Jean:
I have more thoughts on your statements about 1099's.
All of the tournaments that I enter are free, invitational
tournaments. If I win $5,000.00 during one of these free
tournaments, and I receive a 1099 for it, how can that be
considered 'gambling' winnings, since I never placed a wager?
Your quote from the 'professional gambler' ["The
character of the income is not changed by the form on
which the casino reports it - the 1099 or the W-2G."]
does not sound logical. If there there is no difference in the
'character of the income' - why is there a difference in
reporting forms? Common sense would be that there has
got to be some kind of difference between the two.
I think that a quote from an IRS agent or a tax
professional would be more helpful than a quote from
'one professional gambler.' I will look into it and
post what I can find out.
Curtis
···
On 12/15/05, Jean Scott <QueenofComps@frugalgambler.biz> wrote:
Many (most?) gamblers DO add 1099 gambling amounts to their machine/table
gambling wins. This is an area that is not covered clearly in the IRS
regulations, but most knowledgeable accountants and tax preparers will
advise that these can be added together if the 1099 income (like for
tournaments or drawings) is directly related to gambling. It could be
considered gambling INCOME rather than a PRIZE.In the tax book, I said that one professional gambler, when asked if the
nature of the casino paperwork determined how to report something,
responded: "The character of the income is not changed by the form on
which
the casino reports it - the 1099 or the W-2G."
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