|Posted: November 6, 2011, 9:41 am - IP Logged|
"My question is this; How would one go about starting up a 10 percent business "
On a much smaller scale, you'll find "10 percenters" at almost every race track in the U.S. They are usually people on Social Security that cash tickets requiring a W2-G form and get 10% or more of the winnings. Their yearly income including the W2-Gs is probably less than $40,000, they pay no state taxes and apparently in Massachusetts, the state tax people keep a list of them.
Anyone can claim gambling losses up to the amount of winnings when filing Federal taxes, but professional gamblers must keep records of all wagers and all winnings. Even though he is a professional gambler, Jones' name was on the list because he cashes lots of lottery tickets. Jones' records show he bought the tickets and the state tax people charged him without ever doing a thorough investigation.