In a message dated 8/31/2003 7:50:07 PM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
Date: Sun, 31 Aug 2003 19:15:50 -0500
From: "Howard Stern" <howard.w.stern@earthlink.net>
Subject: RE: Taxes and EVA player can list his occupation on form 1040 as a professional gambler.
This allows you to report losses as a direct reduction of income. (If you do not
do this, you can take losses as a deduction if you itemize. Note: that your
reported gambling losses cannot exceed your winnings if you itemize.) One
important difference is that by directly reducing the net income, you are not
liable for extra state income tax if you live in a state with a state income
tax. (45 states out of 50 - Not it Nevada??). This is not true is Mississippi
as they take a 3% gambling tax off the top of W2G wins. In any case it is
critical to keep completely accurate records as people who list "professional
gambler" as their occupation on a 1040 are about the most likely group to get
audited.
Listing yourself as a professional gambler might save you some tax expense
for now but the tradeoff could be a lot of audit time in the future. (Caution
for those who actually file tax returns & use their own SS#.)
Unless you really are a professional gambler, I don't think the tradeoff in
quality of life is worth it unless you're already on the audit "wanted"
posters.
[Non-text portions of this message have been removed]