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  1. #51
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    I just found out that I can ask my local for a detail summary and it will print every machine I played and how long, coin in and coin out. That will make it much easier if that is correct. Will check into it today.

  2. #52
    Senior Member thelma's Avatar
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    Quote Originally Posted by nrr View Post
    The IRS has just reeased Publication 529 (Miscellaneous Deductions) for 2018, on page 10 (or so) Gambling is discussed. It seems to me that the documentation needed to substantiate play (if followed to a T) would make playing slots a super chore/bore.
    NO mention is made of "professiona gambler", but transportation costs to get to a casino is counted in the "loss" column. Perhaps the actual law text may say more.
    Gambling losses include the actual
    cost of wagers plus expenses incurred in connection with
    the conduct of the gambling activity, such as travel to and
    from a casino. You can't deduct gambling losses that are
    IRS makes many mistakes and also tries to create "doctrine" which is IRS lingo for usurping Congress' power and authority to legislate the Tax code which they tried to do in the case of
    1) Summa Holdings, which took advantage of legitimate tax breaks in the Law and was told by IRS that they couldn't use them because they were attempting to avoid higher taxes by using the breaks Congress legislated... US Court of Appeals, 6th District ruled for Summa and gave a scathing rebuke to IRS.
    2) Sang J Park v IRS. Park was a non-resident alien from S Korea. IRS said he couldn't write gambling losses off v. his wins because... non-resident aliens get no such deduction. US Court of Appeals DC Circuit ruled in favor of Park (and all non-resident alien gamblers) and against IRS in 2013... and yet, Pub 529 for TY 2018 still states: "Generally, nonresident aliens can't deduct gambling losses on Schedule A (Form 1040NR)." Five years after US District Court ruled they CAN do so... still writing that BS in Pub 529...

    IRS doesn't know what it's doing - or does, and just wants to pad the revenue they haul in.
    Either way, they can't be trusted to publish factual info.
    Last edited by thelma; 02-09-2019 at 05:19 PM.

  3. #53
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    For 2018 I have more losses than W2G wins AND more than the (single) standard deduction, so I won't need the travel benefit--but could at some future date (in 2019).
    I'm assuming the IRS won't hassle me at my bet level.(???)

  4. #54
    Senior Member thelma's Avatar
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    Quote Originally Posted by nrr View Post
    For 2018 I have more losses than W2G wins AND more than the (single) standard deduction, so I won't need the travel benefit--but could at some future date (in 2019).
    I'm assuming the IRS won't hassle me at my bet level.(???)
    If you do what is 'expected' of you: sum up all your W2-G amounts and enter that as Gambling Income, and then claim that same amount as Gambling Losses, there is a slim to near-none chance they'll hassle you.
    If they were to question your return, you would have to give them what is 'required' which is not the same as what is 'expected'. See the problem?

    And if that were to happen -the questioning of your return- in a year when you chose to use "travel benefits" and you are not a Professional Gambler, you'll get a bill.
    "Travel benefits" are not allowed for personal deductions, only for business expenses and unless you can prove to IRS that you engage in gambling as a trade or business, you are not allowed expenses incurred in trade or business. I understand why this is confusing -the IRS and the Code make it so complicated, most people hire accountants or tax attorneys -or use software. But if you follow the steps from bottom up RE the Code, then you get to where the light goes on and you understand what you can and can't do.

    But again: being designated a Professional Gambler is VERY difficult and only folks like Phil Ivey et al meet the test.
    Last edited by thelma; 02-11-2019 at 03:17 PM.

  5. #55
    Senior Member thelma's Avatar
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    Quote Originally Posted by thelma View Post
    If you do what is 'expected' of you: sum up all your W2-G amounts and enter that as Gambling Income, and then claim that same amount as Gambling Losses, there is a slim to near-none chance they'll hassle you.
    If they were to question your return, you would have to give them what is 'required' which is not the same as what is 'expected'. See the problem?

    And if that were to happen -the questioning of your return- in a year when you chose to use "travel benefits" and you are not a Professional Gambler, you'll get a bill.
    "Travel benefits" are not allowed for personal deductions, only for business expenses and unless you can prove to IRS that you engage in gambling as a trade or business, you are not allowed expenses incurred in trade or business. I understand why this is confusing -the IRS and the Code make it so complicated, most people hire accountants or tax attorneys -or use software. But if you follow the steps from bottom up RE the Code, then you get to where the light goes on and you understand what you can and can't do.

    But again: being designated a Professional Gambler is VERY difficult and only folks like Phil Ivey et al meet the test.
    By the way, the reason why I get a CP Notice every year is because I do what is 'required' when I calculate my gambling income and my gambling losses for the year and this is different than what the IRS cross-checking software 'expects' to see. I calculate my gains and losses to gambling income in the way I am required to -and that's exactly what I must do in order to prove my income and my losses. @Casualplayer knows this is true and because she's not confident she can produce a log -and doesn't want to go through the hassle of keeping logs and records, nor wants the anxiety she knows she'll personally experience if questioned by IRS - she opts to take the tax hit. There is nothing wrong with that. She has valid personal reasons (stated) why she concedes that money to the IRS. I get that. I'm just different.

  6. #56
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    I've using Turbo Tax for several years and have been "obediently" entering each W2-G line by line...very time consuming. I have LOTS of W2-Gs for 2018 with NO tax withheld. In the past the aggregate W2-G total wound up on line 21 of form 1040, now it is line 21 of Schedule 1. Since I efile I don't believe the individual W2-Gs (at my end) get transmitted to the IRS--just the total.(?)
    I spoke with a TT "Tax Person" who had some vague idea of how to proceed, the suggestion was create ONE single W2-G and enter the aggregae total. Is just going to line 21 a better option?

  7. #57
    Senior Member thelma's Avatar
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    Quote Originally Posted by nrr View Post
    I've using Turbo Tax for several years and have been "obediently" entering each W2-G line by line...very time consuming. I have LOTS of W2-Gs for 2018 with NO tax withheld. In the past the aggregate W2-G total wound up on line 21 of form 1040, now it is line 21 of Schedule 1. Since I efile I don't believe the individual W2-Gs (at my end) get transmitted to the IRS--just the total.(?)
    I spoke with a TT "Tax Person" who had some vague idea of how to proceed, the suggestion was create ONE single W2-G and enter the aggregae total. Is just going to line 21 a better option?
    Since there was no tax withheld, then no need for each one, just the aggregate which yes, will be entered at line 21. IRS only requires copies of W2-Gs if tax was withheld. In your case, give the aggregate.
    The only thing the IRS computer is cross checking for is the aggregate.

    The software doesn't 'think', it just does what it's programmed to do. If tax was withheld and W2-G info is given, the program will create and send them with the return AND will grab the WH amount(s) and sum that with other 'taxes paid' to calculate totals. That's why software divides up into by W2-G and Misc income (Misc also meaning any other gambling income gained outside a W2-G, like a session where you won $900 through the session).
    Last edited by thelma; 02-13-2019 at 02:02 AM.

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