#1
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Question concerning states where you can\'t deduct gambling losses
Certain states like MA don't allow you to deduct gambling losses unless you file as a professional. So if your winning sessions total $100,000, and your losing sessions total $95,000, you have to pay taxes on $100,000. In MA this means you'd be paying $5300 in taxes on $5000 of income.
I file as a pro, so this doesn't affect me directly, but I'm curious: 1. Do people actually file correctly in these cases? 2. If this issue came up in court, does the fact that this method of taxation is clearly unfair and against the spirit of the tax code hold any legal weight? Thanks, Z |
#2
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Re: Question concerning states where you can\'t deduct gambling losses
[ QUOTE ]
So if your winning sessions total $100,000, and your losing sessions total $95,000, you have to pay taxes on $100,000. In MA this means you'd be paying $5300 in taxes on $5000 of income. I file as a pro, so this doesn't affect me directly, but I'm curious: 1. Do people actually file correctly in these cases? [/ QUOTE ] This seems like a fairly obvious (and therefore pointless) question. Would YOU file in a manner that caused this to happen? |
#3
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Re: Question concerning states where you can\'t deduct gambling losses
[ QUOTE ]
1. Do people actually file correctly in these cases? [/ QUOTE ] Yes. Last year I lived in IL, and I payed state taxes based on $108K income, when my actual income was $36K. That's why I moved to TX this year. [ QUOTE ] 2. If this issue came up in court, does the fact that this method of taxation is clearly unfair and against the spirit of the tax code hold any legal weight? [/ QUOTE ] Against the spirit of the tax code? The spirit of the tax code is to discourage gambling by screwing people and milking as much money as they can from people who gamble. So if this issue came up in court, you'd just end up losing more money in lawyer fees trying to make this argument. |
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