Online Gambling Tax Reporting

[profiler999]

I've read till my eyes are crossed, but have yet to find an answer to my questions. Maybe there are none. Anyway, read, and answer or point me in a direction, and I will be most appreciative.

I been in BoDog for most of a year, gambling online hard. Cash has flowed both ways, from me to them and them to me. Most action before the dreaded law change. Very little afterward.

How do I pay taxes? Just on the money that was pushed through to my bank less what I pushed through to them? Obviously, there are no 1099's available or reporting done yet. However, if the IRS looks at my bank statement, they'll see large transactions.

So I don't want to go to jail and I really do want to pay what is fair. If I go off my deposits and withdrawals it's one number. However, If I did win something and I put it all back in immediately as most addicts do, how do I count that money? That's my dilemma.

Do I go with hard numbers off my bank statement or try to come up with winnings and losses from Bodog?

Thanks in advance. I really do appreicate the help.

[Niediam]

If you are an amature gambler:

All your winning sessions are taxible. You then have the object to deduct your losing sessions.

If you are a professional gambler:

You net your winning & losing sessions together for your income. You may also deduct expenses (internet, gas, etc).

[profiler999]

hmmm, win $200k, lose $300k, write off $100k as a professional. I just don't look good in stripes. Any CPA's familiar with these tax rules, please PM me.

[Mike Haven]

See the Tax Matters thread, linked in the FAQ post. The answer is probably in it.

[profiler999]

Thanks. I've read every word of the tax matter thread. I agree, probably too much for me to be considered a professional. However, in hindsight, how do I go back and find out the winnings and losses by session? I just don't think it can be done. I can show the withdrawals and deposits so will that count as sessions? It's all I have.