--- In vpFREE@yahoogroups.com, "vp_wiz" <harry.porter@...> wrote:
>
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> The IRS has been explicit in requiring a "contemporaneous" gaming record, supported by any other appropriate documents, to backup loss deductions when questioned. End of year casino win/loss statements are rejected as sufficient documentation (as are many "after the fact" reconstructions).
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Harry, I completely agree with you that this is what the IRS says they want, but listen to this: I was audited last year on my casino losses for year 2007, and my CPA sent the auditor a copy of my detailed hand written contemporaneous win/loss log, which was immediately and completely REJECTED as evidence of losses. The auditor wrote back that the best way to prove my losses was to send in copies of the win/loss records obtained FROM THE CASINOS I VISITED. So, in other words, the auditor's request was 180 degrees opposite of what the IRS states in their very own instructions. Based on some posts that have shown up on other gambling sites, I don't believe I'm the first person to run into this opinion during an audit. Anyway, the outcome was that I eventually did obtain sufficient documentation from the casinos to substantiate my declared losses and make the audit go away, but it was certainly a big pain. Harrah's and MGM make it easy to get win/loss records. Some other casinos - not so much.
>>>>>>>>>> The risk of an audit, triggered merely by moderate reported gaming activity is slim, at most. (I know of audits only in the case of someone filing as a professional gambler, or where the accounting used resulted in reported gross wins less than total reported w-2G's.).....
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Until recently, I would have agreed with this statement. But when I went through the audit last year, my accountant told me "If it makes you feel any better, practically every client I have that has itemized gambling losses is being audited this year".
EE
