1099-misc for the NHC

[Scav]

Originally Posted by pointman

I understand where you are coming from, and I could be wrong, but my instinct tells me that it has nothing to do with Monmouth and everything to do with the IRS.

The IRS definition of income is all money, goods, property and services you receive from any source derived. In basic terms, anything you receive is taxable unless the tax code specifically exempts it. If you go on The Price is Right and you win a car, you have to report the value of the car as income and pay taxes on the value. It is why Richard Hatch, the first winner of Survivor, went to jail for failing to report his winnings.

Again, I am not an expert in the area. But I do know that anything you receive is income unless the tax code specifically says it is exempt or deductible. I am sure there is a CPA around here who knows better, but my instinct says that winning a trip to the NHC is something that you need to discuss with your accountant as there may be tax consequences.

What is probably happening is that some of the people might be voluntarily reporting it as gambling income and then just writing it off as gambling loss. I guess if I were to get into a tourney and lose, I would consider that a gambling loss on my taxes. When you do your taxes, there is an area for 'unreported gambling winnings' but I think you can only write off what is reported on W2G's but I could be wrong.

But I agree with you with what you are saying on taxable income.