Recently posted: <<You do have to show a profit in 3 out of 5 years [to file as a professional gambler]>>
That is not exactly correct. Here is what Marissa explains in the book TAX HELP FOR GAMBLERS: Some people misunderstand the "three-of-five" rule for Schedule C, making a profit three years out of five. One tax expert explained it this way: "A gambler who makes a profit in three (or more) of five tax years is entitled to a presumption, which the IRS can overcome, that he is in business; a gambler who doesn't has to overcome the contrary presumption."
By the way, there is a new updated edition of this book coming out around mid-January, only available as an eBook this time. It has much new information – updates and changes – with details about the most recent court cases that impact gamblers. Many changes in the section about state taxes too. I'll let you know when it is available for download.
------------------------------------------
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
From: mailto:vpFREE@yahoogroups.com
Sent: Wednesday, December 31, 2014 1:07 AM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: Medicare and W-2Gs
Once you are retired from your primary job you should have no problem filing Schedule C as a professional gambler (your part time job) This eliminates the issue as all W2G's and netted out with losses on Schedule C before it is carried over as Gross Income on form 1040. . You do have to show a profit in 3 out of 5 years, treated like a real business and pay SE Tax but you get a lot of deductions in return you can take including trial, meals, mileage, home office, and even take the M&E per diem while on the road.
[Non-text portions of this message have been removed]
Posted by: "Queen of Comps" <queenofcomps@cox.net>
| Reply via web post | • | Reply to sender | • | Reply to group | • | Start a New Topic | • | Messages in this topic (1) |
