You're supposed to report gambling winnings on your IRS tax forms, and you can deduct losses up to the amount of those winnings. But the IRS's definition of "winnings" is imprecise. Here are several example questions:
In January, I win $500 on a slot machine. In February, I lose $500 on slots. What do I report on my taxes?
On Friday, I win $500 on a slot machine. On Saturday, I lose $500 on slots. What do I report?
In the morning, I win $500 on a slot machine. In the afternoon, I lose $500 on slots. What do I report?
I'm playing roulette, betting $500/spin on red. On the first spin, a red number appears and I win $500. On the next spin a black number appears and I lose $500. Then I quit playing. What do I report on my taxes?
As you can see, the questions are generally related to what counts as a taxable "win", and over what period of time. If I play 100 spins of a $3/play slot machine and break even, I technically won $150 and lost $150 that session. What do I report?
2007-11-13
04:10:35
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6 answers
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asked by
Stacy Friedman
2
in
United States