Quick tax question

[Dazarath]

Where do things like rakeback and bonuses go? Would they be considered the same as gambling winnings?

[krishan]

yes

[mo42nyy]

i dont see how.Your rakeback/bonus is not gambling- u get it based on playing a certain amount of hands not whther you win or lose the hands (especially if your rakeback is based on being dealt into the hand and not actual rake from hands you won)

[Big TR]

If you find $1000 laying on the ground, you are legally required to claim it as income. Most will not, but that is the law. The same theory applies here.

[punkass]

I think rakeback/bonuses are just considered part of your gambling income, and requires no distinction.

[Dazarath]

[ QUOTE ]
If you find $1000 laying on the ground, you are legally required to claim it as income. Most will not, but that is the law. The same theory applies here.

[/ QUOTE ]

In this situation, how would you declare that $1000 on the tax form?

[Big TR]

Misc. Income

[TLC]

You are supposed to put the "$1000 laying on the ground" under 1040 line 21 (Other Income).

The following is from IRS Pub. 17:
"<u>Found property</u>. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession."

Of course, it also states:
"<u>Illegal income.</u> Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

<u>Stolen property.</u> If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner."

[BenJammin']

haha do people really report Illegal Income and Stolen Property?

[captZEEbo]

[ QUOTE ]
You are supposed to put the "$1000 laying on the ground" under 1040 line 21 (Other Income).

The following is from IRS Pub. 17:
"<u>Found property</u>. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession."

Of course, it also states:
"<u>Illegal income.</u> Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

<u>Stolen property.</u> If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner."

[/ QUOTE ]this is a bad analogy, because those 3 things are not traceable whereas rakeback is traceable (assuming drug $ is done in cash)