The phrase "goodwill distribution" has no meaning in tax law in this context. "gift" needs to be free of consideration.
I'm no expert, but am an accounting professional .... I expect that the requirement to return to the casino to play the coupon, as well as the general stipulation that redemption without play may kill further offers, would be likely sufficient to establish consideration.
I don't consider play accounting to be rocket science. I report my results on a cash basis. Anything directly related to play that reduces my cash outlays on gambling is reported as a reduction in gross loss, or reported as gross winnings (as circumstances deem appropriate).
---In vpFREE@yahoogroups.com, <jimengstrom1@...> wrote :
> A coupon from Caesars is not money and clearly says so on the coupon. If you lose the coupon (in a machine or otherwise) you have lost no money.
But, how do you handle what its value has become after it is played through once and it becomes real money?
Is the ending amount simply considered to be winnings, with nothing having been risked in earning it? In my opinion, it's a gift or "goodwill distribution" from CET to you, the amount of that gift is not determined until you have played it through.Like any gift you receive, it's not a taxable event for you. After CET has distributed a certain amount in any one calendar year (currently someplace around $14,000) to any one individual, I would think there would be tax consequences for them, but that's not the recipients concern. Jim
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Posted by: harry.porter@verizon.net
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