I think one thing that confuses alot of people is that if you are a
losing gamer and most people are, then the comps you are getting are
simply a rebate. If you paid cash for a new GMC truck and GM sent you
a rebate check for $1,400 that money would not be considered taxable.
It is a rebate or a reduction in the cost of the price that you paid
and your original purchase was all in taxable dollars so it's not like
you didn't pay taxes on that money to begin with because you did.
Taxes and comps
One more thought, obviously there will be some differences for people
who are gaming for a living. But remember such individuals are a very
small percentage even on this forum and like a needle in a haystack
compared to the general gaming population as a whole. For most people
it just amounts to a reduction in the cost of what they were getting.
I think one thing that confuses alot of people is that if you are a
losing gamer and most people are, then the comps you are getting are
simply a rebate. If you paid cash for a new GMC truck and GM sent
you
a rebate check for $1,400 that money would not be considered
taxable.
It is a rebate or a reduction in the cost of the price that you paid
and your original purchase was all in taxable dollars so it's not
like
···
--- In vpFREE@yahoogroups.com, "markhaslem" <markhaslem@...> wrote:
you didn't pay taxes on that money to begin with because you did.
What about slot club cash? I am well aware that all winnings are taxable, w-2g form or not, but has any decision come thru about slot club cash? Also, am aware that losses may be deducted to extent of wins. Perhaps th ebest bet is to take comps where you have a comp or cash option.
markhaslem <markhaslem@yahoo.com> wrote: One more thought, obviously there will be some differences for people
who are gaming for a living. But remember such individuals are a very
small percentage even on this forum and like a needle in a haystack
compared to the general gaming population as a whole. For most people
it just amounts to a reduction in the cost of what they were getting.
>
> I think one thing that confuses alot of people is that if you are a
> losing gamer and most people are, then the comps you are getting are
> simply a rebate. If you paid cash for a new GMC truck and GM sent
you
> a rebate check for $1,400 that money would not be considered
taxable.
> It is a rebate or a reduction in the cost of the price that you paid
> and your original purchase was all in taxable dollars so it's not
like
···
--- In vpFREE@yahoogroups.com, "markhaslem" <markhaslem@...> wrote:
> you didn't pay taxes on that money to begin with because you did.
>
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[Non-text portions of this message have been removed]
<<What about slot club cash? I am well aware that all winnings are taxable, w-2g form or not, but has any decision come thru about slot club cash? Also, am aware that losses may be deducted to extent of wins. Perhaps th ebest bet is to take comps where you have a comp or cash option.>>
In Chapter 3 - "Special Gambling Situations" - in the new much expanded tax book coming out in early December ("Tax Help for the Gambler" is the new title. We left out the word "frugal" because many thought the book only related to low rollers.) are these excerpts:
JEAN: "Related to comps, in that the casino often uses it to reward their players club members, cashback is a popular gambler benefit about which the IRS has yet to make a ruling, and again there's no consensus on how to treat it, even among tax experts. ... many players believe that cashback falls under the same category as comps, a reward from the casino that's not gambling income. Others feel it's more like a rebate of some of your losses and should reduce the total losses that you report. This is another gray area and you need to discuss your particular situation with your tax preparer.
MARISSA: "I tell my clients that cashback is gambling income, whereas free buffets aren't. The standard I apply is that cashback is statutory, while a comp from the slot club booth or your host, such as the free buffet, is discretionary. ... The biggest argument as to why cashback is income is that if you're 86'ed (barred) from a Nevada casino, Nevada Gaming Control has ruled time and time again that you're entitled to the cashback earned, whereas comps in your comp account are forfeited, since they're discretionary."
We discuss this subject more at length in this chapter, plus the many issues of free play, tournaments, drawings, and group play.
···
________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Does this work differently in New Jersey, where player's cant be barred for having good gambling skills?
Ned C.
The Wild Joker
···
Jean Scott <queenofcomps@cox.net> wrote:
<<What about slot club cash? I am well aware that all winnings are taxable,
w-2g form or not, but has any decision come thru about slot club cash?
Also, am aware that losses may be deducted to extent of wins. Perhaps th
ebest bet is to take comps where you have a comp or cash option.>>
In Chapter 3 - "Special Gambling Situations" - in the new much expanded tax
book coming out in early December ("Tax Help for the Gambler" is the new
title. We left out the word "frugal" because many thought the book only
related to low rollers.) are these excerpts:
JEAN: "Related to comps, in that the casino often uses it to reward their
players club members, cashback is a popular gambler benefit about which the
IRS has yet to make a ruling, and again there's no consensus on how to treat
it, even among tax experts. ... many players believe that cashback falls
under the same category as comps, a reward from the casino that's not
gambling income. Others feel it's more like a rebate of some of your losses
and should reduce the total losses that you report. This is another gray
area and you need to discuss your particular situation with your tax
preparer.
MARISSA: "I tell my clients that cashback is gambling income, whereas free
buffets aren't. The standard I apply is that cashback is statutory, while a
comp from the slot club booth or your host, such as the free buffet, is
discretionary. ... The biggest argument as to why cashback is income is that
if you're 86'ed (barred) from a Nevada casino, Nevada Gaming Control has
ruled time and time again that you're entitled to the cashback earned,
whereas comps in your comp account are forfeited, since they're
discretionary."
We discuss this subject more at length in this chapter, plus the many issues
of free play, tournaments, drawings, and group play.
________________
Jean $¢ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
---------------------------------
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[Non-text portions of this message have been removed]
<<Does this work differently in New Jersey, where player's cant be barred for having good gambling skills?
Ned C.
The Wild Joker
He was referring to something in the tax book I quoted.
<<MARISSA: "I tell my clients that cashback is gambling income, whereas free
buffets aren't. The standard I apply is that cashback is statutory, while a
comp from the slot club booth or your host, such as the free buffet, is
discretionary. ... The biggest argument as to why cashback is income is that
if you're 86'ed (barred) from a Nevada casino, Nevada Gaming Control has
ruled time and time again that you're entitled to the cashback earned,
whereas comps in your comp account are forfeited, since they're
discretionary.">>
I had a private note after this thread from someone who had personal experience with this in NJ. This is what he said:
<<Unfortunately I can tell you first hand that this argument doesn't hold water anymore in NJ. Three players were denied their earned cashback, One sued and lost and now is seeking action from the CCC, but was told they have no jurisdiction. I would therefore argue that CB earned in NJ is potentially in the same category as the comps that Marissa refers to.>>
Has anyone else seen this to be true?
···
________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.