im a part timer and been having a pretty good year at the 50c level
and am thinking of making the jump to $1 but trying to figure the
risk. have had several RFs and i usually take the full amount of my
taxable jackpots so i can earn interest on the money until tax time
rolls around and i also have it available in case i hit a really bad
streak of luck. since i am ahead for the year, any losses i have from
here out are deductable from my wins so essentially my tax rate (28%)
gets multiplied by my loss and i have really lost that much less
because it is that much less i will owe in taxes, right? and
similarly all further wins will be taxed at the same 28%.
so really rather than playing a $1 machine when it comes to figuring
my risk for my bankroll, is it correct to assume i am actually
playing a $1x(1.00-0.28)=$0.72 machine? and then on january 1, when
i am back to zero tax liability for the year from gambling, do i go
back to figuring my risk based on the full amount of the machine
until i am significantly ahead for the year again?
any input would be appreciated. thanks