Rake deduction?

[WalkAmongUs]

Can you deduct the rake you pay on your taxes? If you are taxed on your rakeback then wouldn't it follow that you can deduct rake?

I searched and came up with nothing on this question.

[Berge20]

Short answer is no - There are some threads on it, let me see if we can find them.

[KEW]

Rake is a "deduction" everytime you win a pot(it's taken out for you)..If you deducted again you would be double counting the rake..

[cardcounter0]

Yes, you can deduct the rake. Just be sure to add the rake to winnings also. Since what you are showing as winnings probably already has the rake taken out of it, be sure to add the rake back in. Then deduct the rake portion back out of your inflated winnings.

[plasphemy]

Since rake comes out of the pot before you actually win it and wouldn't be figured in as winnings, there isn't a scenerio where the rake you paid can be deducted from your winnings.

Rakeback is additional income.

[TreyWilly]

[ QUOTE ]
Yes, you can deduct the rake. Just be sure to add the rake to winnings also. Since what you are showing as winnings probably already has the rake taken out of it, be sure to add the rake back in. Then deduct the rake portion back out of your inflated winnings.

[/ QUOTE ]

Wouldn't this be the same as reporting the winnings minus the rake?

Or was that the point you were making?

[SlowHabit]

Rake isn't deductible since it is already calculated in the size of the pot whenever you win.

Like I said in the other thread, www.TaxForPoker.com has a short guide on what to do and onlinepokerfaq.com/guide/tax-links.html has a more tedious version.

Don't try shortcuts because the IRS will catch you.

Good luck.