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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 577
Experience:  10 years experience
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I wanted to get a second opinion on what I can claim

Customer Question

I wanted to get a second opinion on what I can claim for my gambling losses.
Total W2G winnings are 193,700. Federal taxes were not withheld.
I did not keep a diary because I was not aware of this requirement. I was finally able to get the casino to give me a daily gaming history report which shows cash play and actual wins for each day. Total cash play for 2015 is 600,785 and actual net win is a loss of (9,688). If I total the losses for each day I had a loss I get 142,697. If I total the wins for each day I had a win I get 133,099. The difference is the net loss of (9688).
I originally thought since I had a net total loss for the year I should be able to deduct my total W2G winnings of 193,700 as gambling losses. Now I am thinking I should only deduct 142,697. I am going to have to pay the IRS 7,652 if only deduct 142.697 and so I want to make sure I am doing the right thing.
Thank you for your time.
Submitted: 6 months ago.
Category: Tax
Expert:  emc011075 replied 6 months ago.
Hi. My name is ***** ***** I will be happy to help you. It is not as simple because your winning are being re-invested and when you loose them they are reported as losses again. You will need to figure out how much you actually spend in the casino based on your initial purchase of tokens, your credit card slips or checks. For instance, in one day you started with $50. You win $70, but you do not stop, you keep playing and loose it all. For that day you will have recorded $70 in loses but in reality, you only lost $50.
Customer: replied 6 months ago.
So in your opinion I cannot claim any gambling losses if I did not keep a diary, correct?There is no way I can go back and recreate what I actually spent each day.I thought the Daily Gaming History Detail report could be used as a substiute for the missing diary. The report has an actual win amount for the day and a cash play amount for the day. I was under the impression the actual win amount for the day takes into account the actual amount I initially wagered for the day.
Expert:  emc011075 replied 6 months ago.
Not necessarily. The wagers tell you how many times you won or lost and how much but it will not tell your initial investment. If you started with $50 than won 40 and than you lost 70 but won 20 again, your wager will show 60 win, 70 lost with net 10 win. But in reality you lost 40 because you initially invested 50.
Expert:  emc011075 replied 6 months ago.
Because all your winning are reported as taxable income, you can deduct your total losses (not net for a day or total net, just add up all your looses) but your actual loses will probably me much higher because of your start up money. You can deduct up to 193,700 of your loses on Schedule A, which means you will have to include it all on your OH return and depending where you live, on your local taxes as well.