New Regulations For Tax Withholding Passed

[therussmeister]

Originally Posted by VigorsTheGrey

Yes, the way I understand it, your winnings are reportable but nothing is withheld at the time of cashing. The net proceeds are still taxable. Am I wrong here...?

Winnings are not reportable in example given. All net proceeds are taxable. If you bet $2 to show and collect $3, that is taxable.

[AndyC]

Originally Posted by LemonSoupKid

I'll give another hypothetical: We go to the Breeders Cup. The $1 pick 4 pays $13k, which I cashed on a $1 ticket wheel with 72 combos. Since this is less than $21,600 + 72, the teller hands over $13k cash. Does anything else happen?

No.

[Ian Meyers]

1. Anything at odds of less than 300-1 is NOT reported. The "1" considers that amount of like wagers into the race/pool. e.g. You play a $48 PK4 in 1 wager and a $24 PK4 in another (same track/race). IRS won't be notified unless payout is >= $21,600. If it pays $20k you cash for $20k. If it pays $22k you pay immediate withholding on $22k ($5,500).

2. Law states same pool/same race. At ADWs all of your same pool/same race bets will count as your basis. At the track it's ONLY the same physical ticket. If you get 3 different wagers on the one ticket that's your basis. If you have separate paper tickets for the three bets the one that wins will determine your basis.

[thaskalos]

Originally Posted by therussmeister

Winnings are not reportable in example given. All net proceeds are taxable. If you bet $2 to show and collect $3, that is taxable.

What if you are down $500 for the day...when you collect that $3 payoff?

[LemonSoupKid]

Originally Posted by Ian Meyers

1. Anything at odds of less than 300-1 is NOT reported. The "1" considers that amount of like wagers into the race/pool. e.g. You play a $48 PK4 in 1 wager and a $24 PK4 in another (same track/race). IRS won't be notified unless payout is >= $21,600. If it pays $20k you cash for $20k. If it pays $22k you pay immediate withholding on $22k ($5,500).

2. Law states same pool/same race. At ADWs all of your same pool/same race bets will count as your basis. At the track it's ONLY the same physical ticket. If you get 3 different wagers on the one ticket that's your basis. If you have separate paper tickets for the three bets the one that wins will determine your basis.

Yes, thank you. Finally people get to walk away from all the taxes that were stolen from them, for all those years. Or at least re-wager it that day.

[LemonSoupKid]

Originally Posted by thaskalos

What if you are down $500 for the day...when you collect that $3 payoff?

I also love the idea that if you hit a multirace one year huge and it was the first time in 5 to 10 years, you can't write that off against prior losses. You gotta hit or lose multiple horizontals in the same year, lol

This is basically the proof that taxing this stuff is a fraud in the first place. Beyond the fact that the gov't is 21 tril in debt, and horse racing winnings account for .000000001% of not only that, but the yearly national budget, lol

Lemme guess guys, someone will be asking, "Who's gonna pay for the horse racing tax break?"

SMH as if collecting taxes are the problem in the country, unbelievable

[sjk]

Caught one yesterday that benefitted from the new rule. Winners have been somewhat scarce for me the last few months so this one was very nice to have and better that it will not be burdened with a 1099.

[mabred]

anyone know if sportech is in compliance with this new regulation yet??

they have twin river casino and when i asked a manager there he said

he had no infoYET !!!they also have plainridge casino but i haven't been there in years.Also hollywood races.com AWD


thanks

mabred

[LemonSoupKid]

Originally Posted by sjk

Caught one yesterday that benefitted from the new rule. Winners have been somewhat scarce for me the last few months so this one was very nice to have and better that it will not be burdened with a 1099.

Love hearing that. Let's hope it also happens during the BC

[DGroundhog]

Originally Posted by mabred

anyone know if sportech is in compliance with this new regulation yet??

they have twin river casino and when i asked a manager there he said

he had no infoYET !!!they also have plainridge casino but i haven't been there in years.Also hollywood races.com AWD


thanks

mabred

I would talk to another manager or ask them to GET that info. All they have to do is call Sportech if nobody at the casino knows for sure (unlikely if there is even a single competent person at the casino). You can and should get an answer in less than 5 minutes.

[mabred]

they are good to go !!!

mabred

[QuarterCrack]

Question, I'm wagering at a facility that has not yet implemented the new IRS rules, and I hit a tax ticket; would it make a difference if I wait until after November 15th to cash it, or is it based on the date the bet is made, not the date of cashing?

[AlsoEligible]

Originally Posted by QuarterCrack

Question, I'm wagering at a facility that has not yet implemented the new IRS rules, and I hit a tax ticket; would it make a difference if I wait until after November 15th to cash it, or is it based on the date the bet is made, not the date of cashing?

I would talk to management at the facility. I know that while several tracks were waiting for their totes to implement the new rules, they were still honoring them. Clerks would figure out at the window if a ticket should be eligible for reporting/withholding, and if it wasn't, they just pay out the full amount.

If you've already done that and the facility simply isn't honoring the new rules until November 15th, then unfortunately it won't matter when you cash it. The rules apply to whatever date the ticket was sold/priced, not when it is cashed.

[AstrosFan]

Originally Posted by QuarterCrack

Question, I'm wagering at a facility that has not yet implemented the new IRS rules, and I hit a tax ticket; would it make a difference if I wait until after November 15th to cash it, or is it based on the date the bet is made, not the date of cashing?

Cash away, but the fact of the matter is that the IRS isn't going to penalize you (come tax time) even if the track makes you sign for it, when the new rule is already in place. The lazy ass track mgmt. officials need to implement this when it took effect, not Nov. 15 for a "deadline"

[AstrosFan]

Originally Posted by LemonSoupKid

If you cash a 20k ticket which had a base of $100, they pay you 20k and you walk away, right? Let's be real, this is basically what people want to know.

Correct b/c in the new tax rules, that ticket would have had to pay $30,000+ for it to be considered a "signer"

$100 base x 300-1 = $30,000