How to Limit Your Tax When Gambling

This is how you can limit the tax bill when you’re gambling at a casino.
IRC (Tax Code) section 61 provides, in pertinent part, that “gross income means all income from whatever source derived....” There are exceptions such as section 102 (gifts) but there is no exception for gambling income.
Your gambling gains have to be reported (currently on line 21 of schedule 1 as other income). The words “miscellaneous” and “other” are terms used here informally for gambling income but note that line 21 of schedule 1 says “other.”
HERE’S WHERE MOST GAMBLING CASES GO WRONG: The IRS often relies on W2 forms that show a nice result but sometimes a gambler leaves the casino with less because of his or her subsequent wagers after a big hit. You can easily keep records that will be better (more probative) evidence of your actual gambling income. Manning8 is a licensed attorney and discusses the current tax law as it is applied in real cases at the Tax Court and gives you a simple game plan for your next gambling trip.
Note: Manning8 references the trial transcript at page 5, lines 9-10, wrt litigation experience in Ms. LaPlante’s case.
Contact: [e-mail].

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She play once and won never ever played again. Yeah right!!