the session method or any other method as long as you get the same net win
for the year. So I guess I'm confused about why that would matter.
Cogno
> -----Original Message-----
> From: vpFREE@yahoogroups.com [mailto:vpFREE@yahoogroups.com] On Behalf
> Of denflo60
> Sent: Tuesday, February 9, 2010 6:42 PM
> To: vpFREE@yahoogroups.com
> Subject: [vpFREE] Re: 1099's
>
> Jan: Since I started filing as a recreational gambler some years ago I
> used the session method and was never audited. I reported based on the
> session length of a day because of the "churn" of the machines. To me
> the bigger question is the precise definition of a session.
> When I started betting significant money and filed as a professional
> with schedule C, I continued using the session method. Given that the
> Casino supplies the total of my accrued W2G's, I have used the daily
> session method because it agrees with the W2G submission. I do have
> complete contemporary records of all $1200.+ wins from the attachments
> of the Casino W2's which can be tied back through time of day of the
> "hit" to my records. I survived the 2006 audit about using Scedule C
> but what never directly asked about session method or length. As I
> have reported here and you responded I have faced the same issues for
> the 2007 year and I, my accountant and my lawyer will fill out paper
> work to to request the matter be taken to tax court. Whether the
> session method or session length comes up at that time I do not know,
> we are prepared to defend it and its length. Of course whether I win
> or lose will be not known for some lengthy period. Denny
>
> --- In vpFREE@yahoogroups.com, "Jan Spornhauer" <janspornhauer@...>
> wrote:
> >
> > I would like to know of anyone has tried to use daily session win VS
> using
> > the W2G as income. It seems to me this is a more fair way to report
> gambling
> > income but maybe the IRS doesn't look at it that way. Unfortunately,
> a
> > taxpayer who has any substantial W2G receipts and has equal losses is
> in the
> > end paying more income tax.
> >
> >
> >
> > The Gambler
> >
> > _____
> >
> > From: vpFREE@yahoogroups.com [mailto:vpFREE@yahoogroups.com] On
> Behalf Of
> > tsaimitch
> > Sent: Tuesday, February 09, 2010 1:51 PM
> > To: vpFREE@yahoogroups.com
> > Subject: [vpFREE] Re: 1099's
> >
> >
> >
> >
> >
> > You can deduct losses on Schedule A, or file as a professional
> gambler with
> > Schedule C.
> > Might be able to use "Session wins" rather than 1099s as you wins,
> but I
> > hear conflicting info on this board.
> >
> > See http://groups.
> <http://groups.yahoo.com/group/vpFREE/message/104962>
> > yahoo.com/group/vpFREE/message/104962 for some problems with Schedule
> C.
> >
> > http://www.readybet <http://www.readybetgo.com/book-reviews/review-
> 606.html>
> > go.com/book-reviews/review-606.html
> >
> > How To Turn Poker Playing Into a Business (Knowing What to Deduct to
> Improve
> > Your Odds With the IRS) by Ann-Margaret Johnston (122 pages,
> paperbound,
> > $19.95) and The Tax Guide for Gamblers by Roger and Yolanda Roche --
> Sixth
> > Edition (64 pages, paperbound, $29.95). Both are excellent references
> and
> > both are available at Gambler's Book Shop in Las Vegas.
> >
> > http://www.casinoga
> <http://www.casinogaming.com/features/taxlaws.html>
> > ming.com/features/taxlaws.html
> >
> > All winnings from all forms of gambling are taxable and must be
> declared as
> > income on your tax return.
> >
> > All losses from all forms of gambling are deductible as an itemized
> > deduction for recreational players, limited to the amount of winnings
> > declared.
> >
> > Professional gamblers hold file as a self-employed business using
> Schedule
> > C.
> >
> > The value of "comps" received are considered to be gaming winnings
> and
> > should be included in your total winnings. This does allow you to
> deduct
> > gaming losses to offset the income from the "comps."
> >
> > Wins and losses are reported only in the year they occur. Excess
> losses
> > cannot be carried forward or back to offset winnings in other years.
> >
> > Married couples filing a joint return must combine their winnings and
> > combine their losses, and report only one figure for each.
> >
> > The IRS has issued instructions that "lumping" is unacceptable.
> "Lumping" is
> > the practice of reporting one net win figure and no losses, or
> reporting
> > nothing if your net from gambling is a loss. You must report the
> total of
> > your winning sessions separately from the total of your losing
> sessions.
> >
> > The IRS requires that an accurate diary or similar record must be
> maintained
> > for substantiating your wins and losses, and that the diary should
> contain
> > at least the following information: (1) the date and type of your
> specific
> > wager; (2) the name of the gaming establishment; (3) the address or
> location
> > of the gaming establishment; (4) the names of the other person(s), if
> any,
> > present with you; (5) the amount(s) you won or lost.
> >
> > The IRS also requires that in order to substantiate your diary,
> supplemental
> > records are required, including the following (these records are not
> to be
> > submitted with your return, but will be needed should you be
> audited): (1)
> > W-2Gs; (2) wagering tickets or receipts; (3) canceled checks; (4)
> credit
> > card records such as cash advances; (5) bank withdrawals; (6) any
> receipts
> > provided by the gambling establishment.
> >
> > KEEP RECORDS OF YOUR GAMBLING TRANSACTIONS
> >
> > In February of 1998, in a case involving an unemployed gambler who
> failed to
> > file timely returns for two years and kept no records, the Tax Court
> ruled
> > that the gambler could not deduct unsubstantiated gambling losses. In
> > addition the Tax Court upheld the IRS which had levied additional
> amounts
> > for failure to file on time and for the accuracy-related negligence
> penalty.
> > This increased the gambler's tax liability by 43%!
> >
> > In other words, they threw the book at this gambler, who actually
> told the
> > court that although he maintained a gambling log for one of the years
> in
> > question, it was not accurate because it was too time-consuming to
> make it
> > precise.
> >
> > If you are collecting W2-Gs and not keeping accurate records, this
> very well
> > could be in your future.
> >
> > <many more details on the webpage>
> >
> > http://www.irs. <http://www.irs.gov/taxtopics/tc419.html>
> > gov/taxtopics/tc419.html
> >
> > You may deduct gambling losses only if you itemize deductions. Claim
> your
> > gambling losses as a miscellaneous deduction that is not subject to
> the 2%
> > limit on Form 1040, Schedule A (PDF). However, the amount of losses
> you
> > deduct may not be more than the amount of gambling income reported on
> your
> > return. It is important to keep an accurate diary or similar record
> of your
> > gambling winnings and losses. To deduct your losses, you must be able
> to
> > provide receipts, tickets, statements or other records that show the
> amount
> > of both your winnings and losses. Refer to Publication 529,
> Miscellaneous
> > Deductions, for more information.
> >
> >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>
>
>
> ------------------------------------
>
> vpFREE Links: http://members.cox.net/vpfree/Links.htm
>
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>
>
>
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