In a message dated 12/15/2005 11:39:43 AM Pacific Standard Time,
harry.porter@verizon.net writes:
Your statement is a little puzzling. Short of deducting gaming losses
in excess of winnings and reporting a net loss for a year (you suggest
you accept the restriction from doing this), it's difficult to see how
you can file a return in a subsequent year that carries forward a loss
not previously reported.
Each review by the underreporting section IRS may be specific to some detail
that is difficult to incorporate in a general website communication.
As an example, your winnings exactly match your losses on the VP games
themselves. Now you start to list deductions on your Schedule C for the costs of
running your business;
Mileage, use of % square footage of your home for office, computer and online
services, travel, books, educational videos or the like.
Your net for Schedule C becomes a negative but you have NOT declared gaming
losses in excess of your gaming winnings.
The format of my attachment to Sch C incorporates all losses but only deducts
those equal to the winnings. Likewise for clarity, IRS has me segregating
the W-2G's, 1066's and 1099's in another column as if I only played one (1) hand
in that session. Then my declarations exactly match the w-2's etc. they
received.
With segregating all the top winning hands, it stand to reason that the
summation of the regular play wins will almost always be on the negative side
compared to the play losses.
It is usually the addition of the documented cashback and W-2G's, etc. that
bring the year into the win column.
Although I respect all consultants in this field, my first baptism of fire in
1995 was in speaking to eight (8) reps from this IRS underreporting division
(your case is NOT assigned to one person) and having a core of similar answers
but as many different slants and opinions as the 8 people I talked to. Only
one of the 8 finally diagnosed my particular case correctly and on explanation,
I acted accordingly.
For further clarification, I personally am trying to show as many wins as
possible, pay the Social Security , etc. to boost that figure for the future.
In that light, I do not declare bounceback like sure cashback but any monies
gained from that session do go into my diary as a win.
Many of my business deductions were on suggestions from a sensitive IRS
employee who always seems to say" don't let anyone know I told you this". Whether
or not the carryover from one year to another is allowed or is some cases
overlooked is just part of total disclosure.
It seems that on years where a sizeable profit is declared and taxes paid,
there is not as much scrutiny of how you got there.....if you're paying the
extra, IRS isn't going to argue with you. lol
Anteroz
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