Harry wrote:
>rob.singer1111@yahoo.com wrote:
>
>> Yes, gambling profit. Cash back etc. is no different than airline
>> miles, hotel points, or any other reward program.
>
>Since I don't haven't had any discussions with the IRS on this matter, whatever I offer up here must be considered "academic".
>
>That said, I find myself hard pressed to imagine an examiner wouldn't view the relationship between cashback and the underlying reported gaming activity to be sufficiently strong to warrant combined reporting.
>
>"Cashback" takes many guises, of course ... but envision making a compelling argument in a case with same day cashback that a $1000 session loss is deductible, but $100 of cashback received same day from that activity is non-reportible.
>
>Your position, Rob, taken to the extreme, argues that if I lose $5000 during a 100% loss rebate promotion, the loss is deductible, but the refund need not be accounted for.
>
>Bear in mind that they key distinction I'm making re your posted comment is the imminent tie between cashback and a reportable activity. None of the other items you note as being similar have as strong a tie to another taxable event (although many may indeed be earned in loose conjunction with activities having tax significance).
The last time I was audited, I was told that cash back was taxable.
It was even treated as an indicator of the accuracy of my entire
return. The auditor said he would verify a major item of cash back
and assume everything else in my return was as accurate as it was.
