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Another tax question regarding additional deductions.

9. Another tax question regarding additional deductions.
Date: Sun Jan 4, 2009 1:30 pm ((PST))

I play the California Lotto "Fantasy5" and I have won twice this year!

I also have a W2G, for a RF, from the CA Pala Casino.

As long as I keep tract of all of my losses, can I apply my lotto
losses to the VP gains and visa versa? That is, merge all the
winnings and losses, from all games, together for one figure?

What are some of the other deductions? Can I deduct travel mileage?
Meals. And assuming that I had to pay for them, hotel rooms ? Other
expenses ? Books? Computer software ?

I have already requested that all the casinos, I have played at, send
me a statement of my winnings and losses.

That else do I need ?

My understanding (and there are better experts out there) is that you can deduct all your losses against your winnings, deduction not to exceed your winnings. Expenses incurred in gambling but not actually gambling losses are not deductible unless you are a professional gambler, and I don't know what it takes to qualify, but I think it at least has to be your primary source of income. I hope you kept your losing tickets, plus copies of any you turned in that lost (e.g., bought a $5 ticket that paid $1) as documentation of your losses, as you will need to be able to document these deductions just like any others if they audit you.

A written record of lottery purchases and losses MAY be found sufficient documentation, and having losing tickets in your hand may not be sufficient (you can pick them up on the floor, etc.), but the more documentation, the better. Same goes for the casino win/loss statements, which also should be supplemental to, but not in place of, your own documentation / gambling log.

--BG

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http://www.irs.gov/taxtopics/tc419.html

You may deduct gambling losses only if you itemize deductions. Claim
your gambling losses as a miscellaneous deduction on Form 1040,
Schedule A (PDF). However, the amount of losses you deduct may not be
more than the amount of gambling income you have reported on your
return. It is important to keep an accurate diary or similar record of
your gambling winnings and losses. To deduct your losses, you must be
able to provide receipts, tickets, statements or other records that
show the amount of both your winnings and losses. Refer to Publication
529, Miscellaneous Deductions, for more information.

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--- In vpFREE@yahoogroups.com, b.glazer@... wrote:

... gambling log.

<< As long as I keep tract of all of my losses, can I apply my lotto

losses to the VP gains and visa versa? That is, merge all the
winnings and losses, from all games, together for one figure?>>

Yes.

<<What are some of the other deductions? Can I deduct travel mileage?

Meals. And assuming that I had to pay for them, hotel rooms ? Other
expenses ? Books? Computer software ? >>

Only if you file as a professional gambler - which has a host of issues to consider! That is covered in my book, Tax Help for Gamblers, which will give more details on other questions you and others might have.

···

________________
Jean $�ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://lasvegasadvisor.com/blogs/jscott/

Thank you Jean:

I own both of your books: "Frugal VP" and "Frugal Gambler". Enjoyed them. I also have your software.

Can't stop getting those quad wild deuces!

Roy

···

----- Original Message -----
  From: Jean Scott
  To: AA vpFREE Group
  Sent: Monday, January 05, 2009 10:27 PM
  Subject: Re: [vpFREE] Re: Another tax question regarding additional deductions.

  << As long as I keep tract of all of my losses, can I apply my lotto
  > losses to the VP gains and visa versa? That is, merge all the
  > winnings and losses, from all games, together for one figure?>>

  Yes.

  <<What are some of the other deductions? Can I deduct travel mileage?
  > Meals. And assuming that I had to pay for them, hotel rooms ? Other
  > expenses ? Books? Computer software ? >>

  Only if you file as a professional gambler - which has a host of issues to
  consider! That is covered in my book, Tax Help for Gamblers, which will
  give more details on other questions you and others might have.

  ________________
  Jean $¢ott, Frugal Gambler
  http://queenofcomps.com/
  You can read my blog at
  http://lasvegasadvisor.com/blogs/jscott/

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