Technically this strategy does not work because we are REQUIRED to report ALL gambling income, not just the jackpots reported on W-2G's. So if you are on a lower denomination play with the same EV in real $$'s, your reportable income would average out to the same as is it would playing the higher denomination.
If you read the W-2G carefully it does not state that it is a report of actual income, only a report of "winnings". The IRS "sessions" memo (can be found in the files section of vpFREE) supports this interpretation of what a W-2G represents.
I wonder what happens in the situation where both spouses in a marriage(filing jointly) are professional gamblers filing Schedule C's. That describes our household. Fortunately neither of us has yet had a losing year. We do combine our Schedule C incomes on the 1040. Will the IRS allow us to report only the net? I'm hoping I never discover the answer.
G'luck all,
Gamb00ler
walterhnri wrote :
I believe that the simplest way to avoid the tax problem is to minimize W2-Gs even when using the same volume of coin-in and with the same expected value (EV). For instance, play 100P JOB 5-cent (@ $25 per hand) or 10P JOB 50-cent (@ $25 per hand) - instead of single line JOB $5 (@ $25 per hand). Much less likely to generate a W2-G in either of the first two cases because even 5 royals on 100P 5-cent or one royal on 10P 50-cent will not be over $1K - but the results are statistically the same. In this example, on multi-line play, only a dealt SF or royal will generate a W2-G. Much less likely to occur for the same volume of play.
__._,_.___
Posted by: gamb00ler@yahoo.com
| Reply via web post | • | Reply to sender | • | Reply to group | • | Start a New Topic | • | Messages in this topic (16) |
Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.
SPONSORED LINKS
.
__,_._,___
