Gambling Loss.

[Questionguy101]

Taxpayer had a few Form W-2G totaled at about $16,000. He almost swore to you that he had more loss than the wins last year. But he did not keep the gambling win/loss daily record. You explained to him the requirements and what information is needed on the daily record. You gave him a copy of the page which explains the gambling win/loss daily record in Pub 17 and you highlighted the 4 items of information that is required in the daily record for him. He said he understood and he would go home to reconstruct the daily record based on his memory. He then came back to you the next day and said he had the daily record now and the total loss is $18,000. Would you feel comfortable to claim the $18,000 gambling loss for him?

[taxmandan]

Depends, how complete are the records? If the information meets the rules, then I would claim losses up to the amount of winnings. I would keep copies of the records he created (with his signature on the record), and put a note on the client record that this is not a contemporary record but reconstructed after-the-fact by client.

[MAJ]

Gambling Losses

If he recreated so note it.
Signature and copy is a must.
Also, someone who won/lost tha tkind of money isn't new to this.

Was this at a casino? If so, does he have a card.
Most casinos allow access to win/loss data on their web sites.

Just did that for a client..

[taxmandan]

If he recreated so note it.
Signature and copy is a must.
Also, someone who won/lost tha tkind of money isn't new to this.

Was this at a casino? If so, does he have a card.
Most casinos allow access to win/loss data on their web sites.

Just did that for a client..

Did the casino have a daily record of win/loss? I've never checked for that info online, wouild be a good idea if it meets the rules for daily record of win/loss and not just a yearly cash in/cash out statement.

[AZ-Tax]

I agree with MAJ

Have the TP sign to his losses.

[S T]

Casinos

All I have ever seen from Casinos with a Player Card is an annual cashin/cashout.

So how does the t/p go about obtaining a daily cashin/cashout record to meet the reporting requirements. I don't think most taxpayers even know of this requirement.

Sandy

[taxea]

If the client is a frequent player then he knows about the casino cards. I'm in Hawaii and people here are nuts for Vegas. I make sure my clients play with a club card and make it their responsibility to get the win/loss statements from the casinos. My rule is no ticky, no washy...they don't have the casino document they don't get to take the losses.

All they have to do is contact each casino they gambled at and the casino will mail it to them. taxea

[S T]

Casinos

What I have seen from Casinos is a netting for the year cashin/cashout. The IRS publications talk about daily cashin/cashouts.

That was my question in the prior post.

Is the t/p to obtain a daily cashin/cashout from the Casino while they are there and playing on a Club card, otherwise I don't think the Casino will offer them a total print out of each daily transaction after the fact at the end of the year.

Sandy

[taxea]

A win loss statement is provided at request from the casino when the taxpayer has a win exceeding a certain dollar amount. They create one for each large win. A cash in/out statement from a casino is the document that tracks smaller wins that are do not require a win/loss statement.

I have never requested a cash in/cash out statement so I don't know whether they are a compilation of the full year or not. taxea

[taxea]

I doubt it is done on a daily basis but the client should request it after Dec. I would think they do it on a yearly basis. taxea