Do all wagers qualify as "gambling losses"?

[BrightLion_1]

I have read and understand: https://turbotax.intuit.com/tax-tips/jobs-and-career/can-you-claim-gambling-losses-on-your-taxes/L4l...

I am still unclear on what qualifies as a "gambling loss" however.

I received a yearly statement from my online sports betting site (FanDuel). This statement gives my "Amount won" and "Amount wagered" for the year. Does all of the "Amount wagered" qualify as a gambling loss? Or would wagers towards winning bets not qualify as a gambling loss?

[JohnB5677]

Yes,  You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions."

“Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling activity.”  Refer to Publication 529, Miscellaneous Deductions for more information.

You can't reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses.

To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses

Your diary should contain at least the following information.

• The date and type of your specific wager or wagering activity.
• The name and address or location of the gambling establishment.
• The names of other persons present with you at the gambling establishment.
• The amount(s) you won or lost.

These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. They aren't all-inclusive. Your tax liability depends on your particular facts and circumstances..

• Keno. Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check-cashing records.
• Slot machines. A record of the machine number and all winnings by date and time the machine was played.
• Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc.). The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage.
• Bingo. A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.
• Racing (horse, harness, dog, etc.). A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.
• Lotteries. A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.

[BrightLion_1]

Hi @JohnB5677 ,

Thank you for your detailed response! I'd just like to confirm your answer to make sure I am understanding you correctly:

As an example, let's assume I made one bet for the entire year, and I have the proper records according to your description. I wagered $15,000, and took home $20,000. Let's also assume I had no other gambling expenses. I know I must claim $20,000 as my gambling winnings for the year. In this example, would I claim my gambling losses to be $15,000? Or $0, since my only wager that year was for a winning bet?

[JohnW152]

You'd have zero gambling losses for the year, under this scenario, since you actually had no losses. 

All you would report are the $20,000 in gambling winnings.

If you then made a $20,000 bet, for example, and you lost it, you could deduct that $20,000.  If you'd bet $25,000 instead of $20,000 and lost it, you'd only be able to claim $20,000, since that was the extent of your winnings for the year.

[JohnB5677]

You asked the follow-up question: Hi  @JohnB5677 ,

Thank you for your detailed response! I'd just like to confirm your answer to make sure I am understanding you correctly:

Let's assume I made one bet for the entire year, and I have the proper records according to your description. I wagered $15,000, and took home $20,000. Let's also assume I had no other gambling expenses. I know I must claim $20,000 as my gambling winnings for the year. Would I claim my gambling losses to be $15,000? Or $0, since my only wager that year was for a winning bet?

In the example you described you would post $20,000 as winnings.  Then you would post $15,000 as losses on Schedule A itemized deductions.  "Gambling losses (gambling losses include, but aren't limited to, the cost of non-winning bingo, lottery, and raffle tickets)"

Itemized deductions do have many limitations, and it may not result in a full or even partial deduction.