Comments on: Can gambling on slot machines be run as a legitimate small business for tax purposes?

By: ninasgramma

ninasgramma — Wed, 29 Oct 2008 00:37:09 +0000

Professional gamblers are self-employed and could deduct losses in excess of their winnings. But they would have to demonstrate a profit motive, and generate profits at least some of the time.

It is very unlikely that the IRS would consider a slot machine player as a professional gambler, as the nature of slot machines would not generate a proft over the long term.

Whether you are a professional gambler or not, the W2-G income still will increase AGI. The difference is how losses are deducted. There is no way to avoid claiming W2-G income as income.

By: Mathew

Mathew — Sun, 26 Oct 2008 00:02:13 +0000

If you itemize your deductions you can claim losses up to the amount of your winnings but will need a system to show those losses. Only professional gamblers are allowed deductions greater than their winnings and beyond just their losses.

By: Jo Blo

Jo Blo — Thu, 23 Oct 2008 10:24:48 +0000

you would have to be a professional gambler, which means that would be your only source of income. You’d need to be able to show you just about lived in a casino, and have no other means of support.

By: bostonianinmo

bostonianinmo — Tue, 21 Oct 2008 07:51:46 +0000

Only if you own the slots.

By: MrOrph

MrOrph — Sun, 19 Oct 2008 04:48:54 +0000

You can’t avoid it as long as it’s income. You can be a legal gambler by profession, but winning is still income.