black oak casino income and loss statement

The second reason is indeed more practical. The take away – IRC Section 165(d) is focused on “transactions” and not “totals.” Instead, the gambler must report the $10,000 as other income, and if the gambler itemizes his deductions, then the loss of $9,900 is included as an other miscellaneous deduction not subject to the two percent limitation.

Instead the IRS prefers, yes insists, that gamblers keep a gambling diary (See Revenue Procedure 77-29) and report their activity by “ gambling session” (See IRS Chief Counsel Advice Memorandum 2008-011 for more information).įor example, if a gambler has a $10,000 winning gambling session followed by a losing gambling session of $9,900, the gambler is not allowed to merely report the difference of $100. The Courts and the IRS have interpreted Section 165(d) of the Internal Revenue Code in such a way that gambling activities cannot be reported in a summary fashion. The IRS hates casino win/loss statements for two main reasons – one legal and the other practical.įirst of all, the IRS has the proper legal authority to disallow the usage of most casino win/loss statements.

Black oak casino income and loss statement