Page 8 - March 2005 • Southern California Gaming Guide

SOUTHERN CALIFORNIA GAMING GUIDE
Save on Taxes—Keep a Gambling Diary! by Bill Burton
Tax time is here and if you were one of the lucky people who won money at the casino, you may nd you aren’t so lucky when you go to ll out your taxes. Uncle Sam loves to share in your joy by claiming a bite of your winnings for himself. at is exactly what happens
to many “winners” each April 15th, who don’t keep a gambling diary or logbook.
Column: About Gambling with Bill Burton
e IRS requires casinos to report any wins over $1,199 on slot and video poker machines or other games such as keno, lottery or horse racing on a W-2G form. is form lists your name, address and social security number. e casino requires proper identi cation before you are paid your jackpot. is is the reason you should always carry a valid form of identi cation with you when you visit the casino.
A copy of the W-2G goes to the IRS, and you are required to list these winnings when ling your income taxes. e law allows you to deduct gambling losses up to the amount of your winnings. You can only do this if you have documentation of your losses. Keeping a diary or logbook, is the way to do this.
my sessions in a small notebook that I carry with me to the casino. I then transfer this into a spreadsheet on my computer when I get home. If you don’t have a computer, a notebook will do.
In most cases the IRS will accept this log; however, I am not a CPA and the best advice I can give you is to consult a professional if you do have a big win.
If you don’t keep a logbook already, you should start with your next visit to the casino. I once read about a player who nally hit a large progressive jackpot. It happenedonNewYear’sEve.Hehadbeenlosingallyear long, but he had no documentation to prove his losses and was required to pay taxes on the full amount.
Another reason to keep a logbook has nothing to
your playing sessions to help you evaluate your skill level. If you are constantly having losing sessions then you may need to do a little more studying of how to play properly. I have a separate section in my logbook for every game that I play. is helps me to have an accurate accounting at the end of the year of each game so I know which games have been the most pro table.
Many players think that keeping a log is time- consuming; however, it takes only a few minutes and you’ll be glad you did when you hit the big one.
Ben Franklin said,“ e only sure thing is death and taxes.” We all have to pay taxes, but we don’t have to give Uncle Sam any more than we have to.
Until next time, remember, “Luck comes and goes... knowledge stays forever!”
Bill Burton is the Casino Gambling Guide and columnist for the Internet portal About.com. He also writes for several national gambling publications. He is the author of Get the Edge at Low Limit Texas Hold’em available for $15 postage paid. Send checks to Bill Burton, PO Box 310299, Newington, CT 06131-0299 or online at www.billburton.com. Bill Burton’s website is located at: http://casinogambling.about.com.
Join Bill Burton at the Gambler’s Jamboree on May 21 and May 22 at Casino Windsor in Ontario, Canada (minutes from Detroit!) For more information call 1-800-944-0406 or online at www.gamblersjamboree.com.
“Some players tend to remember only the wins and forget about or minimize their losses. It’s not uncommon to hear players say they broke even or had a little loss at the end of the year. Keeping a log will help you put playing in perspective and give you an honest account of the
money you are spending for your casino entertainment.”
A proper log should contain:
1. e type of game and serial number of the machine you played
2. e date and location where you played
3. Your wins and losses for each session or game
4. Additional evidence of gambling activities. ( is may
include cancelled checks or ATM receipts from the casino.)
Your log book must be accurate and should be lled
out as completely as possible. I nd it best to record
do with taxes. Keep track of your own personal wins and losses. Some players tend to remember only the wins and forget about or minimize their losses. It’s not uncommon to hear players say they broke even or had a little loss at the end of the year. Keeping a log will help you put playing in perspective and give you an honest account of the money you are spending for your casino entertainment. Knowing that you are keeping track of your losses may keep you from getting carried away and losing more than you should during your casino visits.
If you play a game that requires skill, such as video poker, live poker or blackjack it is vital to keep a log of
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March 2005