vpFREE2 Forums

FSP strategy ideas

#1

Why don't they represent profit? I' ve always tried to collect as many W2g's as I could get my hands on. How they affect AGI should never become a factor if a player is going to play to win. And like our friends at GE have discovered, "creative accounting" is a means to a very meaningful end.

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----- Reply message -----
From: "vp_wiz" <harry.porter@verizon.net>
To: <vpFREE@yahoogroups.com>
Subject: [vpFREE] Re: FSP strategy ideas
Date: Sun, Jan 22, 2012 11:26 pm
Cardfather wrote:

HUH? Just me being me......I would happily pay the taxes on $5 & up royals EVERY DAY OF MY LIFE.

BUT, that's just me. :slight_smile:

Assume the concern isn't with RF w-2G's, but with those issued on lower level hits (SF's, multiline quads, etc). They don't represent profit, but serve to inflate AGI and can reduce legitimate deductions via phase-outs, etc.

- H.

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

#2

When those w-2g's start effecting your Social Security income they no longer represent real profit. If your AGI is too high you start losing benefits. This is usually only the case for those collecting those benefits. Otherwise it only effects your deductions on Schedule A.
Sure you get to write off gambling losses against winnings, so for the younger crowd it is not an issue.

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--- In vpFREE@yahoogroups.com, "rob.singer1111@yahoo.com" <rob.singer1111@...> wrote:

Why don't they represent profit? I' ve always tried to collect as many W2g's as I could get my hands on. How they affect AGI should never become a factor if a player is going to play to win. And like our friends at GE have discovered, "creative accounting" is a means to a very meaningful end.

Sent from my Verizon Wireless 4GLTE smartphone

----- Reply message -----
From: "vp_wiz" <harry.porter@...>
To: <vpFREE@yahoogroups.com>
Subject: [vpFREE] Re: FSP strategy ideas
Date: Sun, Jan 22, 2012 11:26 pm
Cardfather wrote:

> HUH? Just me being me......I would happily pay the taxes on $5 & up royals EVERY DAY OF MY LIFE.

> BUT, that's just me. :slight_smile:

Assume the concern isn't with RF w-2G's, but with those issued on lower level hits (SF's, multiline quads, etc). They don't represent profit, but serve to inflate AGI and can reduce legitimate deductions via phase-outs, etc.

- H.

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

#3

the7thwarrior wrote:

When those w-2g's start effecting your Social Security income they no longer represent real profit. If your AGI is too high you start losing benefits. This is usually only the case for those collecting those benefits. Otherwise it only effects your deductions on Schedule A.
Sure you get to write off gambling losses against winnings, so for
the younger crowd it is not an issue.

This only begins to describe the tip of the iceberg. There are a wide range of exemptions, deductions, credits and other tax related items that are reduced/limited by Adjusted Gross Income above specified caps (AGI = essentially, income before deductions).

Reported W-2G income serves to inflate AGI without the benefit of offsetting loss deductions, with a consequence to many that they end up paying more tax when gaming activity is accounted for, even in absence of a net win.

Fortunately, a good number of such AGI limitations lapsed from the tax code with 2009. But enough remain that it's something about which any prudent player should remain circumspect.