When has that ever stopped them?

Republicans have taken an anti-gambling stance consistently on their party platform. It does not surprise me that the tax plan includes a change which penalizes gamblers. I am surprised it wasn't worse, although I'm sure Adelson's money was a consideration.

So the law change is terrible for someone like a live player who travels a lot/plays big buyin MTTs/has big expenses/can have a losing year, and (previoulsy) could deduct all of these expenses & carry over losses to a future tax year? But has little-to-no-effect for the online grinder with low deductible expenses and steady wins? (i.e. $5k or less expenses on $50-100k YoY, etc.)

And no idiciations that the new, below-the-line QBI 20% deduction, wouldn't apply to professional gamblers? Except for the above limitations ( i.e. live player/MTT/big expenses/losing years)?

The change (and there is obviously confusion as to whom it effects and whom it doesn't), only means those effected can no longer carry any losses from one year to the next. And by losses, I mean combined gambling losses and related expenses. So, if you have a bad year, that bad year cannot benefit you the next year as it can with other activities (investing, buying/selling stuff)

There are limitations on the QBI deduction based on income level and these restrictions are more stringent for service-based entities (of which poker players are) compared to entities which make things. I don't see any reason why the deduction would be different for a gambling entity compared to another service-based entity, like a law firm or doctor's office.

touche

I'm only aware of the anti online gambling planks in 2008 and 2012 (gone in 2016). Am I missing something?

uigea 06

I have come back from meeting with my tax advisor. As I expected, she is in agreement with me that the new law would in no way limit what an s-corp (formed for gambling purposes) could deduct as far as business expenses are concerned. So, if you're incorporated as an s-corp, your company can continue to deduct your travel, training, other related business expenses on your business tax return.

And this is the crux of the matter of what I originally mentioned. Since there ARE new limitations on how much, in the way of gambling-related expenses, can be deducted on one's PERSONAL tax return, it seems to me there may be some cases where incorporation would be a beneficial strategy.

Anyhow, this is her and my opinion. Hers is more qualified than mine, but even so, it seems that one can ask the same question to two different accountants and get two different answers. As always, I would recommend anyone directly affected by the changes in this new law to consult their own tax professional who would be more familiar with the specifics of their unique situation.