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Can I file as Professional Gambler?

Forum|Forum|3 years ago
January 12, 2023
6 replies
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I file" Married File Joint" return. My wife earned $39000 and has W2. I am tax preparer with CTEC.

My Gross income from tax business is $6500 and Net income is $209.00 after all expenses.

No other income other than Social Security and Pension.

For 2022 I received 3 W2G for total of $$9275. Lost well over $15000. I have spent approximately 510 hrs at Indian Casinos. I have proof of all mileage trips and hours spent at casinos on my cell phone.

Do you think I qualify to file as a professional gambler?

Any help will be appreciated.

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Best answer by Terry53029

Probable not. To qualify as a professional gambler – in other words, you’re in the business of gambling – you must show that you are legitimately engaged in gambling activities with the expectation of turning a profit. The IRS often contests these matters and usually prevails in the courts. In the latest example, a taxpayer who essentially lived at casino hotels ran out of luck (Boneparte, TC Memo 2015-128). Here is link: https://www.leagle.com/decision/intco20171002z09

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Terry53029

Answer

Intuit Community Champion

Probable not. To qualify as a professional gambler – in other words, you’re in the business of gambling – you must show that you are legitimately engaged in gambling activities with the expectation of turning a profit. The IRS often contests these matters and usually prevails in the courts. In the latest example, a taxpayer who essentially lived at casino hotels ran out of luck (Boneparte, TC Memo 2015-128). Here is link: https://www.leagle.com/decision/intco20171002z09

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singhAuthor

Level 6

Thank you, Terry, for your help. After reading through the materials you sent through the online site I decided not to file as Professional Gambler. Also IRS does not allow auto mileage.

I really appreciate your help.

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TaxGuyBill

Level 15

@singh wrote:

For 2022 I received 3 W2G for total of $$9275.

But how much actual accumulated winnings? You likely won much more than $9275.

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singhAuthor

Level 6

I did not keep record of winnings other than the W2G. I can guess $3000.00 in addition to the $9275.

IRonMaN

Level 15

I would say that all tax preparers should qualify to file as professional gamblers ---------- we all gamble that we are going to live through another tax season 😬

Slava Ukraini!

Camp1040

Level 10

What is the shaking my head emoji? It does not appear that either profession tax preparer or gambler is very profitable in the OP case.

George4Tacks

Level 15

via GIPHY

Answers are easy. Questions are hard!

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garman22

Intuit Community Champion

Yeah, I also believe the OP has winnings through his daily playing. Not just reportable W-2G's. Also, I believe I read somewhere that even on Sch C, you can only show expenses to income. I have no IRC to back up this statement though.