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Server Time: 12/1/2008 12:28:06 PM PACIFIC |
 taxes, tron, 6. Oct 2003 22:30 | ||
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| just curious if anyone has won money and reported as taxable winnings. For example: u placed 4th in a tourney and it pays you 1200. But the entrie fee is 1000. how does this work? | ||
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| Re: taxes, Angel, 6. Oct 2003 22:39 | ||
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| I believe (unfortunately as a result of someone else doing my taxes I don't know) that the $1200 is reported as unearned income and the $1000 is an itemized deduction. | ||
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| Re: taxes, KJo, 7. Oct 2003 09:35 | ||
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| That is correct, although I'm not sure what you mean by "unearned income." Income is income, it ends up in the same place. Here's the killer though- if you take the standard deduction on your taxes (no mortgage, no dependents, etc.) rather than itemized deductions, you won't be able to deduct the gambling losses unless they're larger than the standard deduction, and even then in essence all you're able to deduct is the difference between the standard and your total. So you're screwed if that applies, as it did to me. Eli on 6. Oct 2003 22:39 Angel wrote: > I believe (unfortunately as a result of someone else doing my taxes I don't know) > that the $1200 is reported as unearned income and the $1000 is an itemized deduction. > | ||
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| Re: taxes, Dr_Monkey, 14. Oct 2003 10:14 | ||
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| This doesn't sound right. The $1200 is income but it is offset by the cost of the tournament, $1000. So you have income of $200. If you had a $1000 loss, you would have a deduction. I will see if I can find the exact section of the Code that applies to this. But I think it is similiar to someone lending $1000 to someone and getting $1200 back. The $1000 of the $1200 is return of capital and the $200 of the $1200 is income. on 6. Oct 2003 22:39 Angel wrote: > I believe (unfortunately as a result of someone else doing my taxes I don't know) > that the $1200 is reported as unearned income and the $1000 is an itemized deduction. > | ||
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| Re: taxes, KJo, 14. Oct 2003 14:10 | ||
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| It is right, and yes, it's messed up. I won a jackpot in Vegas a couple years ago for $4800. The total amount on the IRS form was $4800. There's no opportunity to deduct the losses or the initial buy in (in this case $100) off the top of the win. So far as I know there's no way to offset your expenses on a 1040, deductions have to be deductions. The other example you cite would make the $200 income from interest, and they wouldn't care at all about the capital. Gambling is a different beast. Eli on 14. Oct 2003 10:14 Dr_Monkey wrote: > This doesn't sound right. The $1200 is income but it is offset by the cost of the > tournament, $1000. So you have income of $200. > > If you had a $1000 loss, you would have a deduction. > > I will see if I can find the exact section of the Code that applies to this. But I think > it is similiar to someone lending $1000 to someone and getting $1200 back. The $1000 of > the $1200 is return of capital and the $200 of the $1200 is income. > on 6. Oct 2003 22:39 Angel wrote: > > I believe (unfortunately as a result of someone else doing my taxes I don't know) > > that the $1200 is reported as unearned income and the $1000 is an itemized deduction. > > > | ||
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| Re: taxes, johnph77, 7. Oct 2003 03:15 | ||
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| The thing about reporting gambling winnings and losses on your tax return is that larger sums have a tendency to arouse attention from the IRS. If you lose and deduct a substantial amount, in order to stand a chance of surviving an audit, all your deductions for losses have to be documented, and more than likely not with just a printout you generated, but with firm evidence from the site(s) at which you have played and lost. | ||
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| Re: taxes, Easy E, 8. Oct 2003 09:23 | ||
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| the other thing that will raise the IRS collective eyebrows is a sudden reporting of gambling wins/losses when you've never done it in the past or when you don't report anything else for that year. Keep good records for yourself AND the IRS and you'll never have to worry about it | ||
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