Reply To: Gambling losses?

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#5109
kaneohe
Participant

seems to me that even in the old days declaring a “net”gambling win (offset w/ loss) is like declaring a “net capital gain” (offset gross proceeds with basis) and omitting basis.

In the latter the math is correct but IRS will see that the gross proceeds do not agree w/ the 1099B and will come after you for more. Still you can show the correct reporting w/ basis declared and gross proceeds and prove you are correct.

In the base of gambling, IRS again will see that your reported winnings do not match the W-2G and discover that you are not reporting losses properly.