Bill to eliminate 25% tax

[karlskorner]

7/29/08

A bill introduced in the United States House of Representatives on Tuesday
would eliminate the 25% federal withholding on pari-mutuel winnings of
$5000 or more for bets that carry odds of 300-1 or more.

Representative Charles W. Boustany Jr. (R-Louisiana) sponsers the bill named
the Pari-Mutuel Conformity and Equality Act of 2008.

The withholding threshold has been unchanged in the Internal Revenue Code
since it was increased from $1000 to $5000 in 1992. Exotic wagering has
grown dramatically in that period.

"The negative impact of withholding is muti
-faceted" said Peggy Hendershot,
the National Thoroughbred Racing Assoc.'s senior vice president of
legislative affairs. "For the betting public, it has meant a confiscatory and
frequently unfair loss of available capital. That loss of reinvestment or "churn" leads to a reduction in overall wagering that in turn means less
revenue generated for state governments, racetracks, and purse money for
horsemen.

"Our industry and our fans applaud Congressman Boustany for introducing
this important legislaton and we look forward to working with our new
Horseplayers' Coalition to add support to this initiative"

[Bruddah]

because I hope it happens. However, this legislation is all "eye candy" and no substance or Chance in Hell of passing this Congress, or the next. If it does somehow pass, it would be a perfect example of Nero (Congress) fiddling while Rome burned.

This is the most corrupt, ineffectual Congress in my Lifetime. With the pressing problems facing this Country, there is complete Political gridlock. In other words, these SOB's are p*ssing me off.

In the "Cold War" era, we made fun of Russian politics because it was about the Communist Party. Their members swore allegiance to the PARTY over the needs of their Country. Hence, the fall of Communism. It is no better than these idiots (US Legislators) taking PARTY lines (Dem. & Rep.)

Swearing allegiance to the Party vs the country will lead to this Country's collapse.

[socantra]

Originally Posted by Bruddah

This is the most corrupt, ineffectual Congress in my Lifetime. With the pressing problems facing this Country, there is complete Political gridlock. In other words, these SOB's are p*ssing me off.

Thank you karlskorner, for the news about a bill that might well be of interest to people on this board.

[big frank]

hi all ,,, i have been playing along time ,, but just this year did i start playing exotics like pick 4s @ have been lucky 3 times this year when i went over the number and they withheld the taxes .. i was reading that i should get all of it back ,,,, but what type of records do i need to show losses ? i heard about picking up losing tickets but i heard you could just right down your record.. i am sure there are plenty of members here who hit big signers and how do you handle getting your money back at the end of the year ? thanks

[karlskorner]

I would think and hope the newly formed HANA and the other 2 handicappers groups should be all over this Congressman. It's a big step, if he can keep
it moving.

[BillW]

Just a note re. the title of this thread. This bill will not eliminate the tax on winnings, only the mandatory withholding when you cash the ticket.

[Pace Cap'n]

Originally Posted by big frank

hi all ,,, i have been playing along time ,, but just this year did i start playing exotics like pick 4s @ have been lucky 3 times this year when i went over the number and they withheld the taxes .. i was reading that i should get all of it back ,,,, but what type of records do i need to show losses ? i heard about picking up losing tickets but i heard you could just right down your record.. i am sure there are plenty of members here who hit big signers and how do you handle getting your money back at the end of the year ? thanks

First of all, you will need the services of a competent tax preparer. I would suggest a CPA.

Your winnings will be reported on Form 1040 as "Other Income". Your losses will be entered on Schedule A as itemized deductions. Losing tickets are deductible to the extent of your winnings. You should keep all pertinent records of the dates and amounts of your bets. Records may include losing tickets, marked-up forms and/or programs, or a printout from an ADW.

It is not advisable to scoop tickets off the floor. A sharp auditor can spot irregularities in betting patterns.

[BlueShoe]

This is a step in the right direction,but does not go far enough.At the very least,race track profits should be taxed as capital gains,not as ordinary income.Better still,make winnings tax free,but we are dreaming on this one;very little chance for tax free winnings becoming a reality.

[The Judge]

Mention footprints on discarded tickets

[big frank]

thanks

[JustRalph]

Originally Posted by BillW

Just a note re. the title of this thread. This bill will not eliminate the tax on winnings, only the mandatory withholding when you cash the ticket.

I was wondering why this seemed so important. I guess I would rather make them wait for the money. But this really doesn't do anything long term........you still have to pay.........unlike Canada

[BillW]

Originally Posted by JustRalph

I was wondering why this seemed so important. I guess I would rather make them wait for the money. But this really doesn't do anything long term........you still have to pay.........unlike Canada

99% of the players don't have to pay it. That is the issue - you have to wait for sometimes over a year to get your money back (via write offs that bring your winnings back to $0)

[JustRalph]

Originally Posted by BillW

99% of the players don't have to pay it. That is the issue - you have to wait for sometimes over a year to get your money back (via write offs that bring your winnings back to $0)

Everybody on PA is a winner...........don't you read the polls?

[trying2win]

[QUOTE=JustRalph]I was wondering why this seemed so important. I guess I would rather make them wait for the money. But this really doesn't do anything long term........you still have to pay.........unlike Canada[/QUOTE

Ralph:

As a Canadian, I can be smug about not having to pay any tax on parimutuel winnings. Unfortunately, our American bettor friends don't have the same benefit at present. If you sent an email to GLENN BECK, do you think he would he raise this issue on his TV program, and rake some of your congress representatives over-the-coals on this item?...(figuratively, that is).


T2W

[rrbauer]

Originally Posted by BlueShoe

This is a step in the right direction,but does not go far enough.At the very least,race track profits should be taxed as capital gains,not as ordinary income.Better still,make winnings tax free,but we are dreaming on this one;very little chance for tax free winnings becoming a reality.

Short-term capital gains ARE ordinary income!