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LVA Question of the Day - 30 AUG 2010

#1

LVA Question of the Day - 30 AUG 2010

Q: I received an invitation to a contest from a casino in
which the top prize is $5,000 in free play. Is that
considered income for tax purposes? Will I be required to
fill out a 1099 tax form if I win?

Read the answer here:

http://www.lasvegasadvisor.com/qod.cfm

<a href="http://www.lasvegasadvisor.com/qod.cfm">
http://www.lasvegasadvisor.com/qod.cfm</a>

NOTE: vpFREE access to the Question of the Day link has
been approved by LVA and expires after the current day
for non-LVA members.

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#2

My impression is that winning free play should not generate a tax form, but any winnings are simply added to you win/loss statement at the end of the year from that casino. As opposed to winning cash, which generates a tax form immediately.

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--- In vpFREE@yahoogroups.com, "vpFREE Administrator" <vpfreeadmin@...> wrote:

LVA Question of the Day - 30 AUG 2010

Q: I received an invitation to a contest from a casino in
which the top prize is $5,000 in free play. Is that
considered income for tax purposes? Will I be required to
fill out a 1099 tax form if I win?

Read the answer here:

http://www.lasvegasadvisor.com/qod.cfm

<a href="http://www.lasvegasadvisor.com/qod.cfm">
http://www.lasvegasadvisor.com/qod.cfm</a>

NOTE: vpFREE access to the Question of the Day link has
been approved by LVA and expires after the current day
for non-LVA members.

*************************************************
This link is posted for informational purposes
and doesn't constitute an endorsement or approval
of the linked article's content by vpFREE. Any
discussion of the article must be done in
accordance with vpFREE's rules and policies.
*************************************************

#3

I agree with the concept on won free play, but figure you will get hit with the prize tax. However, you could perhaps show much of it as a loss after getting your end of the year win/loss figure.

I have also been usually paid in playable casino chips when placing in a casino run BJ tourney with no paper work required..... and Bam, I usually did get the next year tax hit for a prize over $600. Regardless if played I them off or not.
Though the amount arguably would be equal or less than a regular table buy in . Cerainly less than any IRS required taxable recordable amount

I usually have to go the cage and sign with ID for any amount in cash for a slot/vp tourney- even for $50 and less. I do not think this shows up in my yearly won loss statement- only coin in and out on slots/vp, plus table buy ins and estimated won/loss

I do now notice that many casino slot tournies are paying in free play- but it seems mostly in the lower tiers

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--- In vpFREE@yahoogroups.com, "irdd3000" <irdd@...> wrote:

My impression is that winning free play should not generate a tax form, but any winnings are simply added to you win/loss statement at the end of the year from that casino. As opposed to winning cash, which generates a tax form immediately.

--- In vpFREE@yahoogroups.com, "vpFREE Administrator" <vpfreeadmin@> wrote:
>
> LVA Question of the Day - 30 AUG 2010
>
> Q: I received an invitation to a contest from a casino in
> which the top prize is $5,000 in free play. Is that
> considered income for tax purposes? Will I be required to
> fill out a 1099 tax form if I win?
>
> Read the answer here:
>
> http://www.lasvegasadvisor.com/qod.cfm
>
> <a href="http://www.lasvegasadvisor.com/qod.cfm">
> http://www.lasvegasadvisor.com/qod.cfm</a>
>
>
> NOTE: vpFREE access to the Question of the Day link has
> been approved by LVA and expires after the current day
> for non-LVA members.
>
>
> *************************************************
> This link is posted for informational purposes
> and doesn't constitute an endorsement or approval
> of the linked article's content by vpFREE. Any
> discussion of the article must be done in
> accordance with vpFREE's rules and policies.
> *************************************************
>

#4

As I said in my LVA QoD answer, casinos do many different things regarding the tax issues of FP, tournaments, drawings. It is a VERY gray area and many players (and their tax preparers) have to make a decision based on their individual interpretations and the total way they file their taxes. For example, someone filing as a professional might do it differently than a recreational player.

So, just because you think something is "unfair" or that it went down one way at one casino, this doesn't mean that your experience is necessarily typical or "right" for someone else. It may just be your opinion, not an IRS ruling. So I warn others not to take "opinion" posts as "law" in the matter of taxes and gambling.

In my tax book, Marissa and I warn over and over that every person has his own set of facts and circumstances. We do not give definitive "rules" in these gray areas, but give a range of possible ways one might deal with a particular issue. Then you have to use that information to decide - or help your professional preparer decide - how to handle these gray-area items.

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

#5

<<My impression is that winning free play should not generate a tax form, but any winnings are simply added to you win/loss statement at the end of the year from that casino. As opposed to winning cash, which generates a tax form immediately.>>

Sorry, this sounds too logical for casinos or the IRS!!! :slight_smile:

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