Fishhead? Tax question-

Whoson1st · Jan 17, 2007

For information only:

Let's say a Player had only ONE Book and only one payment/deposit method (Neteller) for 2006. At the end of 2006, the player had $0. in both the book and $0. in Neteller.

During 2006, the player made numerous checking deposits to Neteller for a total of $5,000.
During 2006, the player received from the book (via Neteller) a total of $5500. to his checking.

On line 21 must the player report $500. or $5500?
In other words can the player subtract his deposit?

If the player has to declare $5500 on line 21 than the player is screwed because he has no record of all loosing wagers. The player does not have enough itemized deductions to equal the standard deduction.
Thanks
Who

WVU · Jan 17, 2007

you only need a diary of losing wagers. Fake it if you must.

Whoson1st · Jan 17, 2007

WVU said:
you only need a diary of losing wagers. Fake it if you must.

So deposits are considered part of the winnings , when they are received.

Whoson1st · Jan 17, 2007

Ok- Is this what must be done.?

Line 21--Claim Income of $5500. (Bank income from Neteller)

Then on a seperate schedule (maybe schedule C,not sure the name) claim losses- DEPOSITS(--whitch are obvious through bank record) of $5000.
(My own depsoits become income)
I still lose the standard deduction.
Doesn't seem fair , but is that what I must do?

bigbet1234 · Jan 17, 2007

Pay a few bills and have a CPA do it correctly. Money well spent

Fishhead · Jan 17, 2007

Whoson1st said:
Ok- Is this what must be done.?

Line 21--Claim Income of $5500. (Bank income from Neteller)

Then on a seperate schedule (maybe schedule C,not sure the name) claim losses- DEPOSITS(--whitch are obvious through bank record) of $5000.
(My own depsoits become income)
I still lose the standard deduction.
Doesn't seem fair , but is that what I must do?

As WVU pointed out, you need an accurrate diary of your WINS and LOSSES............the WINS go on LINE 21 and the losses, up to your winnings, can than be deducted.

So in your case you may have as an example something like 33,000 in winnings and 32,500 in losses............paying tax on the $500.

Fishhead · Jan 17, 2007

What many fail to realize is that a DIARY is actually MORE important in more total aspects for an individual that is filing a tax return that involves gambling related income.

Whoson1st · Jan 17, 2007

So to be totally SAFE--I have to do what I did last year and get royally screwed?
That is simply claim winnings($5500) (receivings actually) on line 21 and forget losses.
I got screwed big time last year this way!!
I think I'm finished with offshore.

Fishhead · Jan 17, 2007

Whoson1st said:
So to be totally SAFE--I have to do what I did last year and get royally screwed?
That is simply claim winnings($5500) (receivings actually) on line 21 and forget losses.
I got screwed big time last year this way!!
I think I'm finished with offshore.

HUH?

NO, report your TOTAL WINNINGS on LINE 21 and deduct you losses on schedule A.

Your TOTAL on LINE 21 will be $500 more than what you deduct...........WHATEVER THOSE TWO FIGURES ARE.

If you did not keep a diary, prepare your 2006 diary by doing your very best to recount your actual wagers.

DON'T JUST GO BY WHAT I SAY, USE WHAT I SAY ONLY AS A GUIDELINE.........AND THIS GOES FOR OTHERS RECOMMENDATIONS TOO.

Take the advice you recieve here and than present this to a very good tax accountant and than the TWO of you decide what is the best avenue to take.

Whoson1st · Jan 17, 2007

Remember--last year--I presented a possible tax scenerio.

Horse Player--Bets $10,000 on a horse to win and the horse wins and pays $4.00.
The player has won "$10,000. which would go on his line 21.
All agreed at that time to put $10,000 on line 21. (But I'd allready filed with Jackson Hewlett). (I had allready claimed $20,000 from online winnings---screwed myself over)

-------------------------------------------------------------------
Turn the clock forward..... The player in 2006 deposits $5,000 and receives $5500. NOW!!!! Because
BUT because it is done online (papertrail) must claim $5500 on line 21. (not $500)

Line 21 is the KEY. (To keep from loosing the standard deduction)

Fishhead · Jan 17, 2007

Whoson1st said:
Remember--last year--I presented a possible tax scenerio.

Horse Player--Bets $10,000 on a horse to win and the horse wins and pays $4.00.
The player has won "$10,000. which would go on his line 21.
All agreed at that time to put $10,000 on line 21. (But I'd allready filed with Jackson Hewlett). (I had allready claimed $20,000 from online winnings---screwed myself over)

-------------------------------------------------------------------
Turn the clock forward..... The player in 2006 deposits $5,000 and receives $5500. NOW!!!! Because
BUT because it is done online (papertrail) must claim $5500 on line 21. (not $500)

Line 21 is the KEY. (To keep from loosing the standard deduction)

What is the standard deduction for the 2006 tax year?

BernieKozar · Jan 17, 2007

fishhead...... can you provide me with your email address??
thanks!!

Whoson1st · Jan 17, 2007

Not sure Fish---All I know is when I have to claim losses like I did last year--I get SCREWED! Should have simply claimed winnings( receivings).

But was afraid.

Domer · Jan 17, 2007

Alright I think I am screwed. I made a lot last year, but I also had at least 10,000 individual transactions/bets/"sessions".

There is no way I would ever be able to make a diary. Even if I had the time to catalogue it all, some of my books don't even keep records all the way back to January '06.

So then what happens?

Fishhead? Tax question-

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