Let's say I decide to try an on line poker site ( along with millions of other Americans) and I have the following record:
Day 1 + $100
Day 2 + $100
Day 3 + $500
Day 4 - $800
Day 5 + $200
I then decide to quit playing. Now it's time to do my taxes and I know that all sources of income are taxable. So I add up my session ( daily) wins and have $900. I put that in the gambling income category. Since I itemize, I want to take a gambling deduction for my losses of $800. What would the IRS do with this deduction? My guess is they would say that on line gambling isn't actually legal and you can't take losses from non legal gambling activities. So should I pay taxes ( federal and state) on $900? In that case I'm paying $288 ( 28% federal and 4% MI) on my win of $100. Makes the England tax rates seem like a bargain.
John Zaroff
Delphi Electronics and Safety
313-996-3682 (w)
313-378-2987 ( Cell)
3133782987@vtext.com ( text page)
ยทยทยท
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