Preliminary reports seem to say gambling losses as itemized deductions would be gone in the new tax plan. This probably wouldn't effect Schedule c professional gamblers (in my opinion), but could hurt folks who say won $5000 in w2gs but lost $7000 gambling.
No way to know for sure until we see the final tax law and schedules. Also perhaps the IRS will be using the daily wins/losses more fairly.....?
Deduction of gambling losses (as an offset to reported winnings) hasn’t been a focus of the proposed code revisions this year.
What is specifically eliminated is deduction of related expenses related to “hobbyist” play.
I find this a little confusing because such expenses have never been deductible by recreational gamblers; only qualified “professionals” filing a Sch C could take the deduction.
Bottom line, I see no impact on recreational players who deduct gambling losses via Sch A, to the extent of reported winnings. And the reference to “hobbyists” appears to me not to restrict expense deductions by Sch C “pro” filers.
misscraps wrote :
Preliminary reports seem to say gambling losses as itemized deductions would be gone in the new tax plan.
If what I am reading is correct recreational gamblers could be hurt to the extent they are hit with state taxes on W2G? Some states are a real pain.
C
Sent from my iPad
On Nov 4, 2017, at 3:49 AM, harry.por…@…net [vpFREE] <vpF…@…com> wrote:
Deduction of gambling losses (as an offset to reported winnings) hasn’t been a focus of the proposed code revisions this year.
What is specifically eliminated is deduction of related expenses related to “hobbyist” play.
I find this a little confusing because such expenses have never been deductible by recreational gamblers; only qualified “professionals” filing a Sch C could take the deduction.
Bottom line, I see no impact on recreational players who deduct gambling losses via Sch A, to the extent of reported winnings. And the reference to “hobbyists” appears to me not to restrict expense deductions by Sch C “pro” filers.
misscraps wrote :
Preliminary reports seem to say gambling losses as itemized deductions would be gone in the new tax plan.
The odds of these guys passing something soon are limited. I say it is important to continue keeping loss records in your WinLoss app or however you do it. It may not really be decided for some time and then there will be the issue of how to interpret the actual law which could take years as history has shown.
Like Commandant Klink in Hogan’s Heroes, until the House and Senate do their things (and who knows how long that will take and what they will be doing?), “We know nothing”. LOL.
… bl
That was actually Sergeant Hans Schultz who uttered the “I know nothing” phrase.
That was actually Sergeant Hans Schultz who uttered the “I know nothing” phrase.
Oh, well. I tried to insert a little humor. I must have had a senior moment. (hmmm. I seem to be having more and more of those lately.)
… bl