Can I file as Professional Gambler?

[singh]

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.

[Terry53029 · Accepted solution]

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  

[TaxGuyBill]

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@singh wrote:

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

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

[IRonMaN]

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 😬

[Camp1040]

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]

via GIPHY

[garman22]

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. 

[Just-Lisa-Now-]

Just because you have a gambling addiction, doesn't make you a professional.

[George4Tacks]

@singh This seems to cover what you need to do to CYA https://www.levytaxhelp.com/how-to-minimize-taxes-from-gambling-activities/

[singh]

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

[singh]

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.

[singh]

Sorry. IronMan. I don't regard tax preparation as gambling. 

[singh]

Thank you, George4Tacks, for your help. The article was of help.