vpFREE2 Forums

Trespass at Casino Montelago

#1

Yes, gambling profit. Cash back etc. is no different than airline miles, hotel points, or any other reward program.

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----- Reply message -----
From: "Bob Bartop" <bobbartop@yahoo.com>
To: <vpFREE@yahoogroups.com>
Subject: [vpFREE] Re: Trespass at Casino Montelago
Date: Mon, Oct 24, 2011 5:25 pm
--- In vpFREE@yahoogroups.com, "rob.singer1111@yahoo.com" <rob.singer1111@...> wrote:

Cashback is not a reportable requirement unless it's accompanied by a 1099--which I've never seen. Been told that in 3 IRS audits.

Isn't PROFIT what's reportable?

[Non-text portions of this message have been removed]

#2

Since I don't haven't had any discussions with the IRS on this matter, whatever I offer up here must be considered "academic".

That said, I find myself hard pressed to imagine an examiner wouldn't view the relationship between cashback and the underlying reported gaming activity to be sufficiently strong to warrant combined reporting.

"Cashback" takes many guises, of course ... but envision making a compelling argument in a case with same day cashback that a $1000 session loss is deductible, but $100 of cashback received same day from that activity is non-reportible.

Your position, Rob, taken to the extreme, argues that if I lose $5000 during a 100% loss rebate promotion, the loss is deductible, but the refund need not be accounted for.

Bear in mind that they key distinction I'm making re your posted comment is the imminent tie between cashback and a reportable activity. None of the other items you note as being similar have as strong a tie to another taxable event (although many may indeed be earned in loose conjunction with activities having tax significance).

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rob.singer1111@yahoo.com wrote:

Yes, gambling profit. Cash back etc. is no different than airline
miles, hotel points, or any other reward program.

#3

I don't want to sound TOO argumentative, but I don't earn airline miles or hotel points for a living. If I did (somehow), I assume they would be taxable profit.

I don't know about how others keep records, but my cashback and freeplay is figured in my net result. I mean, the cashback/freeplay IS my profit. Without cashback/freeplay I would either be a loser or a much smaller winner.

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--- In vpFREE@yahoogroups.com, "rob.singer1111@yahoo.com" <rob.singer1111@...> wrote:

Yes, gambling profit. Cash back etc. is no different than airline miles, hotel points, or any other reward program.

#4

Could it still be taxable if the cash back or rebate or whatever you call it is rendered as limited just to slot play?

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On 10/24/2011 10:36 PM, vp_wiz wrote:

rob.singer1111@yahoo.com <mailto:rob.singer1111%40yahoo.com> wrote:

> Yes, gambling profit. Cash back etc. is no different than airline
> miles, hotel points, or any other reward program.

Since I don't haven't had any discussions with the IRS on this matter, whatever I offer up here must be considered "academic".

That said, I find myself hard pressed to imagine an examiner wouldn't view the relationship between cashback and the underlying reported gaming activity to be sufficiently strong to warrant combined reporting.

"Cashback" takes many guises, of course ... but envision making a compelling argument in a case with same day cashback that a $1000 session loss is deductible, but $100 of cashback received same day from that activity is non-reportible.

Your position, Rob, taken to the extreme, argues that if I lose $5000 during a 100% loss rebate promotion, the loss is deductible, but the refund need not be accounted for.

Bear in mind that they key distinction I'm making re your posted comment is the imminent tie between cashback and a reportable activity. None of the other items you note as being similar have as strong a tie to another taxable event (although many may indeed be earned in loose conjunction with activities having tax significance).

#5

Harry wrote:

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rob.singer1111@yahoo.com wrote:

Yes, gambling profit. Cash back etc. is no different than airline
miles, hotel points, or any other reward program.

Since I don't haven't had any discussions with the IRS on this matter, whatever I offer up here must be considered "academic".

That said, I find myself hard pressed to imagine an examiner wouldn't view the relationship between cashback and the underlying reported gaming activity to be sufficiently strong to warrant combined reporting.

"Cashback" takes many guises, of course ... but envision making a compelling argument in a case with same day cashback that a $1000 session loss is deductible, but $100 of cashback received same day from that activity is non-reportible.

Your position, Rob, taken to the extreme, argues that if I lose $5000 during a 100% loss rebate promotion, the loss is deductible, but the refund need not be accounted for.

Bear in mind that they key distinction I'm making re your posted comment is the imminent tie between cashback and a reportable activity. None of the other items you note as being similar have as strong a tie to another taxable event (although many may indeed be earned in loose conjunction with activities having tax significance).

The last time I was audited, I was told that cash back was taxable.
It was even treated as an indicator of the accuracy of my entire
return. The auditor said he would verify a major item of cash back
and assume everything else in my return was as accurate as it was.