I have two distinct lives. One in the trenches of low-budget film and television, the other in professional gambling. Because of the feast-or-famine nature of show business I need a reliable income... gambling. So here you will read about both worlds. Enjoy!



Thursday, July 13, 2017

Gambling With an Edge - guest tax man Russell Fox

Our guest this week is Russell Fox.  Russell is a certified tax professional who handles many professional gamblers. We talk about strategies that effect people with gambling income.

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Show Notes

[1:00] Can professional gamblers use IRA accounts to even out year-to-year fluctuations?
[5:20] 4 ways for non-US players to retrieve the 30% of money that is withheld due to W2G’s
[8:26] Is it a taxable event if you pick up as cash $100 worth of cash-back or free-play?
[11:19] In case of winning a drawing for $10,000, is there any tax difference between receiving cash with a 1099 form and free play without a 1099 form?
[14:43] For professional gamblers using schedule C on US tax return, what qualifies as legitimate schedule C business expenses?
[17:08] You play enough to get a "free” cruise which costs $600 in taxes, port fees, and gratuities. Assume the cruise has a retail value of $2,500 plus the $600 in fees. Is there any part of this cruise that is taxable?
[21:01] Assume you’re a video poker professional and you decided go on a cruise ship and lose $4,000. The casino gives you another cruise. Is any part of that $4,000 deductible? Is it actual losses rather than the daily amount?
[22:31] Claiming more losses than what shows on W2G’s and the importance of keeping records.
[24:36] Implications on W2G’s when giving the casinos an address other than the actual home address such a P.O. box. Is there a problem?
[29:00] How would Trump’s new tax plan affect gamblers?
[31:43] Will the W2G’s $12,000 threshold increase in the foreseeable future in order to keep up with the inflation?
[32:20] The difference in the W2G threshold amount for jackpot at the tracks and the casinos
[37:41] Can you correct W2G errors after the fact? Can casinos refuse to provide the W2G’s after the fact?
[40:50] What are the W2G rules on electronic table games?
[47:42] Russel's 5 “Bozo Tips,” why keeping cash in a deposit box could cause trouble, and when CTR’s are your friends.

You can contact Russell Fox at rcfox@claytontax.com 
You can visit his website at Claytontax.com or http://www.taxabletalk.com/

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