I started doing sportsbook promotional harvesting to earn a bit of money, as due to my health I'm unable to work.
This is where you bet Team A loses on one sportsbook and Team A wins on another sportsbook, where the book provided a free profit boost or some such on one side. So, you end up maybe betting $10 on one book and $15 on the other book and coming out with a guaranteed few dollar profit no matter if the team wins or loses.
I will be using a Schedule A as a recreational bettor on my taxes to itemize my losses.
I understand that OBBBA caps losses to 90%. I've done the math, I'll still come out well ahead.
My concern is my HUD rent calculation.
AI is telling me that in the National Church Residences building where I live, their compliance office is very likely to totally disregard my schedule A gambling loss deductions and only include my gambling WINNINGS.
For example,
say my losses for the year are 30k and my winnings are 33k.
After the OBBBA cap, I can claim 27k gambling loss deduction on Schedule A.
This lowers my income from 33k, down to 6k of net income for the year (I have no other income).
Since my net income is 6k, my 30% rent should be $1800/yr or $150/mo.
However, AI is saying that HUD doesn't list gambling losses as one of its allowable deductions/exclusions from income. Thus, my income for rent calculations will instead by the ENTIRE 33k!
So, that's 30% x 33k = 9900/yr or $825/mo!
MASSIVELY higher and seeing how my TRUE income from this promo harvesting is just 3k/yr or 250/mo, having my rent jump up to 825/mo would be untenable.
I realize this is more like a tax-adjacent question, but I am concerned about this and would appreciate any insight.
I live in Ohio.
Thanks so much,
N
