Rob, I'll try to clarify my thoughts here ...
Say you buy a computer printer and it comes with a $100 rebate. It's a no-brainer that there's no implication re the IRS for the average joe -- it's simply a rebate on the purchase price.
However, if you happen to take a business deduction for the printer, then there's no way around the fact that the rebate reduces your basis in the printer and your corresponding deduction.
The way I see it, it's the same situation with cashback: If you aren't reporting anything on your return related to your wins/losses, then cashback is a reporting non-event as well. But once you report wins and offset them with losses, it's necessary to reduce those losses with any redeemed cashback (in other words, what you report on your return should reflect your actual net cash impact from gaming).
But I have no personal vested interest in this position, Rob, and if your reporting (x. cashback) passes muster, more power to you.
- H.
--- In vpFREE@yahoogroups.com, "rob.singer1111@yahoo.com" <rob.singer1111@...> wrote:
>
> I'm just reporting what I've been told in the audits Harry. My comments pertaining to other rewards seem to make sense to me, in that if you report slot card reward cash as income, you'd probably be inclined to report credit card reward cash back etc. also. I don't see where buying something, winning something, or losing something has anything to do with it.
