Quote:
Originally Posted by HalvOnHorseracing
Considering the dozens of times I've had to include winnings and losses in my tax filing, I know exactly how you report. I've been audited on my gambling winnings a few times. I'm up $34 lifetime with the IRS.
I should have said, regardless of how the IRS defines it, gambling winnings are exactly what they sound like - collections minus losses. If the wants to eliminate the deduction for losses, then they ought to change the term to "Gambling Collections" because that would be accurate.
And I also said that regardless of where you report losses, I'd question calling losses a personal deduction. I understand what the IRS calls it. I'm simply saying it is inaccurate. It is an inseparable part of Gambling Winnings.
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For the last time I will tell you that you are wrong. "Gambling Winnings' are reported on line 21 of the 1040 and in almost all cases do not include any offset
In business parlance you might refer to this as top line revenue. The bottom line figure is derived after line 40 incorporates schedule A. Where gambling losses are entered. My tax returns of the last 40 years have incorporated "certain gambling winnings" that far exceed $50 million. I am quite versed in the process. Audits are not a problem when IRS rules are complied with.
