I just got my ass beat playing blackjack can I write the loss off?

Discussion in 'Professional Trading' started by WhiteOut56, Jan 3, 2013.

  1. I know that you can write off gambling losses up to your gambling winnings.

    Assuming trading is gambling as I trade prop can I write this loss off from the k1 I receive?
  2. ofthomas


    trading isnt gambling(I dont know about what kind of trading you are doing bud! :)), and you can actually write off your losses depending how you are classified... you should consult your accountant or reach out to these guys...

  3. cml2949


    What products do you trade and did you make a profit the previous
    year ?

    Say you trade futures ..

    Made a profit in 2011 and took a loss this year 2012.

    Well if you made 50k in 2011 and loss 40k in 2012, you can get back

    up to 40k of what you paid in taxes 2011 plus interest ..

    In futures you can roll losses backwards or forward.
  4. antaram


    Who said you can offset gambling losses to winnings? Can you give the source? To my knowledge you could do this only if you are a professional gambler.

    For non-professional gamblers each session is taxed separately. For example if I sit at 1-2 nolimit poker table and win 1000 dollars, take it and go to another table, lets say 2-5 and lose, I owe taxes on the 1000 won, and can only use a part of the loss (I forgot the exact amount, 300 or 600 dollars) as a loss.
  5. Topic 419 - Gambling Income and Losses
    The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income .

    A payer is required to issue you a Form W-2G (PDF), Certain Gambling Winnings, if you receive certain gambling winnings or if you have any gambling winnings subject to federal income tax withholding. All gambling winnings must be reported on your Form 1040 (PDF), including winnings that are not subject to withholding. In addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax.

    You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A (PDF), as a miscellaneous itemized deduction that is not subject to the 2% limit. A nonresident alien of the United States cannot deduct gambling losses on Schedule A of Form 1040NR (PDF).

    It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

    If you are considered a nonresident alien of the United States for income tax purposes and you have to file a tax return, you must use Form 1040-NR. Refer to Publication 519, U.S. Tax Guide for Aliens, and Publication 901, U.S. Tax Treaties, for more information.

  6. querry


    How many years?
  7. cml2949


  8. ofthomas


    OP... I hope you do listen to this advice.. the only one that matters... talk to an accountant that deals with traders.... see the prior link...
  9. lol truly the gamblers on here. quite a sight.