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Good evening. You can deduct gambling losses against any gambling winnings when reporting gambling activities on your income tax return.
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This is my question:
How much Income and losses should Tom report on income tax return?Tom hit a $3,500 jackpot on a slot machine. other information: 1. the day he won jackpot, he went to casino with $200 in pocket. 2. After winning jackpot, he continued to gamble. 3. By the time he left the casino, he had $3,000 in his pocket. 4. While visiting the casino, he only gambled. He did not spend money on food, beverages, on any other items. 5. he didn't gamble at any other time during 2010, doesn't expect to do so before the end of the year. 6. Last spring, he won $250 in a basketball pool at his office.
He has winnings of: i) $3500, plus $250
He had losses of: i) $700.
but I saw under US court decision in George D. shollenberger v.Commissioner, it says we should use wagering gain as gross income, So I think the wagering gain=winning-basis=3000-200=2800, and we should report 2800 as gross income, why is that wrong?
Ok...Technically, here's how you report it...i) $3750 winnings on Line 21 of your Form 1040; and then ii) deduct your $700 worth of loss on Schedule A.