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Illinois doesn't let recreational gamblers write off losses

#1

Hard to believe.

Couple's $500K Gambling Loss Deduction Won't Fly
By JEFF D. GORMAN
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     (CN) - An Illinois couple must pay taxes on their gambling winnings, but they cannot claim their losses as deductions, a state appeals court ruled.
     Because the Illinois Department of Revenue found that Jerry and MaryLou Byrd visited casinos as recreational gamblers, rather than as part of a business, it would not let them write off their losses for the tax years 1999 through 2002.
     The Byrds did most of their gambling at the slot machines of the Hollywood Casino in Aurora and the Grand Victoria Casino in Elgin.
     A trial court agreed with the department that the Byrds owed an additional $60,382 in state taxes, despite having incurred $437,977 in gambling losses during that period.
     Illinois' second appellate district court, based in Elgin, affirmed the lower court's ruling.
     "We conclude that, because the evidence shows that the Byrds did not devote themselves full-time to gambling but that Jerry Byrd continued to work full-time in the graphic arts industry, where he drew a comfortable salary that supported the Byrds' gambling, there was no clear error in the department's determination that the Byrds' gambling activity was a pastime, not a trade or business," Judge Joseph Birkett wrote on behalf of the court.

#2

<<Couple's $500K Gambling Loss Deduction Won't Fly>>

This is true in many states for recreational gamblers. I'm "fighting" with Indiana over this right now despite the fact that I have filed federally as a professional gambler for ten years.

There is a list in the back of "Tax Help for Gamblers" that summarizes how each of the 50 states handle state taxes.

···

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

#3

I don't understand why this is newsworthy. It is not hard to believe at
all.

···

On Wed, Mar 23, 2011 at 12:11 PM, VpKing77 <vpking77@yahoo.com> wrote:

Hard to believe.

Couple's $500K Gambling Loss Deduction Won't Fly
By JEFF D. GORMAN
ShareThis
    (CN) - An Illinois couple must pay taxes on their gambling winnings,
but they cannot claim their losses as deductions, a state appeals court
ruled.
    Because the Illinois Department of Revenue found that Jerry and MaryLou
Byrd visited casinos as recreational gamblers, rather than as part of a
business, it would not let them write off their losses for the tax years
1999 through 2002.
    The Byrds did most of their gambling at the slot machines of the
Hollywood Casino in Aurora and the Grand Victoria Casino in Elgin.
    A trial court agreed with the department that the Byrds owed an
additional $60,382 in state taxes, despite having incurred $437,977 in
gambling losses during that period.
    Illinois' second appellate district court, based in Elgin, affirmed the
lower court's ruling.
    "We conclude that, because the evidence shows that the Byrds did not
devote themselves full-time to gambling but that Jerry Byrd continued to
work full-time in the graphic arts industry, where he drew a comfortable
salary that supported the Byrds' gambling, there was no clear error in the
department's determination that the Byrds' gambling activity was a pastime,
not a trade or business," Judge Joseph Birkett wrote on behalf of the court.

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

#4

You don't understand why getting taxed without income is newsworthy?

Interesting!

In that case I'd like to borrow some money from you at 10% interest (to you) compounded daily.

I hope you realize I'm just being funny. I'm sure what you meant is that it's not hard to believe the government is flawed and greedy. No argument there.

~FK

--- In vpFREE@yahoogroups.com, Luke Fuller <kungalooosh@...> wrote: I don't understand why this is newsworthy. It is not hard to believe at all.