Prize won gambling

[bekzm]

Have a client that is upset because she won a lawn mower from a drawing that she did due to gambling. The gambling got her into this spot for a drawing and she won. She received a
1099-Misc which states $1800 - Other income. She wants to write it off with her gambling losses that exceed the winnings plus more. So can she deduct her prize off as gambling losses on Sch A? I reported the 1099-Misc on line 21.
Or can I deduct the amount that was offered to her in cash of $1,000 vs the lawn mower which she took the lawn mower but she could have gotten cash so the value of the mower was only $1000.
They told her to take her losses on the mower - yes or no.
Thanks

[taxmandan]

Nope, not gambling just raffle

Have a client that is upset because she won a lawn mower from a drawing that she did due to gambling. The gambling got her into this spot for a drawing and she won. She received a
1099-Misc which states $1800 - Other income. She wants to write it off with her gambling losses that exceed the winnings plus more. So can she deduct her prize off as gambling losses on Sch A? I reported the 1099-Misc on line 21.
Or can I deduct the amount that was offered to her in cash of $1,000 vs the lawn mower which she took the lawn mower but she could have gotten cash so the value of the mower was only $1000.
They told her to take her losses on the mower - yes or no.
Thanks

It's not gambling winnings, that's why it is on a 1099MISC not a W2G. She can't offset with gambling losses on Sch A.

[Larmil]

What is the rest of the story?

Have a client that is upset because she won a lawn mower from a drawing that she did due to gambling. The gambling got her into this spot for a drawing and she won. She received a
1099-Misc which states $1800 - Other income. She wants to write it off with her gambling losses that exceed the winnings plus more. So can she deduct her prize off as gambling losses on Sch A? I reported the 1099-Misc on line 21.
Or can I deduct the amount that was offered to her in cash of $1,000 vs the lawn mower which she took the lawn mower but she could have gotten cash so the value of the mower was only $1000.
They told her to take her losses on the mower - yes or no.
Thanks

Paul Harvey died, so I am not sure.

1. The mower was not gambling winnings - it was a prize drawing - no gambling losses allowed.

2. Why did she take to mower instead of the $1,000 since, as you say, the value of the mower was $1,000?

3. Did she sell the mower, unused, and for what price?

Answer 2 and 3 and I will give you my guess of what is the 'rest of the story'.

[bekzm]

Paul Harvey questions answered!!!

1. She is saying that since she gambled to get her name in the drawings, she had to gamble so much - then that got her a seat on the poker table - then name in drawing. But a friend of hers won the BIG one - a car and her CPA is taking gambling losses off and she is upset cause I told her no. Now for #2

2. They have a lot of land to mow - so the mower was more handy then the money - would have lost the money - gamble it away.

3. Using the mower - did not sell. So do I stick to my answer or find out what the other CPA is taking and why - for the rest of the story - what is the answer....thanks - that was fun for this time of year. Made it more interesting instead of boring...

[Larmil]

Just a quess

1. She is saying that since she gambled to get her name in the drawings, she had to gamble so much - then that got her a seat on the poker table - then name in drawing. But a friend of hers won the BIG one - a car and her CPA is taking gambling losses off and she is upset cause I told her no. Now for #2

2. They have a lot of land to mow - so the mower was more handy then the money - would have lost the money - gamble it away.

3. Using the mower - did not sell. So do I stick to my answer or find out what the other CPA is taking and why - for the rest of the story - what is the answer....thanks - that was fun for this time of year. Made it more interesting instead of boring...

Maybe the $1000 was the casino's cost and the $1800 was the retail value (FMV unless she can prove otherwise).

[New York Enrolled Agent]

1. She is saying that since she gambled to get her name in the drawings, she had to gamble so much - then that got her a seat on the poker table - then name in drawing. But a friend of hers won the BIG one - a car and her CPA is taking gambling losses off and she is upset cause I told her no. Now for #2

I'm more of the school that it is a prize BUT you should read Libutti TC Memo 1996-108. You MIGHT possibly have some hope of a nexus to gambling.