I suppose if your winnings are relatively small you could do this. If you actually make real money from gambling idk how you pull that off
Sports Betting Arbitrage - Taxes
- Thread starter Cyclonefan710
- Start date
Very easily.
Oh I made $54k in earnings? No I didn’t. I broke even.
Here’s the list of all my atm withdrawals that add up to over $54k. Here’s my win loss report from the various casinos all showing I lost money. Here’s my daily tracking sheet of my win loss.
All of those are acceptable.
that's not true. If you win over a certain amount on any one pull they give you a 1099 for that win amount.
I think table games are the only thing in a casino that work that way.
But a 1099 for online is based on the entire year and not each bet, correct? I've never had the pleasure of wagering enough to have a 1099 created from sports betting, so I'm not not sure how that actually works.
You'll only get a W2G (single wager win) when the winning is $600 AND is at least 300 times the bet. (Different rules for slots and whatnot but trying to keep it easy)
I guess I’m confused. In your scenario you made $54k net profit but all the casinos report you lost money. Seems like I’m that scenario you didn’t actually make money
I have a few clients who gamble a lot, like are at Prairie Meadows it seems like every other day. One had $195k in winnings offset by a $195K loss = no taxable gambling income and they get back what Iowa withheld for State taxes.
No, in that scenario you have 54k in reported winnings NOT profit. Reported winnings is over a certain threshold and given to the IRS. There is no reported loss form when I bet $1000 on a hand of blackjack and lose but the casino tracks that. And you are required by law to track it. And you can prove it any number of ways.
Here’s a real world example that happened while I was in Vegas for the UNLV game and had to do tax stuff with.
I hit a jackpot on Keno and won $1750.
They gave me a W2G form (after writing down your social and signing a paper) with what I won and the machine number and the attendant etc. They can remove any percentage you want for fed taxes. Then they give you cash or a check for the amount and you gotta keep that form for tax season and report it under “other income”.
But what that form doesn’t say is that I gave all that money back the subsequent days gambling. I have to report that loss. I can prove that with a few atm transactions with the name of the casino on the transaction.
Boom $1750 in winnings + $1750 in losses = $0 winnings and no tax liability.
Also remember you only have to prove if you get audited but I have a folder of ATM transactions saved by year just in case plus I have an excel I track my win/loss personally.
I understand how the taxes work. I took from the post that even if you made profit to just write it all off and figure out how to explain it later if audited. If you aren’t actually making money I get the approach
Winner, winner!!!!!!!!!!! I've never had a client who didn't offset their gambling winnings with the same amount of loss.
I made $200k profit last year gambling, you're saying that you as a tax preparer would recommend I lie?
I'm not recommending anything, you do what you want, I was just giving examples from my experience.
I'm just saying what I've seen from my clients. But personally I would have no problem doing it myself if I gambled.
you might consider treating it as business income if you're doing it enough to make that much money. Then you'd also be able to deduct other related business expenses (travel, hotels, computer expenses, etc)
Get an LLC, file the form 2553 S election to be taxed as s corp to avoid self employment tax.
If you don't normally have years like that it's not worth the hassle.
Every gambler who has reported winnings over the standard deduction threshold has gambled enough to know how to prove they lost what they’ve won.
The only time you’re gonna struggle is when you hit 7 figure plus winnings.
I don’t travel I bet sports online. I’d give it another 6-12 months before I’ve exhausted all my outs and then I’ll just stop.
