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Originally Posted by Rupert Pupkin
He will have to show that he lost at least $754 for the year. You can get a year end statement from TVG. If the statement shows that you lost money for the year, then you won't have any tax liability. If Euro had a winning year at TVG, then he will have to pay the taxes unless he can show other gambling losses. Maybe he won money at TVG but lost money on his actual trips to the track.
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Three things:
1. You can only offset gambling wins with losses if you itemize deductions (Sch A). That's the part that truly sucks. If you normally take the standard deduction, you are really screwed.
2. If you do file Sch A, you can use ANY gambling losses to offset a horseracing win. If you take 1000 to a casino, keep track of the machines and/or tables you played at, and lose 500, you can use that 500 loss to offset the horseracing win.
3. Anyone here who actually shows a profit for the year in most years, and spends considerable time at it, should consider filing a Sch. C with gambling as the business. This not only circumvents the Sch A problem, but allows you to deduct all reasonable expenses, too.
--Dunbar