I am aware that Schedule C professional gamblers are not allowed to claim a loss, but I vaguely recall reading somewhere (likely on this message board) that carryover losses can be claimed. I’d welcome input from anyone who has experience with this. Thanks in advance.
Sch C Filers
correna2 wrote: “I vaguely recall reading somewhere (likely on this message board) that carryover losses can be claimed”
No, you can carryover investment loss, but not gambling losses. So gambling when the N0 is more than a year is pretty much a folly.
http://pokerfuse.com/features/in-depth/taxation-gambling-professional-versus-amateur-gambler/
nightoftheiguana2000@yahoo.com wrote:
correna2 wrote: "I vaguely recall reading somewhere (likely on this message board) that carryover losses can be claimed"
No, you can carryover investment loss, but not gambling losses. So gambling when the N0 is more than a year is pretty much a folly.
http://pokerfuse.com/features/in-depth/taxation-gambling-professional-versus-amateur-gambler/
I believe losses on schedule C are neither gambling nor investment,
but business losses, which can be carried forward.
—In vpF…@…com, <007@…> wrote :
I believe losses on schedule C are neither gambling nor investment,
but business losses, which can be carried forward.
NOTI is correct. When your Sch C business is gambling, losses are not treated the same as Sch C losses from other kinds of business. Sch C losses from a gambling business can’t be used to offset other income and can’t be carried forward to other tax years.
–Dunbar
---In vpFREE@yahoogroups.com, <007@...> wrote :
I believe losses on schedule C are neither gambling nor investment, but business losses, which can be carried forward.NOTI is correct. When your Sch C business is gambling, losses are not treated the same as Sch C losses from other kinds of business. Sch C losses from a gambling business can't be used to offset other income and can't be carried forward to other tax years.
--Dunbar
You might be right, technically, for all I know, but I've done it
before and gotten a refund from a NOL carryback. I'll hope that
what's discussed on vpFree stays on vpFree.
From: 007 <…@…com>
I’ll hope that what’s discussed on vpFree stays on vpFree.
Oh yes, absolutely.
You don’t have to worry about that at all.
'Cause I’m sure the NSA wouldn’t bother monitoring emails or web postings or forum discussions or anything.
Guru
P.S. Your left shoelace is untied ; )
Certainly the game is rigged. Don’t let that stop you; if you don’t bet, you can’t win. -Lazarus Long
In theory, there is no difference between theory and practice. But, in practice, there is. -Yogi Berra
There
is no such thing as luck. There is only adequate or inadequate preparation to cope with a statistical universe. -Robert Heinlein
<<I believe losses on schedule C are neither gambling nor investment,
but business losses, which can be carried forward.>>
This is incorrect. From Tax Help for Gamblers:
“You will not be entitled to all of the Schedule C advantages of taxpayers involved in businesses other than gambling. Schedule C filers normally may carry forward their losses. They can also offset losses against other income. Because IRC 165(d), which we quoted on page 44, takes precedence in determining gambling losses, the professional gambler is at a disadvantage when compared to other businesses. If you sell Amway and fail, you can use the net loss to offset other income. This is not permitted for any gambler, including professionals. As it has in many previous cases, the court ruled again, in Praytor v. Commissioner (2000), that claimed losses, even as a professional, may not exceed gains. That pesky Section 165(d) of the tax code takes precedence.”
There IS one new wrinkle in this subject for those who file as professional gamblers. In January of 2011, due to the decision of the Tax Court in Mayo 136 T.C. 81 (2011), the IRS has appeared to acquiesce to the Tax Court in allowing the deduction of non-gambling expenses (like travel, tips, Internet and cell phone usage, etc.) beyond gambling gains. This was a major change of direction by the IRS as they had long held that these non-gambling expenses of professional gamblers were disallowed by 165(d). Now these gamblers can use these deductions to offset non-gambling income, even when it results in a net operating loss. And just like other businesses, that loss can be carried back or forward to other tax years. http://ustaxcourt.gov/InOpHistoric/Mayo.TC.WPD.pdf
One added note: Just because one person has “gotten away” with something on their income tax return – something that is obviously against the clearly stated rules and regulations – that is not information that others should use as a reason to do the same. And even in gray areas where the rules do not cover some areas or they can be interpreted in various ways, one should tread carefully. Each person’s circumstances are different and you may not be aware of all the details of another person’s situation.
···
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
From: 007
Sent: Monday, March 17, 2014 4:09 PM
To: vpF…@…com
Subject: [SPAM]Re: [vpFREE] Re: Sch C Filers
nightoftheiguana2…@…com wrote:
correna2 wrote: “I vaguely recall reading somewhere (likely on this message board) that carryover losses can be claimed”