I read your article on gambling winnings and gambling losses. I thought I remembered a court case or an IRS ruling that would allow an individual to net same-day gambling winnings and losses.
Thus, if a gambler had a $2,000 winner on a slot machine but on the same day had also lost $1,500, the impact above the line would be a net $500. Am I correct on this?
Why This Question Is Important
Before we answer this question, let’s see why the question is important.
The gambler who does not attain status as a professional gambler must report both winnings and losses. (There’s no net income for the casual gambler.)
This means the winnings produce above-the-line gross income. Losses are below-the-line itemized deductions. This creates trouble for the casual gambler:
Winnings reported above the line add to adjusted gross income (AGI). The higher ... Log in to view full article.