Could it still be taxable if the cash back or rebate or whatever you
call it is rendered as limited just to slot play?
On 10/24/2011 10:36 PM, vp_wiz wrote:
>
> rob.singer1111@yahoo.com <mailto:rob.singer1111%40yahoo.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).
>
