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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28904
Experience:  Taxes, Immigration, Labor Relations
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I won't some money in 2014 at the casino and I hAve to pay

Customer Question

Hello
I won't some money in 2014 at the casino and I hAve to pay about $ 60,000 IN TAX.
I been thinking to use this money to buy stock option at the fix rate and borrow some money from investor bank, using the stock as a collateral .
Question is: put on my personal record a new 10 year loan debt can help me to reduce the
$ 60,000 tax payment ?
Or there is any way I can use this money in investment instead than using for pay tax ?
Thank you
D.Dolino
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Unfortunately - that woudl not work as you think...
As long as you realize income from wining - that is reported as gambling and must be included into your tax return.
What you may do - you may use your gambling losses - up to the amount you won as a deduction. That will reduce your possible tax liability.
Let me know if you need help with reporting.
However whether you use proceeds to purchase stock option or other investment assets - that will not affect your taxable income.

Expert:  Lev replied 1 year ago.
Gambling winnings are fully taxable and must be reported on your tax return. Here are the top seven facts the Internal Revenue Service wants you to know about gambling winnings.
-- Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.
-- Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.
-- The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form.
-- If you itemize deductions, you can deduct your gambling losses for the year on line 28 of Schedule A, Form 1040.
-- You cannot deduct gambling losses that are more than your winnings.
-- It is important to keep an accurate diary or similar record of your gambling winnings and losses.
-- To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.