This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Winning Gamblers Still Lose If They Don't Keep Track for Taxes

Just as people uses their car for business must keep a record of business mileage, a gambler must keep a record of daily activity. A simple pocket notebook will do. You would indicate the date, location, names of casinos visited and the net activity from each casino for each type of gambling activity for the day.

You must keep a separate recording of each type of game being played at each casino (for instance, slot machine and table games such as blackjack and poker), reporting the net activity from each game. In the case of a table game, the reporting requirements state that you must also make a note of the table number.

Say you play slots for an hour and blackjack for an hour. Each must be reported separately in your log. All of the slot play is netted; all the blackjack play must be separately netted. Losses from one game could not reduce net reportable winnings from another game, even if they occurred in the same casino on the same day.

If I won net $1,000 in blackjack and lost net $500 in slot play from one visit to Bally's I would need to report $1,000 on Page 1 of the Form 1040, but I could deduct $500 as losses on Schedule A.

When you enter a casino keep your gambling money separate -- in separate pockets or separate envelopes, and one for each gambling activity (for instance, slot machines and table games).

Let's say you spend a weekend in Atlantic City. On the morning of July 16 you began your gambling at Bally's Wild West on the Boardwalk. Make the following entry in your notebook:

7/16/2013 -- Atlantic City, N.J.
Bally's Wild West -- slot machines
Beginning cash = $200
Start time: 10 a.m.
End time: 1 p.m.
Ending cash = $315
Net win/(loss) = $115

You may have win $1,300 in one slot pull while at Bally's on July 16, but you put $1,185 back into the machines before leaving the casino. So instead of $1,300, as appears on the Form W-2G you got from Bally's, you would include only $115 as actual gambling winnings on Line 21 of your 1040.

On the same day you also gamble at Caesar's Palace. You would make the following entry:
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TSLA $248.10 -0.15%
YHOO $32.59 -1.70%
AAPL $112.26 -0.91%
FB $89.82 -1.30%
GOOG $628.87 -0.24%

Markets

Chart of I:DJI
DOW 16,477.12 -165.89 -1.00%
S&P 500 1,974.52 -14.35 -0.72%
NASDAQ 4,803.5960 -24.7290 -0.51%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs