1d. Re: 1099's
Date: Wed Feb 10, 2010 9:34 am ((PST))
.... Depending on other income for the year, this can hurt you because of
the reduced value of your deductions or the Alternative minimum tax or both. I
will put in my disclaimer that this is just my opinion as I am not an EA or CPA
nor do I intend to be either.
There is later post by Jean Scott on this site. Whlie several other books
exist, the Gambling tax book by Ms. Scott and Marissa Chien is the best and most
current book addressing your question. Not only do I have a copy, but I gave
another copy to my CPA accountant. I stongly urge you to read this book.
DEnny
Another "can hurt you" is state income tax, which in many states is a gross income tax and does not allow losses to be deducted against winnings -- so that sessions totalling $100K in wins and $99K in losses can generate a state tax that is greater than the $1K net win! Obviously, this can remove the positive EV of many (?most / all?) games, and it hurts even more when you have a net loss year and still have to pay taxes on your winnings.
I also bought two of Jean's book, one for myself, and one for my best friend, who is not only a gambling buddy, but a CPA and tax accountant who has just retired from the IRS (collections, not audit) to go to the private sector.
--BG
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