Gambling Win

[AccTaxMan]

Taxpayer received a statement (it is a statement in the format of a letter, not a Form W-2G) from the casino. It reads:

Slots Coin In: $92,691.15
Slots Coin Out: $90,162.23
Total Slots Win/Loss: $2,528.92

Jackpots: $0.00

Total table Games Win/Loss $100.00
---------------------------------------------------------
Total Win/Loss: $2,628.92

I have been considering how to report this statement on the tax return. I am thinking to put $2,628.92 on line 21 as 'gambling winning'.

Thoughts?

[Burke]

Sorry, can't net 'em on line 21. Winnings go there. Losses on Sche A.

[AccTaxMan]

Sorry, can't net 'em on line 21. Winnings go there. Losses on Sche A.

If that's the case, does it mean the taxpayer has to have a daily dairy record to support the more than $90,000 'loss' (even if he has a net win for the whole year)? What about if he doesn't keep the record?

Now it seems like this tax return is like 100 times more complicated than I first thought.

[Burke]

Based on the letter, it looks like the casino kept the record for him.

[janelljo]

If that's the case, does it mean the taxpayer has to have a daily dairy record to support the more than $90,000 'loss' (even if he has a net win for the whole year)? What about if he doesn't keep the record?

Now it seems like this tax return is like 100 times more complicated than I first thought.

The "form" that your taxpayer presented you sounds like the printout that casinos give you if you have a player's card. It shows the amount of money played, and won, if applicable. They obviously have a loss which isn't deductible unless they have enough winnings.

[AccTaxMan]

Based on the letter, it looks like the casino kept the record for him.

In Pub 17, they are very specific about the information that needed in the 'diary' which is required to claim the gambling loss. I doubt the casino would keep a detailed diary for him like that.

[Burke]

Took another look at your OP. It appears from your figures, he has a net loss, not a net win. Correct?

[AccTaxMan]

Took another look at your OP. It appears from your figures, he has a net loss, not a net win. Correct?

Yes it is a net loss.

But my question is that if the $90,000+ winnings goes on line 21 and the $90,000+ losses goes in Schedule A, the taxpayer would need the 'daily record' in order to support the $90,000+ losses in Schedule A.

[New York Enrolled Agent]

You might want to go to the IRS website. In the search box, type in AM 2008-011.

This guidance from Chief Counsel details what should be done for "daily" wins & losses for the casual slot player.

[taxea]

The taxpayer does not need a daily record he just need to provide you with the win/loss statements from all the casino's he gambled at. if this is the only one then this is the record. taxea

[Davc]

Everybody should read this article:

http://www.thefreelibrary.com/Establishing+basis+for+gambling+losses:+most+taxpayers+are+unaware+of...-a0164947130