I have a tax client that is a huge gambler. I have received several documents from them including the following:
Casino 1
Coin in- $2,838,611.25
Coin out- $2,468,847.73
Jackpots $366,502.00 (what the W2G shows)
Estimated loss (win) $3,261.52
Question. Do I minus the total losses from the Jackpots and that is his/her total winnings? The only loss I am calculating is $3,261.52? That is what I gather from the information received. The tax client is saying to add the jackpots and the losses together as the total loss.
Casino 2
Slot Statistics:
Coin out- $2,200,440.98
Jackpots- $196,770.00
Coin in- $2,494,720.26
Estimated SLOT
win(Loss)- ($97,509.28)
Table games
Win(loss) $4,230.00
Total win(loss)- ($93,279.28)
W2G-$201,220.00
Question: I am reporting the $201,220.00 as income and reporting the loss as $93,279.28 totaling a total gain of $107,940.72.
My tax client is saying that the overall loss was $93,279.28 and there was no win at all. There was only losses but I am not gathering that.
Please HELP! I have been doing it the above way for as long as I can remember but they are in hot water with the IRS and cannot owe again for previous year troubles. If I am incorrect, great! I just want to double check before I risk my PTIN and business on someone trying to stay out of hot water.
