This is a provision in the GOP tax reform bill that was introduced today. (It\'s DOA, but FYI)
Sec. 1407. Limitation on wagering losses.
Current law: Under current law, a taxpayer may claim an itemized deduction for losses from gambling, but only to the extent of gambling winnings. However, taxpayers may claim other deductions connected to gambling that are deductible regardless of gambling winnings.
Provision: Under the provision, all deductions for expenses incurred in carrying out wagering transactions (not just gambling losses) would be limited to the extent of wagering winnings. The provision would be effective for tax years beginning after 2014.
JCT estimate: According to JCT, the provision would increase revenues by $0.1 billion over 2014-2023.
How\'s that different than current law?
Current law permits deductions (only for professionals, I believe) on top of loss deductions used to offset \"signers.\" So if you\'re a pro, you could deduct err or sheets. Under this bill, that would effectively go away.
But if you\'re a stock daytrader you can easily deduct the pencil you stick in the monitor when your stock tanks.
They are truly trying to sabotage the game. I don\'t know how the big players handle the withholding boondoggle. as it is. Bet 2000, hit saver for 2000, pay Sam 400 (or whatever it is). Rinse, repeat.
Could be worse, in Ohio we aren\'t even allowed to offset winnings with losing tickets (speaking of state taxes here). You get a W2G, your gonna owe the state 7% of it on your return next year no matter what loses or expenses you have.
Cheaper to lose every bet.
The only civilized Western nation to tax gambling winnings . . .
Based on the discourse in DC and in most state caps you are using the term \'civilized\' very loosely.
twoshoes Wrote:
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> Based on the discourse in DC and in most state
> caps you are using the term \'civilized\' very
> loosely.
Bending over backwards in the direction of relative civility . . .
It could be worse. In Massachusetts, we also can not offset loses on signers but they passed a law last year that requires withholding on all winnings greater than $600. NOT 600-1 but $600. A $20 win on 15-1 shot is going to cause tax withholding. It really is pitiful.