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#1
03-22-2006, 02:40 PM
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What if you lost $$$ in 2005?
I know everyone here is a winning player. But lets just think about this.
Let me know my thinking in this general scenerio is correct. Total Income my real job = 45k Total Poker Winnings = 28k Total Poker Losses = 31k Assume I don't have any itemized deductions besides poker losses. I report 28k on schedule C I deduct 28k (only up to winnings amount) My AGI would go from 45k-5k=40k to 45k+28k-28k=45k. So now I have a new tax liability of 5k * tax rate. Talk about adding insult to injury. 
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#3
03-22-2006, 05:04 PM
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Re: What if you lost $$$ in 2005?
stop playing poker if you are losing
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#5
03-22-2006, 05:18 PM
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Re: What if you lost $$$ in 2005?
I am not losing. But I or you may have a losing year in the future. So save your sarcastic remarks for anther post. This is a hypothetical question. I would appreciate an intelligent response.
Thanks
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#6
03-22-2006, 05:31 PM
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Re: What if you lost $$$ in 2005?
You have a 73K income and 28K in itemized deductions.
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#7
03-22-2006, 05:34 PM
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Re: What if you lost $$$ in 2005?
[ QUOTE ]
You have a 73K income and 28K in itemized deductions. [/ QUOTE ] Could someone please explain how this is different than 45k income? perhaps show the two different calculations? Thanks in advance! -Matt
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#9
03-22-2006, 05:55 PM
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Re: What if you lost $$$ in 2005?
No Poker With Poker
Gross Income 45k 73k Standard Deduction (5k) (0) Itemized Deduction (0) (28k) Total Taxable Income 40k 45k So by losing 3k playing poker you owe taxes on 5k more income.
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#10
03-22-2006, 06:16 PM
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Re: What if you lost $$$ in 2005?
Oh, so the only real drawback to filing as 1. poker winnings and 2. poker loses (as opposed to a net winnings amount), is the that you lose the 5k standard deduction?
I was under the impression that the situation was worse than this.
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