Politics - important
This isn't a left or right issue and I hope the mods leave it up for a bit.
The Senate has injected a poison pill into Trump's spending bill. It will make only 90% of the wins/losses deductible against the wins. That's a huge disaster for people that file taxes.
I know nothing about how it got in the spending bill, the fact is that it's in there now.
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The super wealthy want tax breaks for the super wealthy and so want to make up for it anywhere they can below - it is what it is. You dont have to classify it as “political” to understand who the current administration is concerned with. Our National Debt will grow but the billionaire class will pay much less. Its just factual.
So do you just need 10% more in losses than your wins?
If you won $10k gambling, and you have $11k losses, that mostly offsets?
I trust that it's still dependent on having to itemize, which is bad? And if you do, it still raises your AGI, which is bad?
So do you just need 10% more in losses than your wins?
If you won $10k gambling, and you have $11k losses, that mostly offsets?
I trust that it's still dependent on having to itemize, which is bad? And if you do, it still raises your AGI, which is bad?
Yes, if you don't itemize you're still on the hook for all handpays at minimum, even if you lost money in sum.
I find that pork fat acceptable... 90% reduction is better than no reduction.
I can't embed Galfond's short in here, but a pro plays many sessions and/or tournaments. All those times they break even includes many sessions where they get credit for only 90% of the winning sessions. Over time the pros get screwed very badly.
Yes, if you don't itemize you're still on the hook for all handpays at minimum, even if you lost money in sum.
Incorrect. If you file as professional gambler and thus report your gambling wins/losses on schedule C, you do NOT have to itemize via sched A. You can still take the standard deduction on 1040.
So do you just need 10% more in losses than your wins?
If you won $10k gambling, and you have $11k losses, that mostly offsets?
I trust that it's still dependent on having to itemize, which is bad? And if you do, it still raises your AGI, which is bad?
Nit if you file as a professional gambler via sched C. Can still take standard deduction.
Oh I just saw some details and I misunderstood the law as told.
Capping deductible losses to 90% of winnings screws all gamblers, and especially high volume gamblers.
Ex: $100k in winnings is currently offset completely by $100k+. No tax due because of gambling, but your AGI is increased.
Now with this law, only $90k can be deducted, no matter what your losses are (ad long as above 100k). You are now taxed on $10k gambling winnings at your marginal tax rate.
I'm imagining the big slot channels like Big Jackpot (who is a scumbag email spammer so no sympathy gained there) or Brian Christopher or Vegas Matt. Millions in gross income -- ouch
