Slot Wins Caused and Solved Problem

[darrellk]

Last weekend I sat down to do my income taxes only to find out that my 3 HP's in 2015 caused me to pay in on both the Federal and State returns.
I don't bother to offset the HP's by trying to prove my losses. I go so much that I don't keep records and frankly do not want to know the loss figure.
Since last weekend I was thinking to myself that if I got another HP before April I would apply the winnings to my taxes. Well something even better happened. I won on Wednesday and yesterday and when you combine those it is enough to cover the tax bills.
Here is a couple of highlights from my winning streak.
http://uploads.tapatalk-cdn.com/20160228/146a171da87968ffecfd43d05c37f50f.jpg
http://uploads.tapatalk-cdn.com/20160228/fb8b3ff9e2350f4a1f1e3a63aca4f10f.jpg
http://uploads.tapatalk-cdn.com/20160228/9b6931f10db11eeeb411f4cd117a7530.jpg
Life is Good !!!



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[sondor]

You should pull a couple win/loss statements and write it off......They never bother you about it.

[Jen Jen]

Nice Darrell! I love the Wonder 4 Jackpots.

[Jeani]

Nice....problem solved!

[slotbender]

You should pull a couple win/loss statements and write it off......They never bother you about it.

I definitely agree! Why should you pay taxes when you don't have to? I've been using the statements from casinos for years and there has never been a problem. You can also use any accumulated lottery tickets that were losers if more gambling losses are needed. darrellk I would get the casino win/loss statement(s) if I were you and save yourself some $$ : )

[darrellk]

I definitely agree! Why should you pay taxes when you don't have to? I've been using the statements from casinos for years and there has never been a problem. You can also use any accumulated lottery tickets that were losers if more gambling losses are needed. darrellk I would get the casino win/loss statement(s) if I were you and save yourself some $$ : )

I will request the win/loss statement asap. Not sure I lost enough to compensate for the HP's however so most likely nothing will change.

[michelelovesvegas]

I will request the win/loss statement asap. Not sure I lost enough to compensate for the HP's however so most likely nothing will change.

Don't forget about win/loss from Coushatta.

[darrellk]

Don't forget about win/loss from Coushatta.

I broke even at Coushatta so no need.


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[sondor]

I will request the win/loss statement asap. Not sure I lost enough to compensate for the HP's however so most likely nothing will change.

Even if it just covers a portion you will still avoid that part. You should be able to get the CET one online...Potto you have to go get I think, I did the year before when I won....

[darrellk]

Even if it just covers a portion you will still avoid that part. You should be able to get the CET one online...Potto you have to go get I think, I did the year before when I won....
sondor I know I lost at least $1000 at CET so I will be sure to get that one.
Stupid question can you add up statements from multiple casinos or just the ones that you had HPs in ?
Also I'm assuming you need to attach these statements with your returns ?
I thought I read if you declare your losses than you are not allowed to take the standard deduction. Any thoughts ?


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[sondor]

sondor I know I lost at least $1000 at CET so I will be sure to get that one.
Stupid question can you add up statements from multiple casinos or just the ones that you had HPs in ?
Also I'm assuming you need to attach these statements with your returns ?
I thought I read if you declare your losses than you are not allowed to take the standard deduction. Any thoughts ?


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You do not have to attach them, just have then if they audit(My first HP someone saved Dog Race slips and Lotto tickets, I had a whole shoe box)...I think most people just total wins and losses from all properties and come out with a final number. Some people say that's not right but I think that's how most do it......The last part I would have to ask my wife, we always do the long form so it's not a problem but you could be right on that last part.....

[Pat]

Nice Darrell. Good thinking

[Luckylinda123]

The IRS will not accept statements from the casino for proof of losses They want a log of casinos trips... Such as dates, machines played you can look up the law. Only a problem if you get audited. No don't attach casino win/loss when you file

[sondor]

sondor I know I lost at least $1000 at CET so I will be sure to get that one.
Stupid question can you add up statements from multiple casinos or just the ones that you had HPs in ?
Also I'm assuming you need to attach these statements with your returns ?
I thought I read if you declare your losses than you are not allowed to take the standard deduction. Any thoughts ?


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I never thought of it since I have itemized forever, but it looks like you have to itemize to take it. If you take the standard deduction you are out of luck.....Sorry



Limitations on loss deductions


The amount of gambling losses you can deduct can never exceed the winnings you report as income. For example, if you have $5,000 in winnings but $8,000 in losses, your deduction is limited to $5,000. You could not write off the remaining $3,000, or carry it forward to future years.


Reporting gambling losses


To report your gambling losses, you must be eligible to itemize your income tax deductions on Schedule A. You are eligible to itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. This means that if you claim the standard deduction, you are still obligated to report and pay tax on all winnings you earn during the year. However, you will not be able to deduct any of your losses.


Only gambling losses


The IRS does not permit you to simply subtract your losses from your winnings and report your net profit or loss. And if you have a particularly unlucky year, you cannot just deduct your losses without reporting any winnings. If the IRS allowed this, then it's essentially subsidizing taxpayer gambling.

The bottom line is that losing money at a casino or the race track does not by itself reduce your tax bill. You need to first owe tax on winnings before a loss deduction is available. Therefore, at best, deducting your losses allows you to avoid paying tax on your winnings, but nothing more.

[darrellk]

Just gonna take my lumps on this one. I've had seven previous years with one HP and I always just had my refund reduced some. I never tried deducting losses in those previous years and to start it now would only raise red flags.
As I have kept zero accounting records for my gambling the last thing I need is an audit.
As I mentioned at the start of this thread I made enough in the last week to cover my tax burden so I think the wisest and safest thing to do is maintain the status quo. Thanks for everyone's input. [emoji41]


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[slotbender]

Just gonna take my lumps on this one. I've had seven previous years with one HP and I always just had my refund reduced some. I never tried deducting losses in those previous years and to start it now would only raise red flags.
As I have kept zero accounting records for my gambling the last thing I need is an audit.
As I mentioned at the start of this thread I made enough in the last week to cover my tax burden so I think the wisest and safest thing to do is maintain the status quo. Thanks for everyone's input. [emoji41]


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I wouldn't worry about an audit. With only 3 lower hand pay's you're just small potatoes to them. I would show gambling losses for the year to keep some $$. But, it's up to you?

[slotjunkie]

I will request the win/loss statement asap. Not sure I lost enough to compensate for the HP's however so most likely nothing will change. If you have ever done the WOS at the casino and have used the casino ATM, you can also put that as a loss. I questioned this with my accountant, and she said that it is a legal deduction against your losses.

[dailun]

I had 18 W2-Gs last year and 19 W2-G's this year. I declared losses to match my winnings (no problem since I had marker receipts and a tracking log).

Unless your total winnings is 6 figures, I wouldn't worry unless there's something else on your tax return that's a red flag for audit. Mine were in the mid 5 figures.

Just my .02