Gambling Gaines & Losses Daily???

[BOB W]

I did not read it like that at all, nor did the update I saw during the summer go that route. If the TP has the records of basis that had no winnings that can be added together to take on Sch A up to the total amount claimed on page 1. The example quire clearing used losses on days that had no winnings and no gain. The amount for each day is netted to page one and all other amounts wagered go to Sch A with the limit.

Good luck putting that on a tax return even if losses are well documented, which most are not.

Fee structure at preparation time should include CP2000 time because you will be blamed for preparing the return that caused the audit. Yes, this will be an audited return or at least as time consuming.

Just doing the return will require pre-audit preparation time so that when the CP2000 comes in your reply is ready to go.

[Jiggers]

How to handle

Help me handle this one.

Taxpayer comes in with 3 W-2G's totally $5,000.

He says "I didn't make any money, and I put it all back in".

I ask for the casino printout and it shows the following:
"Ins" $10,000 meaning money put into the slots
"Out" $8,000 meaning money won, including the $5,000 W-2G's.

Now you have to report all income. Do you show in detail on line 21:
W-2G $1,000
W-2G $2,000
W-2G $2,000
Other $3,000 meaning the difference between the W-2G's and the total income won from the casino report. The W-2G's are listed separately for CP2000 matching.

And report the gambling expenses up to the $8,000 as an itemized deduction on Schedule A.

Or do you show this on line 21, on an attached schedule:
W-2G $1,000
W-2G $2,000
W-2G $2,000
Other $3,000
Less -$8,000 gambling expenses
-------------
Net $ 0

[Kurly]

Win/Loss Statement

My understanding is that the win/loss statement from casino is not used in calculating the out of pocket ins and outs. The IRS says The fluctuating wins and losses left in play are not accessions to wealth until taxpayer redeems tokens. Therefore what taxpayer had in pocket at start vs what taxpayer has in pocket when T/P left the machine is true win or loss. I think I am rambling, to much IRS influence ( Daughter Data Mgr and Son in Law Desk Auditor at IRS)

Kurly

[BOB W]

I still don't know how to report gambling winnings and losses under this new ruling. Tax programs are not set up for this type of reporting. I have enough trouble dealing with clients that get W2-Gs as it is. There has got to be another solid way around this.