If I win $10,000 from a state lottery and I have $10,000 in loseing scratch off tickets can I reduce the taxes I have to pay on my winnings to nill?
2007-04-13
12:01:27
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7 answers
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asked by
specdro
2
in
Business & Finance
➔ Taxes
➔ United States
The reason I ask is beacuse I work at a gas station and people come in, drop $100 in tickets which they lose on and then I throw them away. Now I am trying to get into some major poker tournments and I was hoping that if I saved all those losers so I could off set all the tax money the gov would take.... is that illegal?
2007-04-13
12:22:16 ·
update #1
Sort of, but not the way you describe. If you are reporting gambling winnings, you can deduct gambling losses as an itemized deduction up to the amount of the winnings. But there are very specific requirements for records you have to have kept all year to do this (see page 191 of IRS Publication 17 for the details) - just showing losing tickets for $10K doesn't do it. And anyway, explaining to the IRS why you had no other winnings from any of those other $10,000 losing tickets or anything else you bought would be quite a trick - would they believe you were than unlucky? Not likely.
We've all worked places where someone with a lottery win, thinking that your scheme would work, tries to collect everyone else's losing tickets so they can "prove" their losses. It won't fly - the IRS is wise to that ploy.
Yes, it would be illegal to do what you propose.
2007-04-13 13:28:32
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answer #1
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answered by Judy 7
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If you actually have the 10,000 losing lottery tickets that you yourself purchased you can use them as an itemized deduction on Schedule A rather than taking the Standard Deduction for your filing status. If you are audited the IRS will want to see all 10,000 losing tickets.
Update to additional information
YOU can not claim tickets that YOU DID NOT purchase,, that is commiting fraud.
2007-04-13 19:08:38
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answer #2
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answered by Rob 7
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First, you need receipts for every single dollar of losses in order to deducth them. Most people don't save receipts for a dollar lottery ticket here and there. Then again, I dn't know anyone who buys $10,000 worth of scratch tickets!!!
You can claim all your losses (up to the amount of winnnings) on Sch A, itemized deductions but be sure to save the receipts. Also, if you don't itemize, you are out of luck.
2007-04-13 19:05:44
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answer #3
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answered by LC 2
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Can offset gambling winnings with gambling losses in different dates of occurrence?
2014-07-11 15:38:44
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answer #4
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answered by MARCIAL 1
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that sound's pretty technical but, you would have to make a company that has a taxable status in gambling, then you may be able to keep the receipts and count them as losses to your business but, the government is pretty smart so technically no you would not survive more than likely.
2007-04-13 19:07:00
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answer #5
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answered by jharb81prosolar 1
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LC is correct.
Your question sounds as though you are planning Illegal Tax Evasion.
2007-04-13 19:08:58
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answer #6
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answered by fatsausage 7
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Yeah, but you need reciepts for every dollar, so you can prove that you spent the money on gambling.
2007-04-13 19:09:21
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answer #7
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answered by Bigfoot 7
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