I have spent $2000 in the lottery and won $0. Can I deduct that $2000 from my gross income? I itemize.
2007-12-09 02:54:34 · 6 answers · asked by Tony M 1 in Business & Finance ➔ Taxes ➔ United States
You cannot deduct more in gambling losses than you report in gambling winnings. If you won money gambling (even if not in the lottery), then you can deduct your total losses up to the total of your winnings. If you won no money gambling, then you cannot deduct any gambling losses.
2007-12-09 05:59:11 · answer #1 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Although your net is zero, you may still have some deduction that you are allowed.
Do you also have records of small "wins" like a ticket that gave you a free ticket, or even a few dollars? Then you claim the total of your wins on Line 21 of Form 1040, and you will be allowed a deduction up to the amount of your wins.
In order to benefit from the deduction, you must itemize your deductions on Schedule A.
2007-12-09 04:29:18 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
No. Gambling loss deductions are limited to the amount of your winnings. If you won $0 you get no deduction.
2007-12-09 03:15:26 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
No, you can only deduct gambling losses up to the amount of your winnings. And even then you can only deduct them if you itemize, and there are also some strict recordkeeping rules.
2007-12-09 03:58:07 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
No. You can only deduct your losses up to your gambling winnings and you have to keep detailed records.
2007-12-09 04:59:21 · answer #5 · answered by Gary 5 · 1⤊ 0⤋
No.
2007-12-09 03:11:37 · answer #6 · answered by Jim Kirby, CPA/PFS, CFP, CFS 3 · 1⤊ 0⤋