What is the loophole to deduct gambling losses as tax write offs?
-
-
Hard to deduct losses, anyone who's paying taxes on winning isn't trying hard enough though. I would always suggest reporting winnings and at least that much in losses so you aren't paying. Plenty of ways to prove "losses"Comment -
It's called the fraudulent/frivolous tax return loopholeComment -
do you file a Sch C?Comment -
You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A, as a miscellaneous itemized deduction that is not subject to the 2% limit.
It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529,Miscellaneous Deductions, for more information.Comment -