---In vpFREE@yahoogroups.com, <007@...> wrote :
Howard W. Stern wrote:
>The first method. ($150,000 other income - $145,000 loss shown on itemizing.) The $5,000 win is usually part of the W2Gs. This group has some people with lots bigger figures. The higher these numbers the greater likelihood of an audit.Declaring less in your income than the total of your w-2gs is likelyto be asked about, but it won't usually trigger an audit as long asthe simple explanation that you netted them with losses can be shown.------007's suggestion that one might net losses against the w-2G total runs counter to direct IRS guidance that a casual gambler can't directly reduce reported gambling winnings with gambling losses, but instead can only report losses as a deductible Sched A miscellaneous expense. So, you'll understand if I would expect such an explanation to receive further review.There's been separate discussion in the past on a related topic -- offsetting certain losses against "same session" w-2g's. Based on the concept of "session accounting" of gambling activity, it provides some reason to believe that the IRS might accept this method of reducing AGI. However, misscraps reported extensively on her attempts (and failure) to get the IRS to accept her returns on this basis.
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Posted by: harry.porter@verizon.net
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