You probably know people who believe they can beat the odds in Vegas.
You should be skeptical.
According to statistics from the University of Nevada, Las Vegas (UNLV) Center for Gaming Research, your gambling friends are almost certain to lose over the long haul.
But the odds in Vegas look downright outstanding when you compare them with the tax law treatment of your gambling income and losses.
IRS House Edge
Many non-business gamblers discover they owe tax despite having zero net gambling income. This IRS “house edge” is the result of a combination of factors:
One-sided reporting requirements on your gambling income
Deduction limitations on your gambling losses
No deductions for transportation and travel expenses
Just ask Ann Laplante about the IRS house edge. According to both the lawyer that prepared her tax return and the IRS, she had a net loss from her time playing the slot machines. So it ... Log in to view full article.