Currently Massachusetts has no legal casinos. I can track my play through my ledger and my casino withdraws and bank deposits. Ultimately, I lost his money and some of mine, therefore, I know I can deduct the loses up to the total amount I won.
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Rate the answer you receive. Type Your Tax Question Here I'm currently in Chapter 13 and will need to submit my tax. I'm currently in Chapter 13 and will need to submit my tax returns to the trustee this year 4 of 5th. Over the course of several weeks, I won and lost a lot of money k. On at least 3 occasions I played in excess of 10k within a 24 hour period, which I believe requires a cash transaction report be completed by the casino, i. Ultimately, I lost his money and some of mine, therefore, I know I can deduct the loses gambling to the total amount I won.
My concern is if I claim this income on my taxesk, it will add to my normal earned income and thus the Trustee will increase my payments to the court or dismiss my case. Do I need to claim this income even though it wasn't my money? What are the odds the CTR is flagged because I'm in bankruptcy? Thanks in advance for your help.
Hello and bankruptcy for trusting me to help you today. I am casino gambling.com link virtual tax adviser with over 20 years of experience. Yes, you need to report the winnings on your tax return. Your fiancee gave you a gift but you gambled and won or loss with the money.
As soon as you were handed the amount it became yours. If you do not report the winnings you will hear from the IRS with a notice demanding pay of tax on the winnings. You can claim losses if you itemize and use Schedule A.
You can not claim any losses if you do not itemize your deductions. Bankruptcy will also only be allowed to claim losses that are no more then your winnings. It is not that fact that you are in bankruptcy that would flag your return it is the reporting by the casino.
Ask Your Own Tax Question. I'm assuming even though I can claim the loses through detailed reporting, the amount won less the loses would be added to my total income? Or, would the losses cancel out the wins and not change my total income? Hello, Yes the amount that baniruptcy after applying losses is going to be income to you. I understand your concern durjng that is really outside tax and I could not advise on whether your trustee durinh accept that your fiancee made this money available to you as a gift and not count it as disposable income.
It was not income until during won. The winnings were income. The gift it self was not income. It is the winnings that you would need to be explain. If you have enough losses then using the Schedule A will cancel those. The winnings though are all still reported on Line 21 and your income will look inflated.
You would need to direct the trustees attention to the Schedule A and explain the situation. I forgot to ask - are you a CPA with gambling tax experience? I do not think you need a Tax Attorney. You do need to have your return completed correctly. Depending on your other information you may feel a CPA is required but as long as your return is correct with the winnings reported then you will be set for that.
The trustee will either find in your favor or against. Your bankruptcy attorney would be the vest to advise on the situation of what happens now within the bankruptcy. I am a senior tax adviser with experience in taxes which includes gambling winnings during bankruptcy winnings and reporting procedures as well as record keeping for the losses a person would wish to claim. I am not a CPA. I do not do accounting.
Gamblnig prepare and teach tax lawapplication, and theory. You previously stated casinos report more than just amounts of 10k or more. I Only play blackjack - no slots or video based games. The dealer takes my cash and I take the chips after play to the cage to cash out assuming I've won. Thanks again for taking the time to answer my questions. I bankruptcy I've really doomed my bankruptcy with only a year left.
The casinos generally report all payouts over Those that are not are still required to be reported by the taxpayer. I understand your concern. The reporting may prove a problem for you but if you do not and your winnings were reported you would then have possible penalty and interest for under reporting.
Any and all gambling winnings must be reported to the IRS. You may not have had to fill out Form W2-G for your particular table-based games but that does not change the requirement to report. Thanks for that feedback and direction. May I ask a few more questions? I obtained a win loss statement from the casino today. Intuit states I can use that when filing my taxes but it's a good idea to keep my ledger of wins, loses, dates etc In case the the IRS challenges my schedule A bankruptxy.
Would you say I have a high likelihood of being audited casinoes in wa questioned? Gambling winnings during bankruptcy, I know the or more is my responsibility but I'm told the casino doesn't provide the Bankrupcty info on table game winnings except for poker wins over 5k however, they do complete a CTRC for the government for any cash outs or buy ins over 9, Are you familiar with the CTRC process?
Hello, The information you received is correct form Intuit. You can use that but you need to have a edger as well. It is important to keep an accurate diary or similar record of your gambling winnings and losses. That is under the money laundering regulations. Gammbling could be a very good place to pass and clean money. This accumulation is a net overall win or net overall loss for the year for slot and table play.
Even though table play does not generate a W2G dyring an exception for side bets the summary is on the books for the winnings during. There is no greater or lesser chance for you to be audited by claiming your losses. Although this is an area that is looked at. The IRS does not publish what areas they will be focusing on for a year in advance.
One can look back and see from published info what areas drew attention. Gambling losses bankru;tcy among those. That is why proof is retained. Would I have the option to claim it on next years taxes when I'm out of bankruptcy? Also, does the IRS request the information from the casino as tambling of audit procedures? Could I wait for gambling IRS to ask for the income info and negotiate las vegas gambling junkets penalties down?
Please understand, my main concern is avoiding dismissal of my ch13 case. The winnings are claimed in the year when they are won. Yes you can winnings but please know that id you do not declare the income and the IRS requests this you vankruptcy have interest and penalties should the tax liability increase. It would cost about 40k to buy out of my ch13 early. Bankruptcy delema weighing the cost of the buyout vs the cost of penalties and interest. I can track my play through my ledger and my casino withdraws and bank deposits.
There were at least two occasions I won k however, most times my baknruptcy resulted in a loss. Do I need to report the sessions in which my session at the table was a loss? You report any winnings that are allocated to you then you can show gamblong losses up to the amount. You are not supposed to adjust the Line If you lost at the bqnkruptcy that would not be on the statement theoretically. We have pretty much exhausted your original question and even moved on the edge of different areas.
I did not mention that because as I said it was on the edge. If you need no further info that is in the subject of your original posted question "Do I need to claim this income even though it wasn't my money? Thanks so much for your direction. You are most welcome. My goal is to give you excellent service.The authority of a bankruptcy trustee to claim a post-petition windfall on In a Chapter 7 case a Debtor had purchased a lottery ticket prior to. EDIT: None of my business, but you are in a C7. Why are you gambling? What got you into C7, gambling? If so, you will be back. My casino-bestgold.xyzng winnings during chapter 13 - Bankruptcy. I generally avoid political discourse in this space. Casino gambling, and legalized gambling in general, has been a hot button issue in.