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Kentucky derby winnings

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    Kentucky derby winnings

    How would you handle the tax return for the Kentucky Derby winner (not the horse)?

    vs

    Publishers Clearing House winner
    Always cite your source for support to defend your opinion

    #2
    Originally posted by TAXNJ View Post
    How would you handle the tax return for the Kentucky Derby winner (not the horse)?

    vs

    Publishers Clearing House winner
    I never had to deal with a Publishers Clearing House Winner or Kentucky Derby winner but I have done several dog track race winners over the years. They were issued W2-G and I treated it as any other gambling winning. Had them give me their win loss statements from all gambling activities and the losses up to winning went on Sch A.

    I assume a Derby winner would be issued a W2-G and the treatment would be similar??
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment


      #3
      Ok how about

      Originally posted by ATSMAN View Post
      I never had to deal with a Publishers Clearing House Winner or Kentucky Derby winner but I have done several dog track race winners over the years. They were issued W2-G and I treated it as any other gambling winning. Had them give me their win loss statements from all gambling activities and the losses up to winning went on Sch A.

      I assume a Derby winner would be issued a W2-G and the treatment would be similar??
      Ok. How about tax treatment of the owners of the horses in the Kentucky Derby race?
      Always cite your source for support to defend your opinion

      Comment


        #4
        do they have a horse racing business?
        Believe nothing you have not personally researched and verified.

        Comment


          #5
          Yes

          Originally posted by taxea View Post
          do they have a horse racing business?
          Yes for this scenario.

          For example, the 2015 owner winner, Businessman Ahmed Zayat first entered Thoroughbred racing in 2005,
          Last edited by TAXNJ; 05-04-2015, 06:36 AM.
          Always cite your source for support to defend your opinion

          Comment


            #6
            Originally posted by TAXNJ View Post
            Ok. How about tax treatment of the owners of the horses in the Kentucky Derby race?
            I have done tax returns for Dog breeders but they were small time Sch C operations. I am assuming based on the multi-million dollar cost of these race horses and the training and upkeep these returns are a "tab bit complicated" beyond my pay grade!
            Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

            Comment


              #7
              Well

              Originally posted by ATSMAN View Post
              I have done tax returns for Dog breeders but they were small time Sch C operations. I am assuming based on the multi-million dollar cost of these race horses and the training and upkeep these returns are a "tab bit complicated" beyond my pay grade!
              Well based on your statement "I have done tax returns for Dog breeders but they were small time Sch. C operations" sounds like your background experience would make you able to handle with the proper resources.
              Always cite your source for support to defend your opinion

              Comment


                #8
                Originally posted by TAXNJ View Post
                Well based on your statement "I have done tax returns for Dog breeders but they were small time Sch. C operations" sounds like your background experience would make you able to handle with the proper resources.
                The key word is "proper resources"! I certainly don't want to bite more than I can can chew!

                I just declined an engagement to do a 1041 and estate return for a relative of one of my clients because it involved 3 states and foreign assets. I could have taken the engagement and "learned" through the process but I wanted to be fair to the client and explained that I just don't have the resources right now to do it right and be sure of it.

                Over the years I have learned not to over extend myself. I am just a one person shop with part time help.
                Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

                Comment


                  #9
                  Atsman

                  Originally posted by ATSMAN View Post
                  The key word is "proper resources"! I certainly don't want to bite more than I can can chew!

                  I just declined an engagement to do a 1041 and estate return for a relative of one of my clients because it involved 3 states and foreign assets. I could have taken the engagement and "learned" through the process but I wanted to be fair to the client and explained that I just don't have the resources right now to do it right and be sure of it.

                  Over the years I have learned not to over extend myself. I am just a one person shop with part time help.
                  Smart strategy on your part. As you mentioned in your prior post, one would need to plan what the best tax strategy in type of organization they need to form. In addition to federal tax, there are state and/or county taxes and counties that may re-zone their farms creating more issues.

                  Listed below are some brief articles. Thanks for your input.

                  My home state was on national display Saturday evening with the Kentucky Derby, with California Chrome notching a win, finishing the 10 furlong ( 1.25 miles) race in 2:03.66 (a bit on the slow end for recent years, though Super Saver’s 2010 win was slower, at 2:04.45). California Chrome is owned by two Nevadans who […]


                  Always cite your source for support to defend your opinion

                  Comment


                    #10
                    Changing the subject a bit but still keeping up with the do not bite more than you can chew theme.

                    Yesterday on ABC I heard former President Clinton say that the reason foreign donors were not disclosed properly is because the fellow who prepared his 990 form put it on the wrong line.

                    Time to fire that tax preparer and get a new one, perhaps a competent preparer!!
                    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

                    Comment


                      #11
                      2 sides

                      Originally posted by ATSMAN View Post
                      Changing the subject a bit but still keeping up with the do not bite more than you can chew theme.

                      Yesterday on ABC I heard former President Clinton say that the reason foreign donors were not disclosed properly is because the fellow who prepared his 990 form put it on the wrong line.

                      Time to fire that tax preparer and get a new one, perhaps a competent preparer!!
                      2 sides to each story. What did preparer say? Still using the same preparer?

                      See attached for 2013



                      And since you mentioned a media report, check this

                      Clinton Foundation has earned a 4/4 Star rating on Charity Navigator. This Charitable Organization is headquartered in New York, NY.
                      Last edited by TAXNJ; 05-05-2015, 07:59 AM.
                      Always cite your source for support to defend your opinion

                      Comment


                        #12
                        The winnings go on his business return as income and the expenses also. Unless he didn't get the winnings from his own horse, in which case, it would be ln 21 gambling income and Sch A for gambling losses (if any)
                        Believe nothing you have not personally researched and verified.

                        Comment


                          #13
                          Yes

                          Originally posted by taxea View Post
                          The winnings go on his business return as income and the expenses also. Unless he didn't get the winnings from his own horse, in which case, it would be ln 21 gambling income and Sch A for gambling losses (if any)
                          Correct. Interested in knowing if any land in Paradise, Hawaii available to purchase for horse racing or breeding?
                          Always cite your source for support to defend your opinion

                          Comment


                            #14
                            Originally posted by TAXNJ View Post
                            Correct. Interested in knowing if any land in Paradise, Hawaii available to purchase for horse racing or breeding?
                            Sure but you would have to include a racetrack.
                            Believe nothing you have not personally researched and verified.

                            Comment

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