, another form of gambling, on Sched D up to 3k and carry the rest over--totally inconsistent.