Gambling taxes

[POKERKAT]

I just read that the new trump bill changes the taxes on gambling to only being able to deduct 90% of your losses. So if you win $1200 and lose $1200 you will still have to pay taxes on 10% of the win. This will suck for the high rollers and even us little guys. I was hoping the taxable amount would be raised instead, this is lousy.

[felix]

The gaming industry's lobbyists were very optimistic that the federal non-taxable win limit would be increased from $1250 to $5000, to take into account the inflation that has occurred since the last increase many years ago.
Rather than having the non-taxable win limit increased, instead a surprise 10% reduction in loss declaration occurred! My understanding is that the gaming industry's lobbyists were just as surprised as we (casino patrons) are. Nevada and Vegas in particular have been very good to Trump, not just in terms of votes but also in terms of massive campaign donations, so this was a very stunning and unexpected development.

[olds442jetaway]

What makes it even worse in my State ( CT ), I’m already paying 7 percent on Gross gambling winnings with no write off ability at all. On tįhe Federal side, I get whacked to the tune of 22 percent on that 10 percent.

[atomic2025]

What makes it even worse in my State ( CT ), I’m already paying 7 percent on Gross gambling winnings with no write off ability at all. On tįhe Federal side, I get whacked to the tune of 22 percent on that 10 percent.

You have been complaining about your local taxes for years. You have been losing for years and why would you still gamble then?

[olds442jetaway]

You are correct. Doing much better this year with discipline more under control. The Sate taxes are just an extra bummer. Part of it is the enjoyment factor. Staying free 100 days a year and everything paid for offsets the losses mentally except for the unfair tax part. I haven’t checked, but I would bet my last nickel that all of the States that tax gross gambling winnings with no or almost no write off ability are lib/dem States. The BBB bill now signed into law just adds insult to injury.

[olds442jetaway]

Legislation called “ The Fair Bet Act “ has been introduced to bring back the gambling deduction the way it was before the BBB. Evidently, the Senate snuck in the 90 percent limitation before the bill went back to the House to be submitted for Trumps signature. Guess we will have to see how it goes.

[felix]

Olds, even the way it was before BBB is still unfair, due to inflation since the $1250 limit was enacted. If you factor in inflation over time, a $5000 limit is completely fair. And that is what the gaming industry lobbyists were seeking ---- not a brand new 10% penalty!
As I wrote earlier, this is particularly hard to understand because Nevada has been a very strong supporting state for Trump. This is a slap in the fact to the largest economic engine in Las Vegas. Congress needs to eliminate the new 10% tax and at the same time increase the $1250 taxation threshold to $5000.

[olds442jetaway]

Agree. And as far as the States go, mine being one of the worst, taxing Gross Gambling winnings without a writeoff ability is criminal to me. Not only that on the Fed side, why should you have to itemize your deductions to deduct gambling losses at least up to how much you won??? If you sell a stock at a loss, you don’t have to itemize to write off that loss. They will never do it, but I prefer a pay as you go tax system. No tax returns required period. Theycould make it very easy and the rich people buying all kinds of yachts and other luxury items would pay the most income tax. They could easily exempt food, basic baby items, and a few other necessities. Will never happen in my lifetime. Most limits the Feds have are not indexed for inflation so they have an automatic built in tax increase every year.