if a card player won aprox 15k this year but it brought his book to plus 7300?

Question

i sould only have to pay tax on 7300 right?

Answer 1

It is true that you can deduct documented gambling loses up to the amount that you win. You can not just offset the wins with loses, then report the winnings.

Also, miscellaneous deductions start at 2% of your AGI.

Talk to your tax accountant.

Answer 2

To add to the answer above, there could be some hidden tax costs involved.

As correctly noted above, the $15K is added to your income and the losses (not to exceed $15K) are deducted on Schedule A. Since the entire 15K is included in your AGI, however, that entire amount will affect any tax computations which may be based in part on AGI.

That could include increased taxability of any social security you receive, and/or decrease your itemized deducitons.

Answer 3

Yes, as long as you can document your losses. From the IRS tax topics:

You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A. However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

Answer 4

You can deduct your gambling losses up to the amount of your reported earnings as an itemized deduction on Schedule A. Assuming you are claiming $15K as gambling income... You can deduct your loss of $7,700 on your schedule A. You will need to be able to document and prove your losses if you get audited.