Win/Loss Statement W/Jackpots

Forum|Forum|6 years ago
October 20, 2019
2 replies
52 views

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.

Anonymous_

Level 15

@tkhodge wrote:
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.

Clients that are being less than forthright and forthcoming with documents and facts are really not worth retaining as clients.

Regardless, as a tax professional, you should post your question on one of Intuit's boards for tax pros.

https://accountants-community.intuit.com/questions?filter=&sort=last_activity

Anonymous

the IRS requires that ALL winnings be reported on 1040 schedule 1 line 21. all losses up to the amount of winnings is reported on schedule A line 16.

the estimated wins/losses are net

casino 1 net cash in = gross losses $369,763 ($2,838,611-2,468,848)

jackpots = gross winnings $366,502

net loss $ 3,261

casino 2 net cash in = gross losses $294,279 ($2,494,720-2,200,441)

jackpots and net table = gross winnings $201,220

net loss $ 93.059

not sure about w2g since $196,770 + $4,230 = $201,000

one thing to consider if you are preparing his return for compensation, does the income he's reporting support the net losses. if not does he have other sources that are not taxable

so for reporting line 21 on schedule 1 about $568,000 with an offsetting amount on schedule A line 16