Ask the Slot Expert: To deduct slot losses, don't rely on a win/loss statement

John:

The casino win/loss statement is NOT an acceptable document for the IRS at tax time. Casinos vary on their methodology for capturing customers win/loss. There are no accepted standards for the casinos to follow and thus the results vary from casino to casino.

The acceptable form of win/loss statement is for the gambler to record his money into the game, time played per session, and money out. Also the player must record the casino name, address and phone number. It is also wise to note the machine type and its ID number. Same applies to table games, table number, game etc.

I personally record mine upon returning home on an Excel spreadsheet and keep them for tax purposes at year end. In audits I have not been challenged.

John

Dear John,

Thank you for pointing out that IRS wants you own contemporaneous account of your winnings and losings and not the casino's.

From Topic 419 Gambling Income and Losses on the IRS website:

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.

Best of luck in and out of the casinos,
John

Send your slot and video poker questions to John Robison, Slot Expert, at slotexpert@comcast.net. Because of the volume of mail I receive, I regret that I can't reply to every question.