Need Some "Tax" Info from the Masses!
 

Was @ Scioto Downs in Columbus on Saturday w/ brother betting a few races and taking in the KnS race! We were able to hit a trifecta that we needed to sign; that's always a good thing! I thought I've read on here in the past that 2 people can split the taxes owed on such a ticket since they split the cost of the ticket/winnings. When I asked at the window, they stated that they never had heard of this option? Did I dream this or can you indeed "split" the taxes owed among multiple people? Just wondering . . .

You can, there is a specific form that you can fill out that can assign %'s of the ticket to many individuals.

I am guessing you had to 'sign' for it because you played the ticket for $2.

This is a perfect example of why any tickets you play should be of the $1 variety. If you would have played it for $1, and punched the ticket twice, you wouldn't have to sign.

Its a "signer" if the payout is greater than $600 to $1. I've had several .10c superfecta signers hits.

Am I missing something, what do you mean by it was played for $2, and wouldn't have to sign if played for $1?

My understanding is how much the ticket is played for has no impact on if its a signer or not. For example, if you play a ticket for $400 to win and the horse pays $4 to win, you'll cash for $800, but that's not a "signer" even though the payout exceeds the limit.

Please explain further, if I'm wrong.

Not trying to start trouble, just curious if I should be playing things a different way when I place wagers.

Thanks in advance.

It is 300-1 AND $600 or more total. So if you had two separate $1 tickets that each paid $450 you wouldn't have to sign for them. If you had one $2 ticket that paid $900 you would have to sign for it. That's why it is better to break your tickets up.

Ok, no problem explaining. The tax code was written for $2 base tickets, so if you notice, it says either 300/1 or $602 per wager, or something to that effect.

Lets say you play these two tickets on the same race

$2 Trifecta 1 with 2,3,4,5,6 with 2,3,4,5,6 Total $40

$1 Trifecta 1 with 2,3,4,5,6 with 2,3,4,5,6 Total $20

The $2 trifecta payout is $800.

You would have to sign for the $2 ticket because it is over the 602 level, and you could walk up to a machine and put the $1 ticket in and there would be no problem because it isn't OVER the $602 level.

Thanks!

I never knew about the 300/1 rule, always went by the $602.

Need to keep that in mind, especially if .50 tri's and .10 sups are available. Much better playing seperate multiple tix than one big one. Which was your point exactly, Scav, sorry, I can be a little slooowww sometimes.

Why make anything easy on the customers??:zz:

IRS Form 5754.


http://www.irs.gov/pub/irs-pdf/f5754.pdf

In the example of the $400 to win that pays $800, you're not signing, unless something has changed recently.

that's what was originally said

Yeah, I was just clarifying that not every bet over $600 is a signer, that's all.

Thanks man, I couldn't remember what form...

And no problem Ato. It took me forever to understand because it makes zero logical sense, but nothing in this industry makes sense

Thanks for the info and the link to the form; thought it could be done. And Scavs, this WAS a $1 bet . . . just wish I did punch it a second time!

Then they have some jacked up machines. Because I hit a bet this weekend that paid $450 per $1 and I didn't have to sign anything...

not much dealing with the IRS ever makes sense!

A $1 tri on the KnS race shouldn't be a signer... equibase lists the payout as $404.80.... which is under $600.

Liked the odds on KnS, as my sister was in town visiting and both cashed tickets on her!!!!

Oilertige said he hit a signer- not on KNS race.;)

Good reading skills......my bad

me too.

If you are partners in wagering tickets and you hit a signer there is a way to split the tax liabilty. You need to download IRS Form 5754 from the IRS website along with the instructions.

This thread has made me laugh at each answer. no one asked what race he bet, for how much and what the payoff was. it must be Monday.

I heard the tax form was 5754.

He was asking about splitting the tax liability. I told him that he needs to fill out IRS Form 5754. How much he bet or won is none of my business.
It's almost Tuesday and the SPA opens on Wednesday and that is something to laugh and smile about.

AD; was the 9th race @ Belmont; the G1 CC American Oaks race which was won by Funny Moon . . . $2 Trifecta (8-3-2) Paid $1,663.00

Our bet was a 4 horse $1 tri box costing $24 . . . thus our share was $830.15; thus the need to sign and our desire to "share" the tax.

very nice hit and now with the info, they can answer the question. good job.

The form is the same whether it is Belmont or River Downs. $800 or $8,000,000.:wf

Seriously, if you do not get many signers, you might not need to split it up, a $800 gambling winner and 800 write off won't be looked at too heavily, in my opinion :)

Splitting it would probably lead to more scrutiny than forking over the cash to the signer.

You can write off winnings up to the amount of the winnings, so he really wouldn't have to pay anything.

Only if you itemize, Scav. If you take the standard deduction, you're screwed.

--Dunbar

I know, but you can figure out both and see which one benefits you. For a single $800 ticket, you aren't getting hit that hard anyways. And alot of people over the age of 25 itemize as it is.

You missed out on the opportunity of a lifetime.........................................

To meet one of the many "characters" at Scioto Downs who would have been glad to help you with your ticket cashing:eek: :eek: