Category Archives: Gambling

He Gambled and He Lost (In More Ways than One)

Posted on May 23, 2007 by Russ

I’ve repeatedly said that gamblers aren’t treated well under the Tax Code. One Michigan resident allegedly had a way around this problem: just ignore the gambling. This may turn out to be a much bigger problem, as he now faces … Continue reading →

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What If a Casino Decides to Ignore the Rules?

Posted on May 17, 2007 by Russ

Suppose you’re a poker player, and you are backed (sponsored) by a friend. You’ve agreed with your friend that for the money that he has given you, you will give him 50% of your winnings. You complete the IRS Form … Continue reading →

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Humorous Mail During Tax Time

Posted on April 26, 2007 by Russ

It’s always amazing to read the mail. I’ve received several items (mainly by email) that are interesting. So let’s take a look at some of the mail. Of course, none of the answers are specific tax advice; anyone needing specific … Continue reading →

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Illinois Casino Tax Ruled Unconsitutional

Posted on April 8, 2007 by Russ

Last year, Illinois added a new tax to help the horse racing industry. The tax required Chicago-area casinos that make over $200 million a year to remit 3% of their gross revenues to a fund benefiting Illinois’ nine horse racing … Continue reading →

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New York Loves Gamblers

Posted on April 8, 2007 by Russ

New York is known as a high-tax state. Those who live in New York City or Yonkers must pay state and city income tax. That’s bad. The amateur gambler is in for a surprise, too. While New York allows itemized … Continue reading →

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Wisconsin Is No Place to Gamble

Posted on March 29, 2007 by Russ

I grew up in Chicago, and I remember vacationing at Wisconsin Dells as a child. Now Wisconsin, like many states, sports Indian casinos. Gamblers who patronize such casinos are in for a rude surprise when they complete their tax returns. … Continue reading →

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No Alchemy for Lottery Winnings…Again

Posted on March 28, 2007 by Russ

The 2nd Circuit joined the 3rd, 9th, and 10th Circuit Courts of Appeal today and won’t allow a lottery winner to turn ordinary income into a long-term capital gain. We’ve written about this before (see here and here). The question … Continue reading →

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Neteller and Constructive Receipt

Posted on March 27, 2007 by Russ

As the saga of Neteller, the Isle of Man based financial intermediary, drags on, I’ve gotten many questions regarding the money that’s tied up. For those who are unaware, some of the Neteller money was seized by the US government … Continue reading →

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More on Neteller

Posted on March 21, 2007 by Russ

Neteller, the beleaguered Isle of Man financial intermediary firm whose two founders were arrested on money laundering charges in the United States, announced that they have come to an agreement with the US Attorney’s Office for the Southern District of … Continue reading →

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In The News…

Posted on March 6, 2007 by Russ

CCH’s Federal Tax Weekly has an article on the Tschetschot case. My comments are included in the article. There were two major surprises in the decision: – The IRS conceded that Mrs. Tschetschot was a professional gambler even though she … Continue reading →

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