Discussion:"Professional Gambler" wins tax appeal in MN
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Discussion Forum Index --> Tax Questions --> "Professional Gambler" wins tax appeal in MN
| May 18, 2006 | |
| Interesting...
http://www.startribune.com/462/story/439347.html Link was in this paper 5/18/06, so I aplogize if it is onto available after this date.. | |
| 18 May 2006 | |
| I can't speak for MN, but in general (and in specific in regard to Nevada) the article mis-states profit motive. Casinos will typically disclose slot machine odds on request and most will offer incentives to volume players. The combination in the case of certain video poker machines (where the disclosed odds reflect perfect play) can actually give the gambler a two to four percentage point advantage. | |
| 18 May 2006 | |
| If you do know how to play video poker perfectly and are winning regularly, can the casinos kick you out of the casino in the same way that they kick out suspected card counters in Black Jack? | |
Www.cpa1.biz (talk|edits) said: | 18 May 2006 |
| Hey Almanacers,
This case may do a lot of harm to the IRS for professional gamblers. I guess you can say if you can craft something and try to make money at it so be it and make a business out of it. Well, if someone decides to make this a business and deducts losses more than their gain just to gamble and take a shot of being a professional gambler then they can use this case if they ever get screwed by the govt by deducting more than they won. This case could be a big ugly move into more young or old people stepping up and trying to be a professional gambler. I think this case should have been revoked. What do you all think? www.cpa1.biz | |
| 18 May 2006 | |
| Actually the important recent case is Castagnetta. For those of you interested in professional gambling, see Tax Tips for Gamblers
Warren, casinos like winners. They bring in losers. From what I've been told, playing video poker perfectly for short stretches of time is a lot easier than trying to do it 8 hours a day. I know one person who played $4,000,000 worth of quarters in a year for about a $9,000 profit. (subject to SE tax). | |
Www.cpa1.biz (talk|edits) said: | 18 May 2006 |
| Dennis,
I have some questions on this: First, if someone decides to actually be a professional poker play, then can they deduct expenses more than their revenue if it is incurred. I am basing this now on the Minnesota case and on the Castagnetta case. Second, if someone is not a professional poker player but incurs costs such as fees, supplies, and M&E, then can they deduct that on the 2106 nonreimursed expense list. I am basing this on the article you enclosed in point 10. What do you think? www.cpa1.biz | |
| 18 May 2006 | |
| I know of no-one who has ever been allowed a loss. However for winners, all expenses are good, including tipping the dealer. The IRS will generally follow strict interpretation of Groetzinger, which means you need to establish "full time". Some set up S corps or LLC's.
Gamblers do not expect to lose, so status is mostly for protection against adverse tax treatment -- AMT, itemized deduction reduction and limitations. | |
