Online gambling and taxes
CC posted a link to the Wall Street Journal article "Online Gambling Poses Tax Problem."
It's a certainly interesting question -- can you deduct losses from online gambling? But the article really backs into the issue saying that it seems OK for federal taxes but it's unclear for state, since you have to check on state laws.
And, it even adds the preachy, "And for now, stop gambling online because your bank may start rejecting your deposits as of Dec. 1, unless, of course, enforcement is delayed for a year."
Hmmm.
It's a certainly interesting question -- can you deduct losses from online gambling? But the article really backs into the issue saying that it seems OK for federal taxes but it's unclear for state, since you have to check on state laws.
And, it even adds the preachy, "And for now, stop gambling online because your bank may start rejecting your deposits as of Dec. 1, unless, of course, enforcement is delayed for a year."
Hmmm.
posted by kurokitty at
1:12 AM
6 Comments:
I've learned from an accountant that you can file as a professional in most states where you can't deduct your losses the old-fashioned way. Filing as a professional allows you to net your wins and losses, avoiding state laws prohibiting loss deductions.
By
Gnome, at 5:54 AM
I read the post you linked to. Suppose you won $50,000. If you request a withdrawal and put it in your bank, of course it's income.
What if you win $50,000, but leave it in your online account. Is it then income? On first thought, I would say yes, but maybe that's not so clear. If you own stocks that appreciate, it's not income until you sell them, right?
If you play in a casino, your session ends when you take your chips to the cashout desk. Could the point be made that online poker is one long session until you withdraw money?
By
Memphis MOJO, at 12:00 PM
Memphis MOJO,
The IRS considers all earnings to be income, whether you withdraw it from an online site or not. It's income the moment you win it, and the government doesn't care when it hits your U.S. bank account.
By
Gnome, at 3:02 PM
That's especially true since recently the IRS has said that online accounts are similar in treatment to offshore accounts.
By
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