writing off gambling losses - Sports Betting - SportsBetting Strategy and Forum

Two Plus Two Forums Sports and Games Sports Betting

writing off gambling losses

Post Reply Subscribe

...

11-23-2012 , 01:10 AM

Jkpoker10

veteran

Join Date: May 2012 Posts: 3,088

Hey can I write off gambling losses in the US if i bet on 5dimes? I've lost a little this year betting sports and just wondering if this is a good idea? Ive won money in the past, however very small sums but didn't report this to the IRS obviously.

Quote

11-23-2012 , 01:12 AM

ALRounder

centurion

Join Date: Oct 2010 Posts: 173

The only way you can "write off" gambling expenses is if you file professional gambler as your occupation

Quote

11-23-2012 , 02:50 AM

PropPlayer

Sports Betting Mod

Join Date: Oct 2005 Posts: 3,798

On Turbo tax there is a spot for gambling wins and gambling losses. I have no idea how this works but it appears to maybe change standard deductions. Last year I was just playing around to see how it worked. No gambling income entered but a bunch of other income including foreign capital gains and foreign self employment. I then entered 300,000 gambling win / 300,000 gambling loss. The amount of tax owed increased despite being net zero.

The way I understand it though is you can deduct losses but only off of wins. How that changes other deductions not sure. If you're a professional gambler, you can file on schedule C and deduct business expenses too.

Quote

11-23-2012 , 03:20 AM

Donkson

old hand

Join Date: Jul 2009 Posts: 1,583

Last edited by Donkson; 11-23-2012 at 03:26 AM.

Quote

11-23-2012 , 04:21 AM

CHRONICFEVER

Goes hard in the paint

Join Date: Aug 2008 Posts: 13,506

Quote:

Originally Posted by PropPlayer

Havent done this in a while but i think The amount of tax increased because it assumed that you were itemizing and you no longer qualified for the standard deduction. By adding 300k and deducting 300k you lost your standard deduction so 0$ deducted from income opposed to 5800 or whatever it is if u are single.
But yeah like others said could only deduct gambling losses up to your wins on sch A and you have to make sure your itemized deduction is higher than standard else it makes no sense.
Sch c pro gambler is where its at

Last edited by CHRONICFEVER; 11-23-2012 at 04:28 AM.

Quote

11-23-2012 , 03:26 PM

wiper

still catching up

Join Date: Oct 2005 Posts: 42,642

man i loved when elaine would wear those glasses. nomnomnom

Quote

11-23-2012 , 04:53 PM

TheWalk

old hand

Join Date: Feb 2007 Posts: 1,599

Quote:

Originally Posted by ALRounder

The only way you can "write off" gambling expenses is if you file professional gambler as your occupation

this is wildly incorrect

Quote

11-23-2012 , 05:02 PM

'kljhg

banned

Join Date: May 2012 Posts: 3,398

Quote

11-23-2012 , 09:12 PM

wiper

still catching up

Join Date: Oct 2005 Posts: 42,642

^^^

ABPOIUAWRSPOTINABPOIADNFB\!

Quote

11-24-2012 , 12:35 AM

#10

Malachii

Pooh-Bah

Join Date: Feb 2005 Posts: 4,074

Quote:

This is correct. You can write off losses to the extent of your wins but you must itemize deductions in order to do this.

BTW, is there a threshold where Vegas Sportsbooks issue 1099s for Sportsbetting winnings?

Quote

11-24-2012 , 12:47 AM

#11

wiper

still catching up

Join Date: Oct 2005 Posts: 42,642

Last edited by wiper; 11-24-2012 at 12:47 AM. Reason: no glasses

Quote

11-24-2012 , 06:13 AM

#12

Donkson

old hand

Join Date: Jul 2009 Posts: 1,583

Quote

11-24-2012 , 07:23 AM

#13

CHRONICFEVER

Goes hard in the paint

Join Date: Aug 2008 Posts: 13,506

Quote:

Originally Posted by Malachii

Curious about this as well

Quote

12-03-2012 , 01:50 AM

#14

Rick_Da_Ruler

stranger

Join Date: Dec 2012 Posts: 7

Quote:

Originally Posted by ALRounder

The only way you can "write off" gambling expenses is if you file professional gambler as your occupation

Not true. It doesn't have to be your occupation on your tax form. Furthermore your occupation on that form has absolutely no bearing on any part of your tax return. You can write down you're an astronaut and it would make absolutely no difference.

With regards to the OP's question.

You can only write off gambling losses to the extent that you have gambling winnings, not in excess of...

Quote

12-04-2012 , 11:00 AM

#15

RainierWolfcastle

adept

Join Date: Jul 2009 Posts: 1,151

Quote:

Originally Posted by Rick_Da_Ruler

Professional gamblers income is their net gambling winnings and they can write off gambling related expenses.

A recreational gambler has to differentiate between wins and losses: wins qualify as income while losses can only be counted as an itemized deduction.

It absolutely makes a difference if you are filing as a professional gambler or not.

Quote

12-06-2012 , 07:04 PM

#16

NajdorfDefense

Carpal \'Tunnel

Join Date: Feb 2003 Posts: 17,676

ZEE GOGGLES ZEY DO NOTHING! NOTHING!!!

Quote

12-07-2012 , 12:09 AM

#17

ccc3ccc3ccc3

centurion

Join Date: Dec 2012 Posts: 146

Quote:

Originally Posted by Donkson

Took some employees to Starbucks for breakfast this week and smartass kid at the register hands me the receipt and says "here's your receipt so you can write it off". I envisioned Kramer immediately. True story.

Quote

12-07-2012 , 12:10 AM

#18

ccc3ccc3ccc3

centurion

Join Date: Dec 2012 Posts: 146

Quote:

Originally Posted by Rick_Da_Ruler

Read about Schedule C and get back to us.

Quote

12-18-2012 , 09:29 AM

#19

trixtrix

adept

Join Date: Oct 2006 Posts: 863

Quote:

Originally Posted by PropPlayer

that's correct, it's a tricky 22 if you have a side 9-5er, b/c you total adjusted income (which is income rate they use to calculate your tax percentage)= all w-2s+ all gambling winnings (when they're of significance.)
but then after they calculated your effective tax rate you can now go back and write off your gambling losses, so even if you have an even year in gambling (say you won 100k and lost 100k) you including this in you income tax will def increase say if your 5-9er is a fry cook.

Quote

Post Reply Subscribe

...