W-2G Gamble Winnings

[Kurly]

Hmmm what to do? Client is a fairly large gambler (dollar wise) (she does pretty good at it).

Her and her daughter were in Las Vegas they were playing machines side by side. mom went for a potty break, daughter continued to play her mothers machine with her mothers credits. WOW it came with flashing lights and a $10,000 jack pot. Daughter showed the casino her ID etc since her mother was still in the restroom. Daughter received a W-2G. Can this be reported on her mothers return, since it was her mothers money used, with an explanation or any suggestions? Daughters financial situation is such that she could lose her SSI if she reports it on her return.

thanks

K

[Jiggers]

W-2g

Hmmm what to do? Client is a fairly large gambler (dollar wise) (she does pretty good at it).

Her and her daughter were in Las Vegas they were playing machines side by side. mom went for a potty break, daughter continued to play her mothers machine with her mothers credits. WOW it came with flashing lights and a $10,000 jack pot. Daughter showed the casino her ID etc since her mother was still in the restroom. Daughter received a W-2G. Can this be reported on her mothers return, since it was her mothers money used, with an explanation or any suggestions? Daughters financial situation is such that she could lose her SSI if she reports it on her return.

thanks

K

Sorry, daughter has to report it. If she is on SSI, what was she gambling with?

[RLymanC]

The sayin goes

Fools rush in....la la la la la la la

[Kurly]

Whose money

hey it was her mothers, the jackpot was paid on her mothers machine. Her mother had credits in the machine.

[Uncle Sam]

W-2g

If daughter was foolish enough not to realize why the casino people were asking for her id information, that's her mistake, for which she now has to pay the consequences.
Hard luck stories don't win here.

[Jiggers]

So?

hey it was her mothers, the jackpot was paid on her mothers machine. Her mother had credits in the machine.

Thats what they all say.

[Joe Btfsplk]

The only hope

The only hope would be if the casino would issue a corrected W-2G--which seems unlikely.

[Kurly]

Negative

Hey I thought we were using this board to help one another, not to be talking down about our clients.

K

[Luis Mopeo]

I'm not sure it's a slam dunk.

I certainly don't agree that the controlling factor is whose name the W2G was issued under. That's too easy.

Let's look at this from a different angle. Say that Mary and Sally go to the casino. Say that Mary's playing slots with her money on her credit card. Mary has to step away and says "Will you keep playing my machine for me?"

Let's say that machine hits the biggie, the $1,000,000 Mega-Jackpot. Sally runs off with the check.

Do you think that Mary might sue Sally? I'll bet she would. And she'd have a good case. Her money, her machine, and she asked her friend to keep it going for her.

However, doing a nominee distribution out of a W2G is all but guaranteeing an audit. As others have indicated, IRS agents would scoff and throw out the subtraction on the daughter's return. That doesn't make it right any more than whose name the W2G was reported in. But it is a practical reality. You can be right all day long and end up losing.

[Jiggers]

Experience

Hey I thought we were using this board to help one another, not to be talking down about our clients.

K

I don't think we are really talking down about your clients. I think we are passing on our years of experience, and basically saying there isn't much you can do and for you not to waste a lot of time on something that you may not receive compensation for.

I used to spend lots of time doing "stuff" for clients that, in the end, didn't get billed. I learned not to waste time.

[thomtax]

Big difference

Hey I thought we were using this board to help one another, not to be talking down about our clients.

K

There is a big difference between talking down clients and facing reality. Even with clients that I like and want to help, it's amazing at the difference in the stories given when getting money from winnings and the one given when they discover that it's time to pay up.

Another question - Where was the mother when the daughter was so graciously giving out id info and claiming the winnings for herself? This process is not instant and surely the mother was back from the restroom by then.