"Free play, gifts, comps" These are all gray areas – not specifically mentioned in any IRS rules or regs. They are discussed in my tax book, with how different people look at them in different ways. Then you have to decide your own personal decisions, depending on your particular opinion – or consult a tax preparer professional who will give you an opinion based on his past experiences with these issues.
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Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
http://jscott.lvablog.com/
UPDATED TAX BOOK
(Download 2015 eBook now)
From: mailto:vpFREE@yahoogroups.com
Sent: Saturday, April 11, 2015 4:38 AM
To: vpFREE@yahoogroups.com
Subject: [SPAM]Re: [vpFREE] Tax question
>Also, with respect to freeplay, gifts, and comps it was an eye opener to me that gifts and comps really don't have to be reported. A couple of questions though... say I get a coupon for $50 dining in my mailer or through some kiosk promotion. Does this have to be reported if I use it?
I was audited a long time ago and I volunteered the information that I
hadn't included comps in my income. The auditor said "I didn't hear
that" and never made an issue out of it.
>Also, a much bigger question, what about points that you have? For example say you have 1000 players club points that can be turned into $1000 freeplay, $1000 dining, $1000 cash back, or $1000 in gift certificates. For each of these scenarios, would it be proper to report or not report it?
I account for these on a cash basis and have never had a problem.
Accounting for comps and points probably both fall into the large
category of issues for which there may be a technically correct way to
do it, but, for practical purposes, you might as well do it the way
you want to, since the most you're going to risk is to be billed,
possibly with interest and penalties, which, generally, has a tiny
chance of happening. It's not in the same league as, say, having many
$9900 transactions with banks.
[Non-text portions of this message have been removed]
Posted by: "Queen of Comps" <queenofcomps@cox.net>
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