Calling any accountant,am I crazy for coming up with this tax free gambling profit?

[BrentCrude]

So many people win jackpots at Indian casinos and the casino makes you fill out the IRS tax forms so you have to pay income tax on your winnings.

Lets say that you win 7 grand.You take the 7 grand and buy a piece of worthless native american art from a kid on the Indian reservation who has no income where he will fall under the income tax threshold of NOT having to pay any taxes on the 7 grand.Of course you aren't really giving him the 7k,you and him are friends or something and you are in cahoots together.You give him $100 for his effort for him saying you paid 7k for his art work.

You then either take the 7k piece of worthless art and sell it for $20 on E-bay or better yet,you donate it to an art museum and tell the IRS it was a loss or charitable donation.How much of the original 7K could you get out of paying taxes on?

Am I a looney tune for hatching this scheme where it would never work?????Are there any accountants here familiar with this stuff?

[MrX]

It'd be easier to create a fake log of gambling losses to offset the win.

[Francis Sollozzo]

pick up tickets on the floor in the racebook

[louisvillekid]

pick up tickets on the floor in the racebook

there you go, and everytime you go to a convenient store grab all the scratch-offs that people throw in the trash right by the door, i know the one by my house people scratch them off and then toss them in a little can right by the counter, no real garbage in there, just tickets and receipts.

i wish i could get to a point where i was worried about these kind of situations , but i don't make enough to worry about it.

[THE HITMAN]

You would be better off "stooping" at the track, as suggested.
Be careful to try & get all your tickets so they "make sense" to a possible auditor. Don't get tickets from the first floor and mix them with tickets for the fourth floor, let's say, that are for the same race. If they are time stamped, careful not to get tix from different places bearing a reasonably close time stamp, etc, etc.
Your first idea, IMO, doesn't hold . Income of $7000 is from gambling, purchase of art is an investment, subject to capital gains taxes, a different ball game. You could stretch out the art loss to wash out in the very end, I suppose, bu they are seperate entities on your tax form.

[bbyhill]

pick up tickets on the floor in the racebook

everytime I go to the track I save all the tickets and try to get enough to offset.

[topgame85]

That track Idea works but keep in mind you can only use the losing tickets up to the amount of winnings and you can only use them if you write off over the $5,250 which is the standard deductions in other words you would have to have 5,250 in gambling winnings or combination of gambling winnings and other write offs just to break even

[DukeJohn]

Well you could always just have the kid invoice you for $7K or $10K, whatever, call it a consulting fee as long as your gambling venture is a business for you. I.E. you are a professional. Just fill out a 1099 for him and you are set. Of course you would need to claim the money once he gave it back to you, unless you just forgot to fill out that part of the paperwork...