Question on deducting meals

[otter]

I'll file as a pro this year and expect to do so next year as well. I was a bit confused when I read, "how to turn your poker playing into a business" with regards to expensing meals. I live in MI, but travel to Vegas and Cali often. Is it the case that I can deduct either 50% of my meal expense or take a stipend ONLY when I'm out of town? Do I have to consistently do one or the other for the entire year or can I take a stipend one time and use receipts the next?

How about when I go to the casinos here in MI or across the border to Windsor and I have to pay for food? Can I deduct that? How about it I sat down with somebody else and we discussed poker strategy. Is that something I can expense?

Lastly, can I only deduct the cost of food that I eat at a restaurant inside the casino or could I deduct meals I ate at establishments close to the casino?

[Poker CPA]

Have to establish your "Tax Home" first. But based on your information:

1. Yes/maybe
2. No
3. No

But playing for more than 24 hrs (non stop) could change # 2 and 3.
Good Luck, be back tomorrow.

[Poker CPA]

Strategy meals? Yes, but you need to be careful.

[Poker CPA]

Big meals only, no nickels and dimes at your place of business (ie tax home). Under the circumstances (gambling), definitely need the receipt. And girlfriends are acceptable.

[otter]

I'm not sure what you mean by "tax home," but most of my hours are played in Michigan casinos, especially as of late. Therefore I would have to assume that MI is my tax home.

[otter]

I doubt that I'd try, now that I think of it

[Poker CPA]

"Tax home" is your place of business. I'm sure you live in a neighborhood with lots of doctors. Lets say your neighbor works at 3 nearby hospitals, his "tax home" are the hospitals. His morning commute is not deductible as a business expense, but if he has to visit two hospitals in a day then the commute from the first hospital to the second is a business expense.

In your case the MI casinos are your "tax home", therefore the commute is not deductible. Commuting is generally accepted as a car trip, but could be a train, bus or some logical or reasonable means of transportation.

For the online player, their "tax home" is their "office-in-home".

As to the Vegas trip; maybe, its all based on facts and circumstances, in which expenses must be supported by the "ordinary and necessary" tests.

[otter]

Actually now that I think about it last year my tax home is my home since, in looking at my records I played more online than B&M. This year, however I'm playing more in the casino so I guess my mileage won't be deductable when I prepare next year's tax return.

[Poker CPA]

2nd commute only otter, unless you pull your car out of the garage and drive to the front door of your "office-in-home".
Be reasonable and logical. A "pissed off" auditor cuts no breaks and will only dig deeper.

[otter]

If my primary tax home is my house, then can't my commute to the casino be deducted? I'm going to be honest about everything, but want to maximize my deductions.

Also, I read a post someplace where you suggested not e-filing. Can you explain why? I can't find that post

[Poker CPA]

What part don't you understand? The "2nd commute" or the joke?

"2nd commute only otter, unless you pull your car out of the garage and drive to the front door of your "office-in-home"."
Be reasonable and logical. A "pissed off" auditor cuts no breaks and will only dig deeper

[LuckyTxGuy]

Poker CPA is giving good advice. This is the same advice my CPA gives me for my non-poker self-employment.

I have a home office and an office in town. If I get out of bed and do some work in my home office, then drive to my office in town, there is no mileage deduction. I'm still on my first commute to my office. However, if I leave my home office, drive to my office in town, then get in my truck to go see a customer, I can then start deducting my mileage starting at my town office and this includes the mileage all the way back to my home or town office, which ever I go to first. (correct me if I'm wrong Poker CPA)

[Poker CPA]

Very good. And always document your adventures in your computer business log book.

[otter]

I think I read one of your posts that says not to e-file. Why do you say that?

[Poker CPA]

Waiting for response from our IRS tax examiner, he's in another post. Looking forward to it.

[otter]

?

[mo42nyy]

ok im confused
the irs has a per diem list for meals
In Atlantic City it is 54 dollars a day
It says you dont need to have receipts but it needs to be substantiated
WTF does that mean?
I kept a journal of all of my ac trips, but not food receipts or what I ate. Can i take the 54 dollars a day?

[otter]

I'll be in Vegas and Cali next week. I don't deduct meals here in MI and this is my tax home. However what are my options in Vegas and Cali? My girlfriend and I will be driving her car from Cali, then staying in Vegas for a weekend before moving on to Arizona. Can we deduct hotels, gas and a certain amount for food? Should I take a stipend for food and does it vary depending on which state we're in?

Lastly, if we decided to rent a car instead of taking her car would that be deductable?