For many, gambling holds a unique allure. Whether your game is black jack, craps, slot machines, pai gow poker, or another game, the allure of gambling can be exciting. The excitement and anticipation of winning can be exhilarating and the disappointment of losing can be devastating. All gambling income, no matter how small, is taxable income.
You can take a loss for your gambling losses but only to the extent of your winnings for the same year. For example, if you lost $40,000 the year and your winnings are $30,000, you would only be allowed to deduct $30,000 in losses. If you have $40,000 winnings and $30,000 in losses, you would have $10,000 in taxable income. If you have no winnings but $30,000 in losses, you would not be able to deduct your losses.
You as the taxpayer have the burden of proof to substantiate your gambling income and losses. To meet your burden of proof, you must have a log (or similar record) which...
50% Complete
Just two quick steps to make sure you are up to date with the most current information available.