vpFREE2 Forums

1099's

#1

1.5. Re: 1099's
Date: Fri Feb 12, 2010 10:18 am ((PST))

Thanks for your response....I understand that I still need to report non-W2G
wins too.

However, is "session" required or just preferred? I guess where I"m
confused is that I thought you could take your entire wins for FULL YEAR
and deduct your losses for that same year (this is after reporting ALL
wins). So, even if I had big wins at a casino and small wins at lottery or
bingo somewhere, I could deduct all the losses cumulatively to offset the
wins. Is that wrong?

That, as I understand it, is NOT wrong -- that's exactly what you're supposed to do. You'll report total of wins, total of losses, and pay accordingly if necessary. But many people will attach their session records if total wins do not add up to enough to account for all W2G wins, since that's what seems to get IRS excited. Or -- you can wait for the audit, and then produce your gambling records.

For VP / casino play, your RECORDS can't just say, I won $1500 at VP (or whatever you played) last year, total; that would be nice, but IRS expects more detail. For lottery, it's my understanding that it makes no sense to have "sessions, and that you CAN say, I bought $500 in lottery tickets last year and cashed the winning tickets for a total of $400 for a net $100 loss.

Again, this is my understanding. You've already seen one response that says I got some of it wrong; I'm just trying to help. I don't think any of us are tax professionals here; Jean Scott's responses are based on her expertise obtained by writing a book WITH a tax professional, as I understand it, so her answers are probably closest to "right".

The worst of it is, "right" notwithstanding, the IRS can always mess with you if the reviewing / auditing agent THINKS you did it wrong, and then you have to convince them you're right. Regardless of how the return was completed, that's when good records (a contemporaneously maintained gambling log is difficult for them to argue with) will help you; after that, it's just a matter of convincing them that you used that data to generate the correct tax.

--BG

···

==============

--BG

================

#2

Ok...I think I understand it....

Since my losses always offset all W2s and total wins (I play mostly
SLOTS!...hangs head in shame...lol) I think I'm probably okay.

Of course, I suppose if I ever hit the "big one" it wouldn't hurt to have
better records.

Thank you.

···

On Sat, Feb 13, 2010 at 2:24 AM, Barry Glazer <b.glazer@att.net> wrote:

That, as I understand it, is NOT wrong -- that's exactly what you're
supposed to do. You'll report total of wins, total of losses, and pay
accordingly if necessary. But many people will attach their session records
if total wins do not add up to enough to account for all W2G wins, since
that's what seems to get IRS excited. Or -- you can wait for the audit, and
then produce your gambling records.

[Non-text portions of this message have been removed]

#3

You're always OK unless you're audited. If you're audited you will need to
show session records or all your losses may be disallowed.

I'm not sure what state you live in, but some states don't allow a deduction
for losses at all.

Cogno

···

-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf
Of Jayne
Sent: Saturday, February 13, 2010 2:27 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: 1099's

Ok...I think I understand it....

Since my losses always offset all W2s and total wins (I play mostly
SLOTS!...hangs head in shame...lol) I think I'm probably okay.

Of course, I suppose if I ever hit the "big one" it wouldn't hurt to
have
better records.

Thank you.

On Sat, Feb 13, 2010 at 2:24 AM, Barry Glazer <b.glazer@att.net> wrote:

>
>
>
> That, as I understand it, is NOT wrong -- that's exactly what you're
> supposed to do. You'll report total of wins, total of losses, and pay
> accordingly if necessary. But many people will attach their session
records
> if total wins do not add up to enough to account for all W2G wins,
since
> that's what seems to get IRS excited. Or -- you can wait for the
audit, and
> then produce your gambling records.
>
>
>

[Non-text portions of this message have been removed]

------------------------------------

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

#4

I was told that losses are only allowed to offset wins if you are a "professonal gambler".

True or untrue?

I won a $7,000 Royal progressive last year and was issued the usual 1099.

Won't I be able to use my losses to offset this win?

                                                 Thanks,

                                                Bruce S.

···

-----Original Message-----
From: Cogno Scienti <cognoscienti@gmail.com>
To: vpFREE@yahoogroups.com
Sent: Sat, Feb 13, 2010 4:44 pm
Subject: RE: [vpFREE] Re: 1099's

You're always OK unless you're audited. If you're audited you will need to
show session records or all your losses may be disallowed.

I'm not sure what state you live in, but some states don't allow a deduction
for losses at all.

Cogno

-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf
Of Jayne
Sent: Saturday, February 13, 2010 2:27 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: 1099's

Ok...I think I understand it....

Since my losses always offset all W2s and total wins (I play mostly
SLOTS!...hangs head in shame...lol) I think I'm probably okay.

Of course, I suppose if I ever hit the "big one" it wouldn't hurt to
have
better records.

Thank you.

On Sat, Feb 13, 2010 at 2:24 AM, Barry Glazer <b.glazer@att.net> wrote:

>
>
>
> That, as I understand it, is NOT wrong -- that's exactly what you're
> supposed to do. You'll report total of wins, total of losses, and pay
> accordingly if necessary. But many people will attach their session
records
> if total wins do not add up to enough to account for all W2G wins,
since
> that's what seems to get IRS excited. Or -- you can wait for the
audit, and
> then produce your gambling records.
>
>
>

[Non-text portions of this message have been removed]

------------------------------------

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

[Non-text portions of this message have been removed]

#5

Untrue. As a nonprofessional, you can deduct losses to the extent of your wins.

···

To: vpFREE@yahoogroups.com
From: BCarStew@aol.com
Date: Sat, 13 Feb 2010 20:59:26 -0500
Subject: Re: [vpFREE] Re: 1099's

I was told that losses are only allowed to offset wins if you are a "professonal gambler".

True or untrue?

I won a $7,000 Royal progressive last year and was issued the usual 1099.

Won't I be able to use my losses to offset this win?

                                                 Thanks,

                                                Bruce S.

_________________________________________________________________
Hotmail: Free, trusted and rich email service.
http://clk.atdmt.com/GBL/go/201469228/direct/01/

[Non-text portions of this message have been removed]

#6

My prior answer is only true for federal tax purposes. As for state tax purposes, it will depend upon where you live.

···

To: vpFREE@yahoogroups.com
From: BCarStew@aol.com
Date: Sat, 13 Feb 2010 20:59:26 -0500
Subject: Re: [vpFREE] Re: 1099's

I was told that losses are only allowed to offset wins if you are a "professonal gambler".

True or untrue?

I won a $7,000 Royal progressive last year and was issued the usual 1099.

Won't I be able to use my losses to offset this win?

                                                 Thanks,

                                                Bruce S.

_________________________________________________________________
Hotmail: Powerful Free email with security by Microsoft.
http://clk.atdmt.com/GBL/go/201469230/direct/01/

[Non-text portions of this message have been removed]

#7

This is only true if you itemize your deductions and not true if you take standard deduction. Correct?

Doug

···

--- In vpFREE@yahoogroups.com, kelso 1600 <kelso1600@...> wrote:

Untrue. As a nonprofessional, you can deduct losses to the extent of your wins.

> To: vpFREE@yahoogroups.com
> From: BCarStew@...
> Date: Sat, 13 Feb 2010 20:59:26 -0500
> Subject: Re: [vpFREE] Re: 1099's
>
>
> I was told that losses are only allowed to offset wins if you are a "professonal gambler".
>
> True or untrue?
>
> I won a $7,000 Royal progressive last year and was issued the usual 1099.
>
> Won't I be able to use my losses to offset this win?
>
> Thanks,
>
> Bruce S.
>

_________________________________________________________________
Hotmail: Free, trusted and rich email service.
http://clk.atdmt.com/GBL/go/201469228/direct/01/

[Non-text portions of this message have been removed]

#8

Correct, I failed to mention that line and just assumed the person was itemizing.

And as I also added, this is for federal tax purposes; state taxes may be different.

···

To: vpFREE@yahoogroups.com
From: sanch34@yahoo.com
Date: Sun, 14 Feb 2010 14:33:26 +0000
Subject: [vpFREE] Re: 1099's

This is only true if you itemize your deductions and not true if you take standard deduction. Correct?

Doug

--- In vpFREE@yahoogroups.com, kelso 1600 <kelso1600@...> wrote:
>
>
> Untrue. As a nonprofessional, you can deduct losses to the extent of your wins.
>
> > To: vpFREE@yahoogroups.com
> > From: BCarStew@...
> > Date: Sat, 13 Feb 2010 20:59:26 -0500
> > Subject: Re: [vpFREE] Re: 1099's
> >
> >
> > I was told that losses are only allowed to offset wins if you are a "professonal gambler".
> >
> > True or untrue?
> >
> > I won a $7,000 Royal progressive last year and was issued the usual 1099.
> >
> > Won't I be able to use my losses to offset this win?
> >
> > Thanks,
> >
> > Bruce S.
> >
>
>
> _________________________________________________________________
> Hotmail: Free, trusted and rich email service.
> http://clk.atdmt.com/GBL/go/201469228/direct/01/
>
> [Non-text portions of this message have been removed]
>

------------------------------------

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

_________________________________________________________________
Hotmail: Trusted email with Microsoft’s powerful SPAM protection.
http://clk.atdmt.com/GBL/go/201469226/direct/01/

[Non-text portions of this message have been removed]

#9

You should have received a W-2G, not a 1099, for hitting a slot jackpot.

You can deduct gambling losses to the extent of wins on Sch. A, only if you itemize. You are asked to keep a log of all your gambling sessions for the year, but this does not get submitted with your tax return. It's backup in case you get audited.

Cogno

···

-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf
Of BCarStew@aol.com
Sent: Saturday, February 13, 2010 5:59 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: 1099's

I was told that losses are only allowed to offset wins if you are a
"professonal gambler".

True or untrue?

I won a $7,000 Royal progressive last year and was issued the usual
1099.

Won't I be able to use my losses to offset this win?

                                                 Thanks,

                                                Bruce S.

-----Original Message-----
From: Cogno Scienti <cognoscienti@gmail.com>
To: vpFREE@yahoogroups.com
Sent: Sat, Feb 13, 2010 4:44 pm
Subject: RE: [vpFREE] Re: 1099's

You're always OK unless you're audited. If you're audited you will need
to
show session records or all your losses may be disallowed.

I'm not sure what state you live in, but some states don't allow a
deduction
for losses at all.

Cogno

> -----Original Message-----
> From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On
Behalf
> Of Jayne
> Sent: Saturday, February 13, 2010 2:27 PM
> To: vpFREE@yahoogroups.com
> Subject: Re: [vpFREE] Re: 1099's
>
> Ok…I think I understand it…
>
> Since my losses always offset all W2s and total wins (I play mostly
> SLOTS!..hangs head in shame…lol) I think I'm probably okay.
>
> Of course, I suppose if I ever hit the "big one" it wouldn't hurt to
> have
> better records.
>
> Thank you.
>
> On Sat, Feb 13, 2010 at 2:24 AM, Barry Glazer <b.glazer@att.net> > wrote:
>
> >
> >
> >
> > That, as I understand it, is NOT wrong – that's exactly what
you're
> > supposed to do. You'll report total of wins, total of losses, and
pay
> > accordingly if necessary. But many people will attach their session
> records
> > if total wins do not add up to enough to account for all W2G wins,
> since
> > that's what seems to get IRS excited. Or – you can wait for the
> audit, and
> > then produce your gambling records.
> >
> >
> >
>
>
> [Non-text portions of this message have been removed]
>
>
>
> ------------------------------------
>
> vpFREE Links: http://members.cox.net/vpfree/Links.htm
>
> Yahoo! Groups Links
>
>
>

[Non-text portions of this message have been removed]

------------------------------------

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

#10

You can deduct your losses (up to your total win amount) on the IRS Schedule A. You do not have to be a professional gambler to do that.
You do still need to report your winnings even if you had a net loss at the end of the year.

-Mark

···

--- In vpFREE@yahoogroups.com, BCarStew@... wrote:

I was told that losses are only allowed to offset wins if you are a "professonal gambler".

True or untrue?

I won a $7,000 Royal progressive last year and was issued the usual 1099.

Won't I be able to use my losses to offset this win?

                                                 Thanks,

                                                Bruce S.

#11

Even if you have a net loss at the end of the year, you do need to report the winnings and deduct the losses.

As a simple example:

Session 1:
Hit Royal for $2000, but play more and end up with $1500 profit at end of session.
Gambling win = $1500

Session 2:
No major hits and you lose $500
Gambling loss = $500

Session 3:
Wild losing session and you drop $2000
Gambling loss = $2000

Session 4:
Long session, but no big wins and you cashed out exactly what you put in.
Gambling win = $0

Those are your only sessions of the year, so what do you do?

You report a win of $1500 (and are taxed on that) and can deduct $1500 of your $2500 loss on your Schedule A.
Personally I would report the full $2000 win and deduct $2000 for the losses since the IRS already knows that you won $2000. It seems to be a grey area, so I would rather play it safe there. It does mean paying more tax in the end.

If you claim that you did not have any gambling winnings (since you had a net loss for the year), you are asking for trouble.

Take Care,
Mark

···

--- In vpFREE@yahoogroups.com, Jayne <jaynedoe13@...> wrote:

Since my losses always offset all W2s and total wins (I play mostly
SLOTS!...hangs head in shame...lol) I think I'm probably okay.