Offsetting gambling losses against wins (taxed)

[Tico]

bj21abc: Just spoke with her - she couldn't really help.... She deals with Canadians mainly, as I understand, and that's an easy call - can definitely offset. She suggested I ask any US CPA... So I guess I am back to square one...

Back to square one? Not really. She did "confirm" indirectly the offsetting of losses against winnings, and she advised you to seek a U.S. CPA for further consultation. OK, a 3rd opinion can be obtained from CPAs in the tax&law forum through this link:
(Dead link: http://bj21.com/greenchip/law) _

_

To obtain a free password, click the link and apply for one:

Grasshopper, be patient, and soon you will be rewarded.

​

 

[bj21abc]

Yes, she did "indirectly confirm" offsetting losses against wins but that's a no-brainer for Canadian residents, which she deals with.... (as well as of course, US residents) - however, bj21 might be worth a go...

Back to square one? Not really. She did "confirm" indirectly the offsetting of losses against winnings, and she advised you to seek a U.S. CPA for further consultation. OK, a 3rd opinion can be obtained from CPAs in the tax&law forum through this link:
(Dead link: http://bj21.com/greenchip/law) _

_

To obtain a free password, click the link and apply for one:

Grasshopper, be patient, and soon you will be rewarded.

​

 

[Tico]

A brand new tax forum

Yes, she did "indirectly confirm" offsetting losses against wins but that's a no-brainer for Canadian residents, which she deals with.... (as well as of course, US residents) - however, bj21 might be worth a go...

There's one brand new tax forum also worthy for you to post your question there (i.e., Are gambling losses deductible on IRS Form 1041 for a Canadian gambler?).

To go to the brand new tax forum:

 

[Tico]

September 17th, 2010, 01:11 PM

Offsetting gambling losses against wins (taxed)


Hi,

this is a pretty obscure topic, am hoping someone might know, though...

If you're a US resident or a Canadian you can claim gambling losses against W2G wins. I am neither - on a J1 visa and will have to submit a 1040NR - can I offset gambling losses against wins ?

The decision as to whether to play VP hinges on this - if I am stuck with a 30% withholding on royals, I drop ~ 0.6% on EV...

Thanks

D.

Update...

Finally after 67 days later... an "official best answer" for the above question can be found in this link:

http://bj21.com/greenchip/law/index.cgi?read=5418
Yes, it's OK to offset losses against winnings!

A password can be obtained through this link:
https://secure.bj21.com/docs/landing/
​

 

[Billy C1]

Varies by states

State of residency is the big thing for US citizens. "Washing" losses against wins is no problem on the federal income tax form.
Some states (I think NV, FL and maybe some others) don't have a state income tax. My state and several others won't let us itemize losses on the state form but they sure as hell want their cut on the wins. I even talked with a state senator about this at one point and was told "that's just the way it is".
The only exception in my state would be to get a pro gamblers license # but even with that you have to show that your primary income is from gaming to make it work. Not possible for me.
Just another reason I'm itching to move to Vegas.

BillyC1

 

[bj21abc]

The bottom line is the same - unless you are American or a resident of one of the 20-odd nations engaged in gambling treaties with the US, and you are playing non-exempt game, you will be taxed on GROSS winnings.

This is fairly straightforwards and spelled out in IRS documents

Any non-resident aliens from non-treaty states should be aware of this - before playing VP, slots....

Update...

Finally after 67 days later... an "official best answer" for the above question can be found in this link:

http://bj21.com/greenchip/law/index.cgi?read=5418
Yes, it's OK to offset losses against winnings!

A password can be obtained through this link:
https://secure.bj21.com/docs/landing/
​