Quote:
Originally Posted by richard burch
... But aren't winnings offset by losses? Isn't that the reason for saving those losing tickets?...
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You can't offset winnings with losses unless you itemize deductions on Sch A. For winnings at a gaming table or a slot machine, you're able to just report your "session" net win, and there has been a lot of discussion about what constitutes a "session". I think it's generally considered to be each time you cash out, but never longer than a day's gambling. I don't know what the "session" standard is for horse racing. If you do file a Sch A, then "saving those losing tickets" makes sense. It might also make sense if you can argue that a horse racing "session" is a day's bets.
You can also deduct losses (as well as expenses) if you're serious and continuous enough to declare your gambling a business and file a Sch C. However, that has its own set of issues. For example, if you file a Sch C you have to pay an additional "self-employment tax" on net profit for the year.
[caveat--I'm not a CPA. But I have filed a Sch C for gambling income for over 25 years with no major problems.]