it really depends on your account balances
Ex)
FT Account balance frozen.........3k
Full Tilt 2011 Profit..................10k
I think this is a pretty clear cut situation where it is likely you could get away with putting down $7k income as you don't have constructive receipt of the $3k.
On the other hand, if you had frozen bankroll > FT 2011 profit, it's going to be a lot more difficult to deal with (I believe this is the OPs situation). Some of the bankroll will be 2010 income you already paid taxes on, some will be 2011 income you may/may not have had constructive receipt. For the excess, you definitely cannot take the casualty loss YET until this mess is settled by a payment to you from FT/DoJ
Read this:
http://www.taxabletalk.com/2011/12/2...ll-tilt-poker/
and this thread:
http://forumserver.twoplustwo.com/57...t-etc-1062603/
I don't want to put words into Russ' mouth, but basically what he said is you don't have to count 2011 income you didn't receive (still frozen), count all 2011 income you DID receive, and you can't do anything about casualty losses yet (money earned prior to 2011, but was still in your FT bankroll on 04/15/11.
For amateurs, you would put $XXXX into gambling winnings and then deduct your
gambling losses if applicable. The loss of your bankroll does not count towards gambling losses.
Disclaimer: I am not providing tax advice
Last edited by LT22; 02-01-2012 at 06:28 PM.