What do you need to claim 2.3 million in gambling winnings and 1.2 million in gambling losses ? Are these amounts trigger items even with the proper documntation

[rjs · Accepted solution]

What you need is a good professional tax preparer who is familiar with gambling issues. At that level of winnings, preparing your tax return is not a do-it-yourself project.

[macuser_22]

I agree that you need professional guidance.

For some information as to what you need refer to IRS Pub 529, starting on page 12.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p529.pdf">https://www.irs.gov/pub/irs-pdf/p529.pdf</a>

Quote
"Gambling Losses Up to the Amount of Gambling Winnings

You must report the full amount of your gambling winnings for the year on Form 1040, line 21. You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. You can't deduct gambling losses that are more than your winnings. Generally, nonresident aliens can't deduct gambling losses on Schedule A (Form 1040NR).

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.

Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings.

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.

Proof of winnings and losses.   In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings; Form 5754, Statement by Person(s) Receiving Gambling Winnings; wagering tickets; canceled checks; substitute checks; credit records; bank withdrawals; and statements of actual winnings or payment slips provided to you by the gambling establishment.
end quote

See the PUB for additional text.

[SweetieJean]

I agree as well. Based on many prior Q's, it appears OP may be a professional gambler.

[macuser_22]

A professional gambler should know exactly what is required to satisfy the IRS.  Part of being a professional is to know the rules of your profession.

[LUCKY582]

1 . Im not a professional. 2. The tax laws are contradictory and confusing as it pertains to what all wins and all losses are,  concerning filing as a  a professional or a novice. And 3, the requirements for what proof is, and the amount and type  of documentation is decidedly different for a Professional . I'm looking for additional input for clarification concerning wins and  losses  as to whether I can file as a professional or a novice .

[SweetieJean]

Your many questions go beyond the scope of this forum for users of this self-prepared income tax software tax program. Please see a local professional.

[rjs]

A tax professional who is familiar with the rules for gambling will be able to resolve the confusion about how to account for wins and losses, and tell you how to file and what documentation you need.