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Excellent news for lots of players.
Although it only affects a very tiny percentage of players, they now need to allow players who file as a business to carry over wagering losses from one year to the next, which is allowable with more traditional businesses.
For those who do not know, here is how the current inequity works for those involved in a gambling business:
Say in 2016 one's net wagers result in a $5,000 loss.
Say in 2017 one's net wagers result in a $5,000 win
In a "traditional" business the $5,000 loss in 2016 could be carried over to offset income in 2017, so the business would have no tax liability in 2017 (from the wagering activity portion) because the entire amount was offset.
A Gambling business under the same scenario would not be able to carry any losses over from 2016 and thus have a tax liability on the entire $5,000 wagering profit amount from 2017. As someone who we all know might tweet: "So Unfair!"
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