vpFREE2 Forums

Tax Info Needed

#1

I am currently involved in a dispute with the IRS over my previous
two years of tax returns. I filed separate schedule C's for my wife
and myself to report gambling winnings. The IRS claims that all
gambling winnings should be reported on form 1040 and losses deducted
on schedule A. This will result in a substantial increase in tax
liability for these and future years. In 2003, we had a tough year
and narrowly escaped with a profit, leaving us with the possibility
of owing taxes well in excess of our win for the year.

To complicate matters, I own and operate my own business. I filed
yet another schedule C for the business, thereby giving the IRS fuel
for their argument that gambling for me must be merely a hobby. In
2003, I logged over 1600 hours of actual playing time in casinos in
addition to running a business (I've been busy). I certainly feel
that this kind of time investment would be considered more than a
hobby. My wife does not have a "real" job besides her video poker
play.

Can anyone cite any specific cases or codes which might give me a
solid argument that I am entitled to file schedule C.

Thanks in advance for your response,

Raimo Hanniken

#2

I am currently involved in a dispute with the IRS over my previous
two years of tax returns. I filed separate schedule C's for my

wife

and myself to report gambling winnings. The IRS claims that all
gambling winnings should be reported on form 1040 and losses

deducted

on schedule A. This will result in a substantial increase in tax
liability for these and future years. In 2003, we had a tough year
and narrowly escaped with a profit, leaving us with the possibility
of owing taxes well in excess of our win for the year.

To complicate matters, I own and operate my own business. I filed
yet another schedule C for the business, thereby giving the IRS

fuel

for their argument that gambling for me must be merely a hobby. In
2003, I logged over 1600 hours of actual playing time in casinos in
addition to running a business (I've been busy). I certainly feel
that this kind of time investment would be considered more than a
hobby. My wife does not have a "real" job besides her video poker
play.

Can anyone cite any specific cases or codes which might give me a
solid argument that I am entitled to file schedule C.

Thanks in advance for your response,

Raimo Hanniken

You have none, sorry, go to ustaxcourt.gov , search
using "Professional gambler" or "gambling losses" in search,
you find cases like yours where pepole with full time jobs or
selfemployed were denied & why.

Tax Notes is great for reaserch also,

Since you can deduct verefiable losses against gambling winnings, it
should not cause an increase in tax unless you are tryng to
deduct "other expenses" you incured in creating your income such as
gas to go to casinos , rooms , food etc,
Use "hobby losses" "self employed" in your search, there you find the
7 standards you need to meet in order to declare your hobby a bizness

BUT, best thing to do is get a good tax person to get advice,

M J

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--- In vpFREE@yahoogroups.com, "rhanniken" <rhanniken@h...> wrote:

#3

<<BUT, best thing to do is get a good tax person to get advice>>

I suggest Marissa Chien, co-author of "Tax Help for the Frugal Gambler." She is a tax preparer and a gambler herself and lives in Las Vegas.

Marissa Chien
advantagetaxplus@aol.com
Phone: 702-207-1040

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