vpFREE2 Forums

A TAXING QUESTION

#1

Howdy

I know this question has been adressed numerous times on the VP forums we
all come to
know and love. However some of my memory has gone south on a permanent
vacation without
taking me along. It's part of the experience at least some of us encounter
in our Golden
Years (sic).

Besides our gaming winnings when appllicable, are cashbacks or any other
casino perk or
promotion taxable? I know if you win a $10000 cash prize or a $50000 sports
car you have
to cough up to dear uncle. But what is the rest of the story?

Old Grumpy

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#2

any other casino perk or promotion taxable?>>>>>>>>>>>>>>>>>>>>>>>>

There is no definitive answer to this question. Some people will
argue that cashback should just be added to your winnings and is
therefore clearly taxable. Some people distinguish between direct
(i.e. same day) cashback, and mail offers, as though the first is
more like a contractual obligation and the second is more like a
gift. Some people will argue that cash back is taxable if you are
a "professional" gambler, but not taxable for recreational
gamblers. Other people will arge that cash back is just a rebate
against your expected losses, and - like a rebate from the
manufacturer when you buy a car - is clearly NOT taxable. Opposing
arguments can also be made for non-cash casino comps.

I think we are better off if the IRS never makes a clear ruling
regarding comps and cash back, because we may not like the answer!

EE

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--- In vpFREE@yahoogroups.com, BANDSTAND54@A... wrote:

Besides our gaming winnings when appllicable, are cashbacks or