Lowering taxes by keeping losers??

Reply #7

pacattack05 — Wed, 21 Jun 2006 04:30:59 GMT

Quote: Originally posted by RJOh on June 20, 2006 You can only deduct your loses when you claim your winnings as taxable income and itemizes and then it can only be up to the amount you claimed as winnings. Since you get a standard deduction of $4500 to cover all your loses for interests on loans, charity, gambling and etc., you're probably going to have win several thousand dollars to exceed that amount and save more on your taxes than the additional taxes you'll owe on your winnings.

In... [ More ]

Reply #6

Coin Toss — Wed, 21 Jun 2006 03:57:50 GMT

The posters here are right, you can deduct losses up to your winnings and that's it. What happens is if someone gets lucky and makes a substatial score they usually get bad advice about this - so they go to race tracks and OTB places and casinos and try to gather up all the losing tickets they can.

So what you have is someone who won enough that it's taxed, let's say they won $2500, and they try and write off $7000 that they gathered in losers - all dated Dec 31st.

Reply #5

Badger — Tue, 20 Jun 2006 22:07:16 GMT

My understanding (though the IRS could have changed this since) was that you are allowed on your Fed return (if itemizing) to deduct your losses to the extent of your winnings . IOW, if you won $1,000 during the year, you could (with losing tickets as proof) deduct $1,000 in losses.

You certainly can not deduct any amount which is more than your winnings. IOW, if you win, for instance, $1,000 all year, you can not deduct more than that $1000. So if, as you say, this guy is stockpiling losi... [ More ]

Reply #4

RJOh — Tue, 20 Jun 2006 21:51:02 GMT

You can only deduct your loses when you claim your winnings as taxable income and itemizes and then it can only be up to the amount you claimed as winnings. Since you get a standard deduction of $4500 to cover all your loses for interests on loans, charity, gambling and etc., you're probably going to have win several thousand dollars to exceed that amount and save more on your taxes than the additional taxes you'll owe on your winnings.

Reply #3

ryanm — Tue, 20 Jun 2006 21:26:17 GMT

Also note that one can only deduct gambling losses if one itemizes deductions. Therefore, the gross amount of gambling winnings is always included in gross income.

Reply #2

pumpi76 — Tue, 20 Jun 2006 17:57:36 GMT

how you all keep the losers tickets...They are not redeemable...

keno is the demon who makes trophies of men ............you can't see it.............and it skins them........ from movie Predator .......

Reply #1

SirMetro — Tue, 20 Jun 2006 15:55:17 GMT

The general idea is that IRS will allow you to deduct the value of your loss from any profits generated. However, for this to be applicable, I think there actually has to be a considerable win. For better info, one may want to contact a local tax attorney or accountant for better direction.

Lowering taxes by keeping losers??

Tiburon140 — Tue, 20 Jun 2006 15:48:13 GMT

I temporarly work at a convenience store and there's a man who wants all loser lottery tickets. He said it will lower his taxes. We give him 2 box full of losers every 2 weeks. Sometimes he comes in with winners.. The highest was $10 winner.

Anybody know about this