Tax Question

[ubercuber]

I am considering excluding from my 2006 income: all session wins and losses, and gambling related income, that was "earned" after my last neteller withdrawal for 2006, based on the fact that this income has yet to be realized, and it is reasonably questionable as to whether it will ever be realized. Should I obtain that money in 2007, I will inlcude it as 2007 income.

Does this idea hold water?

[thetruest]

i don't know but it definitely should, good question

[jively]

No, it doesn't.

[broiler]

The problem with your argument is that it is contrary to the rules of constructive receipt. Constructive receipt only requires that you could have received the money on the date that it was earned. Neteller was still working until 2007.

In order to avoid constructive receipt, you would have to have no reasonable way of getting your funds after the session. All of the major sites still have the ability to send you a check for your winnings, which is the reason that your idea fails.

[Fishhead24]

WHEN you won is when it has to be reported.

[ongo30]

I haven't won a fortune, maybe a few grand. I've probably balanced out my online wins with losing it on the craps table in Vegas.

Is it any big deal not to report any of it, if it's not that big of wins?

[goodgrief]

You have to report your entire win, and you probably don't get any deduction for your losses if you are talking about U.S. law. You have to be able to itemize deductions on Schedule A to be able to legally deduct your losses. A majority of Americans can't do that. Sorry. An honest CPA would have told you the same thing, or you can verify my information by exploring irs.gov website.


[ QUOTE ]
I haven't won a fortune, maybe a few grand. I've probably balanced out my online wins with losing it on the craps table in Vegas.

Is it any big deal not to report any of it, if it's not that big of wins?

[/ QUOTE ]

[goscottgo]

not to hijack this thread, but if i won a total of $1500 playing online poker last year, and do not have session by session info, should i just claim gambling winnings of $1500 and not report any losses?

also, i moved to Maryland so I take it i will never see my money from Neteller?