But I lost it all back at the casino near my house. The online poker money is recorded and sent to my checking account. However, I don't have record of me losing the 5000 to the casino. Do i have to pay taxes
2006-08-06 20:13:42 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
also, assume that I could get record from the casino that I lost 5000. do i still have to pay taxes, since 5000-5000=0 income
2006-08-06 20:43:13 · update #1
The full $5,000 should be reported on page one of your Form 1040 as miscellaneous income. The $5,000 loss needs to be deducted on Schedule A (Miscellaneous Itemized Deductions) that are not subject to the 2% of income reduction. The IRS will accept a taxpayer log to deduct your gambling expenses. They'll be looking for the location, date and time you were gambling, the type of betting you were doing, who you were with when you were gambling, and any supporting documentation of what you spent (like ATM withdrawals, checks written to the casino, etc.). Go to the IRS website at http://www.irs.gov and look up Publication 529 if you need more specifics.
2006-08-07 05:31:21 · answer #1 · answered by SuzeY 5 · 1⤊ 0⤋
I think you have to pay for an income tax on your $5000 won from the poker but your loss is non deductible because it is not supported by a proper documents.
2006-08-06 20:27:12 · answer #2 · answered by sastra 3 · 0⤊ 0⤋
You should be able to prove the loses somehow. The money had to come from somewhere so there should be a paper trail of some sort. You bank statements should show the withdrawls.
2006-08-07 04:15:07 · answer #3 · answered by extra_37 4 · 0⤊ 0⤋