10-14-2010, 12:53 AM
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#11
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Veteran
Join Date: Jun 2009
Posts: 832
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Quote:
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Originally Posted by Spiderman
There is an extreme disadvantage for horse players who do not file Schedule A. In 2008, I hit $3,000 with two 'signers'. IRS requires that you file losses, up to winnings on line 28, Schedule A. Problem is that this disqualifies use of standard deduction of $5,450. Also, I do not have sufficient deductions to equal standard deductions.
Winning is losing! Unless, you win very big. By winning 'signers' for less than the standard deduction, you lose. You may also lose more if the standard deduction would have alleviated your tax reporting.
I know that this method of filing losses v. winnings was not always the case. When was this put into effect? The racing industry will lose a considerable amount of handle if more people decide to stop betting because winning will cost them more when filing taxes.
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If you're at the track maybe a 10%er is the way to go.
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