There’s a lot of people barely clearing $100/week prior to gambling, and then lose $20/night on sports gambling apps.
BBB is going to have a huge impact on sports gambling
- Thread starter 615dawg
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Those bulk W-2G situations are a pain in the rear to input into a tax return. We had a guy with over 300 of them once.
Just lump them per casino. They do not have to be inputted individually.
Is it any better that you sit down and pull out a ledger with each hand you play, write down the wins in one column then the losses in another, then add up your losses, multiply the number by 0.9, and take that final output to make sure your tax reporting is accurate?
To be clear, I wasn’t talking about micromanaging at that level. More along the lines of just what happens when you walk in and walk out of a casino….in your example. If I buy in with $1000 and I cash out with $1500, I get taxed on $500. Doesn’t matter how you get there. Gambling is entertainment….or at least it should be. Fostering a system where its anything more than that and incentivizes people to do it more often is going to create issues with people struggling on the addiction side of things. If you’re fortunate enough to win, pay whatever the legally required tax is. You lose, too bad. That’s the cost of doing business.
For reporting purposes, I think a sensible approach is that you get a consolidated statement each year from whichever and however many private entities you use as your “platform”, and your wins / losses get combined within that entity, however many bets you make. So, you can offset your taxable income with your losses within one entity, but not across the board to multiple others. Of course that will never happen, particularly with casinos, as they have always been set up on a cash based model where the transactions remain as untraceable as possible. Everyone gets their cut that way…..casino controls the intake manually, distribution of winnings have paperwork to cover their losses for their tax liability, they charge exorbitant fees to 3rd party vendors using ATM’s on their floor, and those 3rd party vendors charge even more exorbitant withdrawal fees to use those ATM’s. And the consumers get to potentially rake in tons of untraceable income.
Can’t make that type of system happen? Then simply save everybody the time and headache of even having gambling profits as taxable income (or at least below a certain income threshold), because it’s about as unenforceable as it possibly could be in the current configuration.
Based on my inability to follow your math, one of us definitely doesn't need to gamble.
Right except my guy went all over the world gambling at different places lol. Not 300 different places but at least 15 or 20. Still a hassle.
Well, quite obviously we're gonna need some details. There's got to be some good stories to go along with this.
I don’t think you can write off a net gambling loss
like you can’t say you are down $50,000 for the year and get a $50,000 income deduction
Correct.
Now, if you won $30,000 and had to report that in say one trip, you could theoretically lie and come up with some losses to offset it.
This is kind of my point.
Say you theoretically buy 10 lottery tickets a day for a year. One hits for something modest like $50,000. Rest are duds. You have to pay something like $15,000 in taxes. Can you say “oh, but I had $10,000 in losses from all the tickets I didn’t win” to reduce your tax burden? That’s pretty silly.
I'm sure if you were audited youd have to have some type of proof. Just creating a fake log might work though.
Same with a lot of other things. People can write off mileage. Did you drive 8,000 miles for your business or 23,000?
Absolutely you can. At the dog track in west Memphis we used to pick up discarded losing tickets in case they were ever needed.
Yeah but the mileage on your vehicle is at least capped at some maximum of total miles on the odometer. Gambling losses could be made infinitely as big as you needed them to be.