Hi,

I would like to update you on my observations of a new tax reform (aka TCJA signed by Trump in December 2017) and it's effect on pro gamblers.

1. One of the biggest changes is Net Operating Losses. Pro gamblers are no longer allowed to deduct any expenses in excess of winnings unlike before. For years 2018 to 2026, wagering losses AND ordinary and necessary business expenses must be limited to the winnings.

2. Net Operating Losses from prior years are still carrying forward. So, you can use your 2017 NOL to offset your 2018 income.

3. 199A deduction aka 20% deduction. While it has a somewhat complicated calculation, in a simple English, if you make less than 315k (married, or 157.5k single) you can take an additional 20% deduction for your Schedule C net income. Its subject to limitations and won't be exactly 20% in most cases. If you make more than those limits, you will have even more limitations but there are ways to maximize that deduction.

Please contact a credible and an experienced CPA for more info! New tax law is quite complex.

The new tax law in general now makes it all the less relevant in the eyes of the IRS being a "professional" at poker. NOL's were the biggest advantage claiming pro status vs. recreational. No longer. But that is just how I see it.