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Originally Posted by Gallop58
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Of all the tax ripoffs facing horseplayers this one would have to be the furthest down the list of importance.
Let's see. A whale bets $5000 on a P-6 and only gets back $150,000. He has won $145,000 but because of the new proposed rule there is no reporting requirement because the bet wasn't over 300-1 on the total amount bet. That is absurd. You on the other hand could hit a superfecta by betting only $1 and get back $5,002 and have to face reporting and withholding.
My solution to the problem is simple. If you want to avoid withholding you must bet through an account. Withholding would only occur if your account shows you to be a net winner of $5000 or more. So for example, let's say you won $50,000 in January. Your account administrator would restrict you from withdrawing funds that would be needed for withholding. If in the next 3 months you proceeded to lose $50,000 there would be no reason to have withholding on the account. Problem solved.
