Taxable income comes in many forms. People who are lucky to win on game shows, sweepstakes, lottery, or at the blackjack table often fail to plan or consider the tax liabilities that come with winning money. Gambling winnings from gambling are considered taxable income; therefore, gambling losses, with specific limitations, may be tax deductible. The tax law firm of Lana Kurilova Rich PLLC will guide you through the complex rules and IRS regulations regarding Gambling income.
Deducting gambling losses:
- You can claim a deduction on losses equal to or less than winnings, but not greater than your winnings for the tax year.
- The burden of proof is always on the taxpayer to prove how much money you lost while gambling. The casinos will report your winnings to the IRS, but they do not know about, and are not required to report any of your losses. Thus, if you do not keep track of your losses and cannot prove them, you may be paying taxes on the income you really truly never had. Therefore, keeping accurate records that detail and account for your gambling winning and losses is very important. If you are claiming gambling losses that you are unable to substantiate, the IRS may disallow all or some of those deductions and charge you additional tax, long with substantial interest and penalties.
Defending Clients form and IRS Audit
The tax law firm of Lana Kurilova Rich PLLC has many years of experience and success representing client against the over-reach by the IRS. Our tax lawyer will skillfully defend and protect your rights. She will build strategies based on the latest tax rules and regulations and use every advantage at your disposal to achieve the best outcome possible.
Regardless of whether you are an amateur or a professional gambler, if you have income from gambling, it is subject to taxation. Call The tax law firm of Lana Kurilova Rich PLLC to ensure you can successfully defend your position on your tax return if your return is selected for the IRS audit.
