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Professional lottery player wins tax dispute

Topic closed. 33 replies. Last post 5 years ago by PERDUE.

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Kentucky
United States
Member #32652
February 14, 2006
7308 Posts
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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.

    James1's avatar - 5599078405 12a562a9e7_t.jpg
    Florida
    United States
    Member #104435
    January 14, 2011
    2244 Posts
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    Posted: November 6, 2011, 6:59 pm - 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.

    Yep you always find them at race tracks. sometimes ive had regular players approach me at the local store asking if i needed tickets cashed. not hard to find.

    By the looks of it this guy is a professional ticket casher with an extended network of connections.

    2014 Highest Winner: $500

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      Pennsylvania
      United States
      Member #78052
      August 6, 2009
      785 Posts
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      Posted: November 9, 2011, 6:02 am - IP Logged

      Psssssss.....He's a member of Lottery Post!   Keep it under your hat!

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        Monkey Butt, USA
        United States
        Member #54569
        August 23, 2007
        1124 Posts
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        Posted: November 16, 2011, 6:31 pm - IP Logged

        Wonderful story.

        I learned a few things from this story.

        I never would've thought to keep tickets from a decade ago.

        WOW!! Great story Todd.