At considerable risk of beating a dead horse, what I wanted to clarify was that the point of the thread wasn't to avoid reporting gambling activity in the stipulated manner. I don't think anyone was suggesting that they were seeking "to avoid reporting profit" (or for that matter, reportable winnings even in absence of a net win).
So, your original post, while accurate, wasn't exactly to point re the thread subject. (That's not to say that it wasn't an appropriate observation, generally speaking).
To capsulize, the thread noted that with fewer people finding it beneficial to itemize deductions, being issued a w-2g will likely result in a tax liability that would not have been incurred were they otherwise filing a Sch A (to the extent that deductions, including offsetting gaming losses, are less than the standard deduction). For this reason consideration might be given, where feasible, to play at lower multi-line denominations, where w2-g incidence can be expected to be smaller (just to emphasize, no consideration of "avoiding reporting a profit").
It's respeciable advice and doesn't represent tax evasion any more than year-end "tax harvesting" of investments does. It's merely a strategy that legitimately reduces tax liability.
btw, not to minimize your point about the benefit of session reporting, I'll note that my interpretation of the session rules are such that any transaction that results in the redemption of credits for cash constitutes a session break. As such, being issued a w2-g with cash payment will require accounting for a session at that point, reducing the opportunity for offsetting "session" losses later in the day. (I haven't seen this "take" validated elsewhere, but I find it consistent with the logic of session reporting. You're welcome to take it with less than a grain of salt ;)
---In vpFREE@yahoogroups.com, <bobbartop@...> wrote :
Ok. I didn't say I like how it's reported, or how the adjusted gross income is used, but even if I don't get W-2Gs I'm still going to keep records and report what they consider winning sessions. The whole system seems convoluted to me but I want to do what the IRS wants. And then I'm going to itemize, the standard deduction doesn't help me. And I probably would not play video poker in one of the several states that doesn't allow losses deducted against wins. That's crazy. Thankfully I don't live in one of those.
---In vpFREE@yahoogroups.com, <harry.porter@...> wrote :
---In vpFREE@yahoogroups.com, <harry.porter@...> wrote :
---In vpFREE@yahoogroups.com, <bobbartop@...> wrote :
W-2Gs or not, you're supposed to pay income tax on income. Playing for stakes that does not generate a W-2G is not an excuse to avoid reporting profit.
True, but recall that what's at issue is the requirement to report W-2G's as gross winnings, even in absence of a net casino win, for those without sufficient deductions to warrant filing a Sch-A (not avoiding income tax on actual net winnings).
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Posted by: harry.porter@verizon.net
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