Has anyone had any IRS problems with including 1099 income from drawings and slot tournaments with W-2G income and deducting gambling losses for both types of income?
Thanks,
Chris
What about 1099-MISC Gambling Income
My CPA reports them separately because the 1099 misc winnings are deductible only after they exceed a certain percent of your income.
I don't consider a 1099 win a gambling win, and I don't think the IRS does either.
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--- In vpFREE@yahoogroups.com, "kcace1024" <cy4873@...> wrote:
Has anyone had any IRS problems with including 1099 income from drawings and slot tournaments with W-2G income and deducting gambling losses for both types of income?
Thanks,
Chris
My CPA reports them separately because the 1099 misc winnings are >deductible only after they exceed a certain percent of your income.
I don't consider a 1099 win a gambling win, and I don't think the IRS >does either.
Fortunately, that is not the case. You can include 1099 wins in your gambling wins, as long as certain conditions are met.
For example, if the only way one can win a drawing is to participate in a gambling activity (e.g. earn points playing slots or VP which will give you drawing entries), then the 1099 can be included in gambling wins and be offset by gambling losses.
I have done so for the past number of years. My accountant has always included a note of explanation as to why they are included. So far, so good...no questions from the IRS and no audits.
Don the Dentist
<<I don't consider a 1099 win a gambling win, and I don't think the IRS does either. >>
Many of us DO count our 1099s as part of our gambling wins because they are for drawings or tournaments that are directly dependent or related to our gambling. Sometimes the IRS will send a letter audit about this, but almost always are satisfied when you tell them what I put in this first sentence.
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________________
Jean $�ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://lasvegasadvisor.com/blogs/jscott/
I've been using Turbo Tax to prepare my returns for the past several years.
When entering your 1099 income, Turbo Tax asks you if the 1099's are for
winnings. If you answer "yes," Turbo Tax automatically takes you to a page
where you can enter the amount of your gambling losses to offset these 1099
winnings.
If Turbo Tax considers a 1099 win a gambling win, then I think the IRS does,
too.
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On Mon, Mar 30, 2009 at 9:59 AM, jpq321 <jpquarz@cox.net> wrote:
My CPA reports them separately because the 1099 misc winnings are
deductible only after they exceed a certain percent of your income.
I don't consider a 1099 win a gambling win, and I don't think the IRS does
either.
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