Who decides tax rules?

MNpoker · #1 03-20-2006, 05:14 PM

And who should be contacted to question them.

In MN everyone who has every won at anything (not net but in a session) is supposed to report winnings.

For AMT you do not get to deduct losses.

For someone who regularly plays at Centerbury, Online, or even plays Blackjack or slots regularly it is almost impossible to have a NET win after considering the tax differences*. Yet all these things are legal in MN (well maybe not online but the rest are).
* Especially if you are already hitting the AMT without gambling.

I know there is much more important things to dwell on right now, but has PPA (or anyone) done any lobbying on this?

Zele · #2 03-20-2006, 06:40 PM

Does Minnesota have its own AMT, or are you talking about the federal one?

MNpoker · #3 03-20-2006, 07:11 PM

[ QUOTE ]
Does Minnesota have its own AMT, or are you talking about the federal one?

[/ QUOTE ]

MN has it's own.

And Gambling losses are NOT deductible. So you pay 6.4% on all winning sessions BEFORE considering losing ones.

See Page 2 of itemized dedcutions:
gambling losses that offset wins - not allowed

Zele · #4 03-20-2006, 08:14 PM

Ouch, you guys have my sympathy.

Russ Fox · #5 03-20-2006, 09:09 PM

Tax rules are decided by legislatures (generally). For the IRS, that's Congress; for each state, the state legislature. Some states have initiative processes/state constitutional amendment processes that allow the general public to place an initiative on the ballot. In California that process goes through the Secretary of State's office; it does in Minnesota, too.

-- Russ Fox