On my last trip to Vegas, I was lucky & won a grand prize in a casino
drawing. You earned entries only thru playing thruout the month. I
consider this a gambling win but someone thought it was not. Is this
win consider a gambling win at tax time or not since it was a drawing?
Tax ? On A Casino Drawing
I belive it may depend on how much they value they gift, though I don't know what the
treshold is for reporting. Did you fill out paperwork and provide your SSN in order to
accept the prize? That may be a clue to what you can expect.
I won a drawing a couple years ago where the prize was $1000 cash and a slot machine.
Come tax time, I received a tax form (maybe a 1099-Misc?) in the amount of $1250, so
they obviously valued the slot machine at $250, considered the two separate items (cash
and machine) as one prize entity, and reported the taxes accordingly.
I've heard of people winning cars and receiving these same tax forms at an outrageously
high value, so that the winners had the car appraised and used the lesser, more accurate
value in their own tax returns.
Bettie
···
--- In vpFREE@yahoogroups.com, "akole219" <scanner219@...> wrote:
On my last trip to Vegas, I was lucky & won a grand prize in a casino
drawing. You earned entries only thru playing thruout the month. I
consider this a gambling win but someone thought it was not. Is this
win consider a gambling win at tax time or not since it was a drawing?
It was a car that I won. I did provide my SS# & was told I would get
a 1099 in January. The sticker was $31,500. I did take the cash
option of $26,000. I believe I will have to claim the sticker price
but want to know if this is considered a gambling win that I can use
my losses to offset some of it at tax time.--- In
vpFREE@yahoogroups.com, "bettiepaige21" <bettie@...> wrote:
I belive it may depend on how much they value they gift, though I
don't know what the
treshold is for reporting. Did you fill out paperwork and provide
your SSN in order to
accept the prize? That may be a clue to what you can expect.
I won a drawing a couple years ago where the prize was $1000 cash
and a slot machine.
Come tax time, I received a tax form (maybe a 1099-Misc?) in the
amount of $1250, so
they obviously valued the slot machine at $250, considered the two
separate items (cash
and machine) as one prize entity, and reported the taxes
accordingly.
I've heard of people winning cars and receiving these same tax
forms at an outrageously
high value, so that the winners had the car appraised and used the
lesser, more accurate
value in their own tax returns.
Bettie
>
> On my last trip to Vegas, I was lucky & won a grand prize in a
casino
> drawing. You earned entries only thru playing thruout the month.
I
> consider this a gambling win but someone thought it was not. Is
this
> win consider a gambling win at tax time or not since it was a
drawing?
···
--- In vpFREE@yahoogroups.com, "akole219" <scanner219@> wrote:
>
<<It was a car that I won. I did provide my SS# & was told I would get a
1099 in January. The sticker was $31,500. I did take the cash option of
$26,000. I believe I will have to claim the sticker price but want to know
if this is considered a gambling win that I can use my losses to offset some
of it at tax time.>>
You only have to claim the $26k. If they 1099 you for more you can make an
adjustment.
If you earned tickets to the drawing by gambling you have a strong case that
you can deduct gambling losses. For a 1099 win you may have more options
(deducting costs related to producing that income).
You would be best off consulting a gambling tax specialist such as Marissa
Chien.
Cogno
<<<<It was a car that I won. I did provide my SS# & was told I would get a
1099 in January. The sticker was $31,500. I did take the cash option of
$26,000. I believe I will have to claim the sticker price but want to know
if this is considered a gambling win that I can use my losses to offset some
of it at tax time.>>
<<You only have to claim the $26k. If they 1099 you for more you can make an
adjustment.>>
Correct. I won a car once, took it, and then sold it back to the dealer. My accountant put these difference figures down on Schedule C so I had to pay tax only on the amount I actually realized from the sale, which was a lower amount than on the 1099. There probably are other ways it could be done. You will need to wait until you get the 1099 to see what figure they put on that. If it is the larger one, there are ways to report this, but for sure you have to show both figures somewhere on your return.
<<If you earned tickets to the drawing by gambling you have a strong case that
you can deduct gambling losses. For a 1099 win you may have more options
(deducting costs related to producing that income). You would be best off consulting a gambling tax specialist such as Marissa Chien.>>
Good advice.
The following comes from "Tax Help for the Frugal Gambler":
"The question for gamblers is whether they can add casino drawing prizes and tournament wins to their "regular" casino wins. This is not clearly stated by the IRS, but most gamblers put these in their log just as they do for all their gambling wins. And most tax preparers recommend that you lump them all together, IF they're directly related to gambling. This becomes an important issue if you itemize on Schedule A. If all kinds of gambling wins are lumped together, then perhaps you'll be able to offset some (or all) of your drawing winnings by taking your gambling losses as a deduction, up to the amount of your wins. Again, you need to talk to a professional tax preparer who can analyze the details of your personal situation."
···
________________________________________
Jean $�ott
"FRUGAL VIDEO POKER" - Pre-pub
orders for this new book now taken at
http://www.FrugalGambler.biz