I had another successful year playing VP in 2007. This is the time of
the year to accumulate tax information, so I asked for a won/loss
statement from a casino that I had been on the negative side. I was
quite surprised to find it was about $1500 more than my calculations.
I realized that this difference was the amount of free play that I had
from this casino. So, this free play comes to me in a tax free manner
(unlike other money in my pocket) and in addition if I lose this money
(I did), I get to take it as a tax deduction as a gambling loss on my
schedule A.
Free Play and Won Loss Statements
I had another successful year playing VP in 2007. This is the time
of
the year to accumulate tax information, so I asked for a won/loss
statement from a casino that I had been on the negative side. I
was
quite surprised to find it was about $1500 more than my
calculations.
I realized that this difference was the amount of free play that I
had
from this casino. So, this free play comes to me in a tax free
manner
(unlike other money in my pocket) and in addition if I lose this
money
(I did), I get to take it as a tax deduction as a gambling loss on
my
schedule A.
Interesting...Can you tell us which casino it is?
I'll have to check mine very closely.
Don the Dentist
ยทยทยท
--- In vpFREE@yahoogroups.com, "hamstockman" <AB6PQ@...> wrote:
hamstockman wrote:
I had another successful year playing VP in 2007. This is the time
of the year to accumulate tax information, so I asked for a won/loss
statement from a casino that I had been on the negative side. I
was quite surprised to find it was about $1500 more than my
calculations.
I realized that this difference was the amount of free play that I
had from this casino. So, this free play comes to me in a tax free
manner (unlike other money in my pocket) and in addition if I lose
this money
(I did), I get to take it as a tax deduction as a gambling loss on
my schedule A.
dds2124 wrote:
Interesting...Can you tell us which casino it is?
I'll have to check mine very closely.
I know of no casino that includes player cash incentives in it's
win/loss statement -- be it free play, cashback, cash bonuses, etc.
Win/Loss statements typically track only the result of wagers at the
machine. (I expect that wagers during the play off of Free Play
credits is excluded.)
Whether you can exclude any of these cash infusions from your play
results for tax accounting is a matter of interpretation of the tax
regulations. I'll suggest that from a constructive interpretation
that all are to be included. However, as I said, that's up to the
taxpayer to decide for themselves (and the IRS, during an audit).
I know of some filers who include all cash incentives, but exclude
merchandise ones. Once again, it would be instructive to know Miss
Craps experience in this area in her audit (but were I her, this is
something I wouldn't elect to disclose here under any circumstance).
- Harry
<<I know of no casino that includes player cash incentives in it's
win/loss statement -- be it free play, cashback, cash bonuses, etc.
Win/Loss statements typically track only the result of wagers at the
machine. (I expect that wagers during the play off of Free Play
credits is excluded.)>>
MGM-Mirage properties and Wynn count the coin-out received from playing off
free play, but they do not count the free play as coin in. You could look at
it as adding the amount of free play to your win/loss statement and then
adjusting it by your win/loss on the free play. Or you could look at it as
simply adding the total coin out from the free play to your win/loss
statement.
Cogno