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Gaming Guru
Pay Your Taxes3 October 2020
As with your earnings from a regular job, you must also declare all winnings from gambling regardless of the amount. You need to have accurate records of your losses or you could be dealing yourself a real problem. If you want to deduct your gambling losses, you can only claim them to the extent of your winnings. For example, if you win $5,000 gambling and you lose $10,000, you may only deduct the $5,000. This differs from capital losses, which, unlike gambling, are viewed as investments. Internal Revenue Service Information: US Federal law requires all casinos to issue a W-2G for slot machines winnings of $1200 or more and $1400 or more for keno winners. However, ALL winnings are required to be reported by you when filing your annual income tax report. In fact, if you should hit that jackpot of $1200 or more on a machine, the casino will first ask for your name, address and social security number and a positive identification, then they will issue a W2-G. Normally no tax is taken out at the time of the winning; however, you will be asked to sign a statement that you will pay all the required taxes before they will dole out your winnings to you. Taxes for gambling: Only in the last few years could you claim yourself as a professional gambler. A laid off auto worker began playing at the race track to supplement his income. Later he did it full time as a living. He took the IRS to court (IRS Commissioner vs Groetzinger) when they wouldn’t recognize his new occupation and he won! You must keep very good records such as W2-G's, wagering tickets or receipts with dates, times and specific bets listed, canceled checks, credit records, bank withdrawals, and any receipts provided by the gambling establishment. You need all that if you want to consider this course of action when it comes time to pay your taxes. An excellent site to review gambling tax’s is: https://gamblersdailydigest.com/gambling-taxes. It has a very good article with lots of tax info., and some good links dealing with gambling and taxes. Pay your taxes, keep good records, and you will keep the tax collector off you back. IMPORTANT, I am not a tax attorney, just a player like you. I’m just passing along information I found! BET YOU DIDN'T KNOW • Taxes on European casinos can be extremely high; 50 to 90 percent, while US taxation on casinos runs between 6 to 8 percent. • There is a sales tax on most things in Nevada; however, there is no personal income, estate, franchise, utility, gift, inventory, inheritance or corporate tax on residents. • In 1950 Congress authorized the expenditure of US tax payer funds to open a casino in Travemunde, Germany under the provisions of the Marshall Plan for business recovery in Western Europe after WWII. It is still operating successfully to this day. • At the present time there are more than 80 countries in the world, outside of the US, that tax and regulate online computer gambling. • In 1990 Mansour Matloubi, an Iranian professional poker player living in the UK won $835,000 at the main event World Series of Poker at Binion’s Horseshoe casino in downtown Las Vegas. He was able to take it all back to England without any tax being taken out. The treaty with the UK exempts taxation on British citizens in the US. • In 1994, H & R Block, the nation’s biggest tax adviser, set up makeshift tax-preparation officers in four Nevada casinos and offered gamblers same-day “refund-anticipation loans.” • The US Treasury Department reported in 1814 that 400,000 decks of cards were manufactured that year with a duty-imposed tax of 25 cents per deck. • New Jersey’s 8 percent tax on casino gross revenues is devoted to programs that provide resources and services to disabled and senior citizens. • In 1823, New Orleans issued six “official” gambling licenses, which required each establishment to pay a tax of $5,000. Part of the revenue procured was devoted in 1825 to the support of the College of Orleans. • In Peru casinos pay a tax of 11.76 % on their monthly gross profit to the government. That tax is independent from 30% income tax on the casino’s annual profits. Lastly, a “value added” tax of 19% is also applied to casinos. This article is provided by the Frank Scoblete Network. Melissa A. Kaplan is the network's managing editor. If you would like to use this article on your website, please contact Casino City Press, the exclusive web syndication outlet for the Frank Scoblete Network. To contact Frank, please e-mail him at fscobe@optonline.net. Recent Articles
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