I have filed as a professional gambler for many years. This is the first year for the Qualified Business Income deduction. TurboTax asks if a)this business is operated in USA and b)this income is not treated as wages. I definitely answer Yes to a) and I believe Yes for b) as well.
Anyone have relevant knowledge for the QBI deduction for a professional gambler?
G’luck all,
Gamb00ler
I will be doing the same. I can see no reason why the QBI deduction would not apply to a self-employed professional gambler. Another special tax break for those who do not work for wages! Not quite as good as the carried interest tax break for the hedge fund guys. My gambling profits are so low now it won’t make much difference. You will get an additional deduction equal to 20% of your net profit.
I feel sorry for the non-professional gamblers with W-2Gs because they will be paying a lot more this year with the big increase in the standard deduction if they were including losses as an itemized deduction.
You may find this useful. Note particularly the section under
Also note near the end the third paragraph above
which clarifies “reputation or skill”
https://www.journalofaccountancy.com/issues/2019/feb/irs-sec-199a-qbi-deduction.html
In my opinion if gambling is eligible, it is only because they didn’t think about it when they were composing the exclusion list. Celebrity poker players might be in an awkward spot because endorsements are not a preferred income source for this benefit.
Thanks for the link to that article.
I’ve claimed the deduction because TurboTax suggested it.
mile_5280 wrote :
You may find this useful. Note particularly the section under
Also note near the end the third paragraph above
which clarifies “reputation or skill”
https://www.journalofaccountancy.com/issues/2019/feb/irs-sec-199a-qbi-deduction.html
In my opinion if gambling is eligible, it is only because they didn’t think about it when they were composing the exclusion list. Celebrity poker players might be in an awkward spot because endorsements are not a preferred income source for this benefit.