Reporting of comps and free play is a gray area because The IRS code does not talk about it at all. But from my understanding a comp of food or a gift of free items such as anything from a potato peeler (I've gotten them) to a cruise or a iPad, is considered a gift and not reportable. On the other hand I personally believe that when you receive actual cash that is a slightly different category and should be reported. If I receive hundred dollars of free play I don't report it as a plus $100 instead I report whatever cash I take out from those free play coupons for example if I receive $100 of free play coupons and after I play them through once I have $50 that I have plus $50 if I have $200 afterwards then I have plus $200.
Again this is a gray area but that is how I personally report.
I recommend that anyone who is getting W2G's follow the IRS regulations for doing a contemporary gaming diary and list the casino you are in, the time you sit down, the time you get up, the money you put in, the money you take out, your total win or loss for that machine, and the machine number if possible.
I always include any free play or cash received in this diary. If I win any sort of cash or free play in a drawing, whether I receive a 1099 form or not, I also include it.
By these rules if you have $1000 worth of comps which could also be taken as cash, you would only include it when you've taken it as actual cash. And if your points are just sitting in the account and not doing anything they don't count it all, They only count on the day that you take them out as cash.
Good luck everyone because tax day is April 15.
By the way they say that if you get an extension for your taxes you're slightly more likely to be audited.
Posted by: Misscraps <misscraps@aol.com>
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