Do you gamble? You may get tax write offs.
Gambling as a source of revenues for state governments can be a hot button for many citizens, but the IRS has decided that gambling is a necessary evil that is not going away. To demonstrate this belief, the IRS allows taxpayers to deduct any gambling losses from gambling winnings to avoid paying additional taxes on your winnings. However, you may deduct gambling losses only if you itemize deductions and the amount of losses you deduct may not be more than the amount of gambling income reported on your return. The key here is that gambling losses can only be deducted from like kind gambling winnings (playing a specific scratch ticket or poker game at a casino). For more information on deducting gambling losses, visit: http://www.irs.gov/taxtopics/tc419.html.
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!