Hey to mods, sorry if this is wrong spot to post but idk where else on 2+2 this would get a response. Some of the legislation forums get almost no post action.

Ok so I’ve been very fortunate this year won two semi big field size live mtts. I left over $2k in tips total. Can I write that off on my taxes for the year as a gambling expense per se. I’m not a pro and have almost no shot to file as one obviously as I have a full time job even though In says I do act like a pro gambler in ways.

I’ve wagered more money than I’ve made this year on horse racing (I’m profitable also) and have what made maybe like over 90k in mtts with a total buyin amount of $20-25k if you include online.

I really wanna write off those tips if possible. I would have left less if I knew that these amounts were deductible as I’m going to get tagged heavy with taxes on winnings. Thanks for any thoughts and sorry to mods if this is wrong place to post.

My understanding is that you may not write off the tips unless you are a professional as these would be expenses related to gambling, instead of direct gambling losses. Non-professionals may only deduct gambling losses against gambling gains and may not claim a net loss, and cannot deduct associated expenses. I am a lawyer, but not a tax lawyer, so I would recommend you get the advice from a knowledgeable tax professional. Please make sure you have documented proof of all the losses you are going to claim to offset the wins -- keep tournament buy in tickets, racing tickets, and a detailed log of all cash game sessions (and any other gambling loss you want to include) as claiming gambling losses to offset gains will likely substantially increase your chance for audit.

I have also had good luck on and off and am not a professional. My accountant gave me full details of what I can and cannot deduct up to the full amount declared on my W-2Gs. As states can be different, I would not accept forum advice and invest in the services of a good CPA. I am going to Nassau this December and just about everything can be expensed against my w2G winnings for 2023.

Something I have trouble with- I played many video poker sessions and lost money in vegas. How do they take my word? I have kept info and plan to create an excel sheet with the info. Stuff like time, casino, game played and win/loss for the video poker session.

How can people not just throw phony numbers and write off much more.

Good thing for me- I’ve kept ticket losses from horse racing at the track, sports betting tickets losses for proof, and other forms like mtt buyin receipts.

I just find it odd. Can’t I just say I lost money playing cash over what I actually lost and write that off in a phoney manner. How can they check that I won or lost a certain amount from a cash game table?

I’m not saying I’m going to do this but I find it goofy that they can expect accurate info from a gambler in spots the irs can’t really audit.

I’ve kept really solid records of my wins / losses thankfully. It’s kinda annoying bc I want to write off a ton of losses as right now with poker and horses- I have 70k in profit from tourny poker and maybe 20-50k in horse betting (I hit a big Kentucky derby day for a $50k profit) and have since punted a bit but still most of my horse gains are in tact.

Those are good questions. I would talk to a specializd accountant, as the IRS probably have some methodology in p;ace. But I will note that most people playing a lot of video poker ar enot going to be showing a profit.

I have been filing a Form C as a Professional for 17 years. There are many years where I have made more money working as a consultant doing forensic accounting. In fact some years I have losses from the Form C. Just saying it is possible to be able to file as a Professional Poker Player while still doing work (as long as its not a full time job).

As for deductions, professionally you can deduct any type of travel expenses (Car, hotel, etc.). But I do not deduct meal expenses (you can if you eat with another poker player and discuss poker - but I just stopped filing because I didn't want to have to justify it especially if we didn't discuss poker).

As a professional I can deduct tips given after cashing. And tips for hotel stays. But I have no idea how that could be applied as a non-professional. My opinion is that it should be allowed (because it is specifically deducted from the winnings) but I doubt you would have a chance vs. an audit unless you got a receipt for it. In theory if you received a check for your winning total, a copy of that could be used as your tournament winnings.

In terms of cash games, as a professional I cannot count overall losses in a given year. Those losses can't be applied to say tournament winnings. But I do have to count winnings. In theory I could lie about it but I choose not to. The other disadvantage is that normally in other lines of investment/work you can apply losses from one year to future years (up to three) of income. But because the US Government isn't willing to trust cash game numbers, it just doesn't apply here. I've wondered about just doing it anyway in an honest way, but I basically haven't, and I have stopped playing cash games for the most part.

As for winning or losing money on video poker machines it is possible that the Casino could have a record of your total losses because you have to swipe your membership card at the machine. I would ask them, and if they do keep track (which as a computer programmer/system designer I would say is extremely likely) then just be honest about your total losses on your spreadsheet and that should be allowable. During an audit the government would have the ability to get your total losses from the casino.

I believe if you do not declare yourself a professional poker player that you can't deduct losses from tournaments against your other income for the year. And I also believe that you can't apply tournament losses from a prior year to winnings for the current year. But I would check with an Accountant who knows about gambling stuff.