Using the session method will significantly reduce the amount of winning reported on Form 1040. It won't eliminate the problem but will minimize the impact. Searching the archive should produce a number of posts on this topic. I have been using this method for years and have never had a problem. I do provide the IRS with a spreadsheet of W-2G's and detailed win-loss results for each session.
Joel
________________________________
From: Joseph Annechino <floridagambler@yahoo.com>
To: "vpFREE@yahoogroups.com" <vpFREE@yahoogroups.com>
Sent: Monday, December 3, 2012 10:14 AM
Subject: [vpFREE] New Tax Law
One proposals for the new tax law is to restrict itemized deductions for high income taxpayers.
Presently, gambling losses are deductible as itemized deductions to the extent of gambling wins. I am concerned that if this change is made, taxpayers will be forced to pay taxes on all wins without being able to deduct the corresponding losses. For example, if a taxpayer has $100,000.00 in W-2 G's in a given year, taxes may be owed on the $100,000.00 at 40%, or $40,000.00, even though the taxpayer may have a net gambling loss for the year.
Will this change kill high limit video poker and slot machine play? It certainly will for me!
Of course, this change will only affect the non professional gambler so people like Jean Scott or Bob Dancer will not be affected.
Does anyone have thoughts on this matter?
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