been successful in cutting out ALL deductions for gambling
losses.<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Congress hasn't been able cut out deductions for gambling losses, but
several states have already accomplished this feat.
EE
--- In vpFREE@yahoogroups.com, "Jean Scott" <QueenofComps@f...> wrote:
And we need to be glad that some social police in Congress haven't
Has anyone seen a bigger play than the 10-play $25 machines at
Bellagio & Wynn? If you are dealt a pair of jacks on one of those
monsters, do you get a 1040g
--- In vpFREE@yahoogroups.com, "ozymandias77096" <ugwf@h...> wrote:
----------------------------------------------------
--- In vpFREE@yahoogroups.com, "eecounter" <eecounter@h...> wrote:
.......... A dealt pair of Jacks would indeed trigger a W2-G event
on the machine that you describe because the $1250 minimum payout
would exceed the $1200 threshold for W2-Gs. I would imagine the
casino would need to have someone stand behind the player the
entire time with a log sheet to record all of the W2-G hits. Then
they would probably issue you one big W2-G at the end of the
session..........
EE
------------------------------------------------------
That made perfect sense to me when I read it originally. However,
in the business section of the Sunday Chicago Tribune, there was
an article on Taxes & Gambling, which stated the following:
"For winners who receive at least $600 (or $1200 from bingo and slot
machines or $1500 from keno) and THOSE WINNINGS ARE 300 TIMES OR MORE
THE AMOUNT OF THE WAGER, the payer is required to issue a W-2G".
Assuming that this correct, the high denomination machines are exempt
from W-G2's unless the payoff equals 300 times more than the initial
wager. In that event, if my math is correct, a $25 10 play, which
requires $1250 per hand at max coin-in, must pay off $375,000 (on
ONE of the hands) in order to generate a W-2G!
This interesting article went on to explain that (in Illinois) a
gambler is not permitted to deduct gambling losses. One woman, who
had been playing on a $2000 bankroll for an entire year, was down
about $100 for the year. Due to the recycling of her bankroll, on
paper, she had won about $100,000. Because Illinois doesn't allow
deductions for losses, she owed nearly $6,000 in taxes on
her "winnings"!
The article also states that the IRS does permit deducting losses
against wins and goes on to say that if you are itemizing
deductions, wins should be reported on line 21 of Form 1040 and
losses should be reported on line 27 of Schedule A on the 1040 form.
PLEASE NOTE: I am merely quoting a newspaper article. I have
absolutely NO knowledge of whether this report is accurate. In all
cases, gamblers should consult their personal tax advisors before
reporting wins/losses on their tax returns.
Babe
--- In vpFREE@yahoogroups.com, "jackessiebabe" <jackessiebabe@y...>
wrote:
However, in the business section of the Sunday Chicago Tribune, there
was an article on Taxes & Gambling, which stated the following:
"For winners who receive at least $600 (or $1200 from bingo and slot
machines or $1500 from keno) and THOSE WINNINGS ARE 300 TIMES OR
MORE THE AMOUNT OF THE WAGER, the payer is required to issue a W-2G".
Assuming that this correct, the high denomination machines are exempt
from W-G2's unless the payoff equals 300 times more than the initial
wager.
===========================================
As far as I'm concerned, this is NOT correct. Hitting Aces on a $5
bonus machine got me a W2-G several years ago at Lady Luck. That was
only an 80 to 1 payoff. I'm sure that Jean could add to this.
jackessiebabe wrote:
That made perfect sense to me when I read it originally. However,
in the business section of the Sunday Chicago Tribune, there was
an article on Taxes & Gambling, which stated the following:"For winners who receive at least $600 (or $1200 from bingo and slot
machines or $1500 from keno) and THOSE WINNINGS ARE 300 TIMES OR
MORE THE AMOUNT OF THE WAGER, the payer is required to issue a
W-2G".Assuming that this correct, the high denomination machines are
exempt from W-G2's unless the payoff equals 300 times more than the
initial wager.
As suggested by others, Babe, the paper has distorted the facts.
Specifics on the IRS guidance to casinos in reporting wins can be
found at: http://www.irs.gov/pub/irs-pdf/iw2g.pdf
In brief, there are 3 types of winnings considered:
-- Horse racing, dog racing, jai alai, misc.
-- Sweepstakes, wagering pools, lotteries
-- Bingo, keno and slots.
With respect to this last class:
Reporting is required for bingo and slots for any payment of $1200+.
For keno a win of $1500+ (net of the wager) is reportable.
The "300x wager" rules apply to other classes of winnings.
- Harry
Quote from http://www.irs.gov/instructions/iw2g/ar02.html
---begin quote---
Generally, gambling winnings are reportable if the amount paid
reduced, at the option of the payer, by the wager is (a) $600 or more
and (b) at least 300 times the amount of the wager. However, these
requirements do not apply to winnings from bingo, keno, and slot
machines. Gambling winnings for these games are reportable if:
* The winnings (reduced by the wager) are $1,500 or more from a keno game.
* The winnings (not reduced by the wager) are $1,200 or more from
a bingo game or slot machine.
If you pay reportable gambling winnings, you must file Form W-2G with
the IRS and provide a statement to the winner (Copies B and C of Form
W-2G).
---end quote---
The 300x rule doesn't apply for slot machines. On a slot machine it's
a simple $1200 rule (hence the 239 and 1199-coin payoffs). Notice that
it applies to "winnings" seemingly without further details (I'm not
sure how playing 10-play VP counts in that case).
JBQ
On 7/11/05, staninnv <arnot@cox.net> wrote:
As far as I'm concerned, this is NOT correct. Hitting Aces on a $5
bonus machine got me a W2-G several years ago at Lady Luck. That was
only an 80 to 1 payoff. I'm sure that Jean could add to this.
Thanks, Harry (and others who posted on the subject also).
I should have known better than to believe ANYTHING that appears
in a newspaper!
Babe
-----------------------------------------
In vpFREE@yahoogroups.com, "Harry Porter" <harry.porter@v...>wrote:
As suggested by others, Babe, the paper has distorted the facts.
Specifics on the IRS guidance to casinos in reporting wins can be
found at: http://www.irs.gov/pub/irs-pdf/iw2g.pdf
In brief, there are 3 types of winnings considered:
-- Horse racing, dog racing, jai alai, misc.
-- Sweepstakes, wagering pools, lotteries
-- Bingo, keno and slots.
With respect to this last class:
Reporting is required for bingo and slots for any payment of
$1200+.
For keno a win of $1500+ (net of the wager) is reportable.
The "300x wager" rules apply to other classes of winnings.
- Harry
<<As suggested by others, Babe, the paper has distorted the facts.
Specifics on the IRS guidance to casinos in reporting wins can be
found at: http://www.irs.gov/pub/irs-pdf/iw2g.pdf
In brief, there are 3 types of winnings considered:
-- Horse racing, dog racing, jai alai, misc.
-- Sweepstakes, wagering pools, lotteries
-- Bingo, keno and slots.
With respect to this last class:
Reporting is required for bingo and slots for any payment of $1200+.
For keno a win of $1500+ (net of the wager) is reportable.
The "300x wager" rules apply to other classes of winnings.>>
Harry is correct here. Actually the gal that wrote the article interviewed
me at length by phone and I gave her some of the information, and Huntington
Press mailed her "Tax Help for the Frugal Gambler." But she interpreted the
information incorrectly while she was "summarizing." I had explained all
this clearly (I thought) on page 23 of the book! But we all know the media
is good at getting things wrong. You can read the whole article at http://www.chicagotribune.com/business/chi-0507090248jul10,1,2684376.story
By the way, there is another article by the same author also in yesterday's Chicago-Tribune. When she interviewed me she wanted to know how we handled gambling in retirement - it came at the end of the article about the horror stories of people who tried to use gambling to finance their retirement. You can read it at http://www.chicagotribune.com/business/chi-0507090250jul10,1,7997386.story. You may need to register in order to read these two articles but it is free and fairly quick and easy.
________________________________________
Jean $�ott - http://www.FrugalGambler.biz
for VP software and strategy cards.
NEW - Blackjack Strategy Cards +
Updated Second Edition of
"The Frugal Gambler."
I bow to the Queen.
With apologies for desiminating incorrect information to
the board, I promise that, from now on, I will not quote
from any newspaper article (unless I wrote it myself!)
Babe
-----------------------------------
In vpFREE@yahoogroups.com, "Jean Scott" <QueenofComps@f...> wrote:
Harry is correct here. Actually the gal that wrote the article
interviewed me at length by phone and I gave her some of the
information, and Huntington Press mailed her "Tax Help for the Frugal
Gambler." But she interpreted the information incorrectly while she
was "summarizing." I had explained all this clearly (I thought) on
page 23 of the book! But we all know the media is good at getting
things wrong........