[vpFREE] Re: Tax Consequences was FSP strategy ideas

When I scan the digests, I see a lot of things put out there without the
proper warnings such as playing for the highest % return without regard to
the variance of the game will do to your bankroll. Using Schedule C is one
of those items that should have a warning label when applied to gambling.

I filed Schedule C for a consulting business which ran concurrently with my
gambling for about 10 years but I never included any gambling expenses on
a Schedule C even though I was well aware of what I could deduct. Even
though I had years where I had a level of activity which probably exceeded the
throughput of some pros and I'm sure I could have passed the material
participation tests for those years, I never claimed expenses under Schedule C.
When I started gambling in 1994, a goal was to quit when it turned south so
I was never sure how long or how active I would be. I was also unsure of
meeting the material participation tests over time (3 years & 10 years)
since you don't know if you're going to have periods of relative inactivity.
(Looking back, I could have met the tests.) However, if I only filed Schedule
C only when I needed the deductions that would set off red flags which I
didn't want.

For part-timers, filing Sched C as a professional is a course that ought to
considered carefully especially if you have another source of income that
involves a significant amount of your time. Early in my career I had the
good fortune of working for several corporations which empasized the goal --
GET A GOOD NIGHT'S SLEEP. I've never regretted the extra taxes I've paid.


In a message dated 1/25/2012 7:31:46 A.M. Pacific Standard Time,
vpFREE@yahoogroups.com writes:

_Re: Tax Consequences was FSP strategy ideas _
(http://groups.yahoo.com/group/vpFREE/message/119052;_ylc=X3oDMTJzazFtZHNiBF9TAzk3MzU5NzE1BGdycElkAzQ2NDE
wMTcEZ3Jwc3BJZAMxNzA1MDY1NzMyBG1zZ0lkAzExOTA1MgRzZWMDZG1zZwRzbGsDdm1zZwRzdGl
tZQMxMzI3NTA1NTAw)
Posted by: "kcace1024" _cy4873@hotmail.com _
(mailto:cy4873@hotmail.com?Subject= Re:%20Tax%20Consequences%20was%20FSP%20strategy%20ideas) _kcace1024 _
(http://profiles.yahoo.com/kcace1024)
Tue Jan 24, 2012 8:48 pm (PST)

I find it a little strange that Rob Singer has no idea of the tax
consequences of W-2s. Of course, you can avoid the AGI problem if you file a Sched
C as a professional gambler, but this is not allowed by the IRS for
everyone who plays negative games and even for most APs.

[Non-text portions of this message have been removed]

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