Keeping a Gambling Log"
Tax time has come and gone for another year. If you were one of the "Lucky" people who won money at the Casino, you may have found you weren't so "Lucky" when you filled out your taxes. Uncle Sam loves to share in your joy by claiming a bite of your winnings for himself. That is exactly what happens to many "Winners" each April 15th, who don't keep a gambling diary or logbook.
When you win jackpot over $1,200 on slot machines or have other big wins at keno or the racetrack, you will receive a W-2G form. A copy of this goes to the IRS and you are required to list these winnings when filing your income tax. The law allows you to deduct gambling loses up to the amount of your winnings. You can only do this if you have documentation of your loses. Keeping a diary or logbook, is the way to do this.
A proper log must contain;
1) The type of game you played. (Slots, Keno, Craps, etc)
2) The date and location where you played.
3) Your wins and losses for each session or game.
4) Additional evidence of gambling activities.
I spent Easter weekend in Las Vegas attending a promotion sponsored by Make Your Bet Travel. On Friday night I attended a dinner hosted by Gaming Author Frank Scoblete for the subscribers to his "Chance and Circumstance Newsletter". During dinner I asked a man named Barry if he kept a logbook. He said he did not and was surprised to learn that Frank, Columnist John Grochowski and I all kept logs of our gaming activities. We discussed the importance of the logs come tax time.
The next afternoon, Barry was walking through the Golden Nugget Casino when he spotted one of the new Triple-Play Video Poker Machines. This machine allows you to play three hands of video poker at the same time. You are dealt the first hand and the cards you hold are then held for the second and third hand as well. A maximum bet on Triple -Play is five coins for each hand or 15 coins. Barry wanted to see how the machine worked so he put in a twenty. This was a dollar machine so his one "Trial" hand would cost him $15. He hit the 'Max Bet' button and was dealt a Pat Royal Flush. The odds of this are about 640,000 to one. Since it was a Triple-Play, Barry had THREE Royals for a Twelve Thousand dollar JACKPOT. The Golden Nugget took his picture, paid him his money and had him fill out a form for the IRS. Barry was lucky that he hit the jackpot in April and still has the rest of the year to keep track of any loses to offset this big win.
In "How to Keep More of What You Win" CPA Walter Lewis tells the story of an unlucky fellow who hits the jackpot on New Years' Eve. This unfortunate fellow has no chance to offset his win.
Walter Lewis is one of America's most experienced CPA's with over 25 years experience in tax matters. His book will take you step by step through the procedures for properly keeping track of your gambling activities so you will be ready come tax time. "How to Keep More of What You Win" answers the most frequently asked questions about Gambling, Taxes and the IRS. He will show you the right way to report winnings and substantiate losses using sample tax forms to illustrate the procedure.
Walt supplies you with sample logs that you can copy and use. There are different ones for Slots, Horse Racing, Bingo and the lottery. If you participate in any gambling activity, you need to read this book. The information will save you money at tax time next year. Make your win more enjoyable by keeping more of it.
Ben Franklin said, " The only sure thing is Death and Taxes."
We all have to pay taxes, but we don't have to give Uncle Sam any more than
we have to. Start your Gambling Log
TODAY!!
Until next time, remember: "Luck comes and goes...Knowledge stays forever."