OT: Sports Betting Tax Implications

[Tenspro2002]

For all you degenerates out there, how are you handling reporting your sports betting winnings and losses?

From what I understand, you are not supposed to just report your net winnings as income, but instead are supposed to report every single payout as income and every single wager/loss as a deduction. For example, if you have 20K in winnings and 18K in wagers/losses, you don't just claim 2K in income, but you claim 20K in income and 18K in itemized deductions.

However, unless you're already itemizing deductions, this would effectively screw you over. If you otherwise have 15K of deductions and would normally claim the standard deduction (let's say married filing jointly) of 25.9K, you would now be effectively losing out on 10.9K of deductions.

I have to imagine this affects most recreational sports bettors.

So what are you actually doing here?

 

[HeGotGame]

The same thing I have been doing for the last 20 years....

 

[CTBasketball]

One of my good buddies is addicted to the sauce. But yes you are right above. If for some reason you don’t itemize your taxes and take the standard deduction, you get screwed.

I believe there’s a way around it if you file yourself an LLC with a professional gambling tag, but am not sure on details.

 

[aburks41]

You guys are paying taxes?

 

[Tenspro2002]

One of my good buddies is addicted to the sauce. But yes you are right above. If for some reason you don’t itemize your taxes and take the standard deduction, you get screwed.

"Some reason" = don't pay more than 26K in mortgage interest + 10K SALT cap + charity

I expect this affects most sports bettors.

 

[methodology]

Laughable whoever uses those apps. You deserve the banana.

I still use pinnacle even though it’s been banned in the USA for about 20 years. Best lines in the business

 

[Tenspro2002]

Laughable whoever uses those apps. You deserve the banana.

I still use pinnacle even though it’s been banned in the USA for about 20 years. Best lines in the business

This applies to anyone who uses apps, live books, or anything else.

 

[sledog]

Do they send you a 1099? If not, ...

 

[Waquoit]

Do they send you a 1099? If not, ...

Exactly

 

[methodology]

This applies to anyone who uses apps, live books, or anything else.

Use a bookie and you can’t use pinnacle as a USA citizen. I have a Canadian partner with an LLC we run all that stuff through. Got to get creative with this industry you’re paying tax to gamble and on winning you’ll never be profitable

 

[CL82]

"Some reason" = don't pay more than 26K in mortgage interest + 10K SALT cap + charity

I expect this affects most sports bettors.

SALT cap was a game changer in the northeast.

 

[businesslawyer]

Laughable whoever uses those apps. You deserve the banana.

I still use pinnacle even though it’s been banned in the USA for about 20 years. Best lines in the business

I'll make you a deal. You don't call people who prefer to follow laws than ignore them as "laughable," and I don't tip anyone off that they should trace you through the Boneyard because you brag about not following them? Deal?

 

[HuskyHawk]

I just lose so it doesn’t matter. I could just drive down two exits and place them at the casino. If I make bigger bets I’ll do that. Cash in, cash out.

 

[UConnSwag11]

Do they send you a 1099? If not, ...

Only if it’s $600 or more in winnings I think

 

[Waquoit]

For all you degenerates out there, how are you handling reporting your sports betting winnings and losses?

So what are you actually doing here?

The IRS recognizes the impracticality of tracking every win and loss so you don't have to do it.

 

[Matt1010]

I'll make you a deal. You don't call people who prefer to follow laws than ignore them as "laughable," and I don't tip anyone off that they should trace you through the Boneyard because you brag about not following them? Deal?

Especially when the apps also have a lot of value between lucrative sign up bonuses, slow moving lines/mistakes, and line shopping. Bragging about just using Pinnacle is actually the laughable move here.

 

[Waquoit]

Only if it’s $600 or more in winnings I think

At odds of 300-1 or greater.

 

[McLovin]

Laughable whoever uses those apps. You deserve the banana.

I still use pinnacle even though it’s been banned in the USA for about 20 years. Best lines in the business

Get your lines on Pinnacle and use the apps to bet games where DraftKings/FanDuel/MGM/Whatever is off the Pinnacle line…

 

[husky8273]

Topic no. 419, Gambling income and losses | Internal Revenue Service

Topic No. 419 Gambling Income and Losses

www.irs.gov

 

[Waquoit]

Topic no. 419, Gambling income and losses | Internal Revenue Service

Topic No. 419 Gambling Income and Losses

www.irs.gov

Homework? How about a summary?

 

[HuskyHawk]

Homework? How about a summary?

It’s in the first post. You don’t get to wash gambling wins and losses the way you do with capital gains (of like duration). Instead the losses are just a general deduction if you itemize, which few people do anymore.

 

[Waquoit]

It’s in the first post. You don’t get to wash gambling wins and losses the way you do with capital gains (of like duration). Instead the losses are just a general deduction if you itemize, which few people do anymore.

What's in the first post? Not any answers. You can deduct gambling winnings from gambling losses. But gambling losses are not just a general deduction if you itemize.