Article Date:
October 2017


Word Count:
1391

 

 

Q&A: Find Some Tax Sanity by Using the Gambling Per Session Rule


Question

 

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:

 

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Winnings reported above the line add to adjusted gross income (AGI). The higher ... Log in to view full article.

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