Re: Tax Question Re: W-2G's

"DocTCW" <doctcw@xxxxxxx> wrote in message
news:1138732697.905801.239140@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> I can't believe we have not heard from David Berman on this issue,
> because in years past he has given a different answer than simple P&L's
> to substantiate losses. What's up? Have the rules changed?
>
> Tom

It looks to me like the discussion is being handled well enough without me.

If I thought someone was giving out patently incorrect advice, which could
cause harm to someone, I might have jumped in.

The points to be made are these:

When reporting gambling wins and losses, you are expected to have
documentation available if requested or audited, but it does not go in with
your federal tax return.

Tax law on this has not changed in many years. The most common term you see
used relative to record-keeping is that you should keep a contemporaneous
record with details of your wins and losses.

Whether you itemize or take the standard deduction, you are still required
to report your gambling winnings.

But if you don't itemize, you are not permitted to offset your winnings by
your losses. I.e., if you don't itemize, you're up the creek.

You may offset losses against winnings if you itemize, buy you may not
deduct more in losses than you have in winnings. For example, if you won a
total of $10,000 but had $12,000 in losses, you may only deduct $10,000 of
your losses. Put another way, you cannot report losses in an amount that
would put you into a net loss situation.

And, for those who really want to know, ALL gambling winnings are reportable
and taxable, not just those that generate a tax document from the payer such
as a casino.

IRS guidance on this has not changed since about 1979, and could probably
use an update.



--David/NV





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