I have not worked as a tax accountant in 15 years and never did gamblers returns. If you read that law again. i think the key will be the COGS section and how people are reporting and filing. From previous discussions I have the impression that out of 10 people there are 8 different was people are filing. Some people are reporting w2 only it sounds like and others are showing the full activity.
So if you are $5M coin in, get $1M in W2's and win $5.1.M, I would think the tax is on 100K not the $1M.
Your gross $5.1M - COGS $5M leaves your profit to be taxed. The law allows you to deduct compensation or COGS.
I have no idea wht you guys are doing but new tax laws usually involve people tweaking their returns, legally or not,
Rich
AC Cheapie
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Posted by: cdgnpc@aol.com
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