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Reporting taxes on backed poker wins

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11-15-2017 , 01:41 PM

gobig

stranger

Join Date: Jul 2011 Posts: 12

I am sure this kind of question has been answered before, but I can't find it, so here goes.

Hypothetical: I win $20K profit in a live poker tournament in which I was backed for 20%, meaning I need to pay my backer $4K. The casino issued me a W-2G (in my name only) for $20K. I am going to send my backer his $4K and a 1099-MISC reflecting this payment to him.

My question is: on my tax return, do I list a $20K win and then a separate $4K gambling-loss deduction, or do I just report a win of $16K with no deduction?

Thanks for any assistance on this.

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11-15-2017 , 02:07 PM

gobig

stranger

Join Date: Jul 2011 Posts: 12

Also, assume this is my only gambling activity for the year, and that I do not file as a professional gambler.

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11-15-2017 , 05:54 PM

Lego05

Carpal \'Tunnel

Join Date: Mar 2006 Posts: 24,904

You live in the U.S.?

You might want to check this forum:

https://forumserver.twoplustwo.com/5...ted-rich-muny/

And this thread:

https://forumserver.twoplustwo.com/5...-poker-740589/

But I would report it as a $16,000 win and no deduction. And I'd include an attachment with my tax return explaining what happened.

*DISCLAIMER: THE ABOVE IS NEITHER LEGAL NOR ACCOUNTING ADVICE AND IS NOT TO BE CONSTRUED AS SUCH. YOU COULD CONSULT AN ATTORNEY OR ACCOUNTANT IN YOUR JURISDICTION*

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11-15-2017 , 07:15 PM

gobig

stranger

Join Date: Jul 2011 Posts: 12

Yes, I live in the U.S.

This is very helpful. Thanks very much.

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