Well do ya? Punk! Have to love Clint Eastwood. The man can do no wrong. Well at least in my opinion.
Fall and football season is here and so many of us love to gamble on various games and sports. Maybe you like to hit the track and bet a horse. Maybe your a big fan of Vegas and casinos. Maybe you love to play the lotto. What would you do with $147 Million (current Jackpot)? I know I definitely would not tell anyone I won. Even my dad. Kidding. I would tell my dad just not my mom. Kidding again. I would probably buy an Audi S4 and a Maserati Gran Turismo, a condo here in South Florida and a condo in Brazil and maybe one in Thailand. Then I would invest a lot of it in Alibaba stock and maybe buy a few gifts for family and friends. It’s nice to dream. But I have plans to be very wealthy anyway and winning that kind of money is uber rare. I think I am more likely to be struck by lightning, mauled by a bear, and bitten by a tiger in the same day. Ok get to the point Denn I don’t have all day. What do you want to tell me about gambling and taxes?
Do I have to report my gambling winnings? Yes. Uncle Sam likely knows about your winnings because the payer often issues a form W-2G. So your winnings have to be reported on Line 21 of the 1040 Other Income. Yes that includes but is not limited to casino winnings, lottery winnings, prize winnings (cars/vacations), horse races, etc.
What about all the money I spent gambling to get those winnings? Good news. You can deduct it. But only up to the amount of your winnings. So if you won $10,000 you can deduct up to $10,000 in losses. Just because you spent $20,000 to get that $10,000 does not matter. Sorry.
Stinks doesn’t it? If I win a car, a boat, a rocking chair or an ice cream maker, Uncle Sam wants a taste. Anyway, so that’s the story on gambling and taxes. So keep track of those W-2G’s because we will certainly need them. Also keep track of the money you spend on gambling, because you may find it’s time to seek help. Kidding for a third time. Again, if you itemize your deductions you can take the losses as a deduction. Until next time. d2 Signing off.