Losses sustained during the taxable year on wagering transactions shall be allowed as a deduction but only to the extent of the gains during the taxable year from such transactions. In the case of a husband and wife making a joint return for the taxable year, the combined losses of the spouses from wagering transactions shall be allowed to the extent of the combined gains of the spouses from...
Taxation of Gamblers
The taxation of gamblers, whether recreational or professional, is not difficult, but it is technical. As a result, many tax professionals, software vendors, casinos, and government employees frequently miscalculate a taxpayer’s wagering gains or losses.
The purpose of this website is to provide the necessary information so taxpayers and tax professionals can understand the “legal theory” involved in order to properly report the amount of wagering gains and losses and ultimately determine the correct amount of tax that a gambler may owe.
The information provided starts with the Sixteenth Amendment, ratified in 1913. It then follows the evolution of this topic as reflected in over 100 years of statutes, court cases, regulations, procedures, magazine articles, seminar material, and personal experience.
If you do not have time to digest this information immediately, you may contact us at:
Morrel Law PLLC
6846 S Canton Ave Ste 777
Tulsa, OK 74136
(918) 553-3333
