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Lowering taxes by keeping losers??

Topic closed. 7 replies. Last post 10 years ago by pacattack05.

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United States
Member #38807
May 5, 2006
34 Posts
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Posted: June 20, 2006, 11:48 am - IP Logged

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?

    SirMetro's avatar - center
    East of Atlanta
    United States
    Member #6191
    August 11, 2004
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    Posted: June 20, 2006, 11:55 am - IP Logged

    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.

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      Honduras
      Member #20982
      August 29, 2005
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      Posted: June 20, 2006, 1:57 pm - IP Logged

      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".......

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        Morrison, IL
        United States
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        May 13, 2004
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        Posted: June 20, 2006, 5:26 pm - IP Logged

        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.

          RJOh's avatar - chipmunk
          mid-Ohio
          United States
          Member #9
          March 24, 2001
          19830 Posts
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          Posted: June 20, 2006, 5:51 pm - IP Logged

          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. 

           * you don't need to buy more tickets, just buy a winning ticket * 
             
                       Evil Looking       

            Badger's avatar - adu50016 NorthAmericanBadger.jpg
            Wisconsin
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            March 27, 2003
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            Posted: June 20, 2006, 6:07 pm - IP Logged

            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 losing lottery tickets, and isn't ahead (is a net loser during the year) and tries to claim that on his taxes, he will get audited, and they will not allow it on his return.

            The Fed govt may do stupid things, but they surely aren't so stupid as to not have their butts covered on this one. They would have figured out ahead of time that somebody will be stockpiling losing tickets like your customer.  Your customer will likely be in for a big surpise.

            Some states (on state returns) also allow the same thing as the Fed does on its return. In WI, however, no gambling losses are allowed to be claimed under any circumstances.

            ============

            How can you tell if a politician is lying?

            Answer: His lips are moving.

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
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              January 17, 2006
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              Posted: June 20, 2006, 11:57 pm - IP Logged

               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. 


                United States
                Member #17555
                June 22, 2005
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                Posted: June 21, 2006, 12:30 am - IP Logged

                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 the above paragraph, you mention charity. today, I have a pick-up reservation at 9:30 AM.

                The name of the street is called "Charity Court".

                Here's a red flag if I ever saw one........LOL