Tax Issues and Gambling?
April 7, 2009
Meg Bromo asked:
Charley visits Reno, Nevada once each year to gamble. This year his gambling loss was $15,000. He commented to you, “At least I didn’t have to pay for my airfair and hotel room. The casino paid that becasue I am such a good customer. That was worth at least $2,500.” What are the relevant tax issues for Charley?
Charley visits Reno, Nevada once each year to gamble. This year his gambling loss was $15,000. He commented to you, “At least I didn’t have to pay for my airfair and hotel room. The casino paid that becasue I am such a good customer. That was worth at least $2,500.” What are the relevant tax issues for Charley?
3 Responses to “Tax Issues and Gambling?”
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April 9th, 2009 at 12:58 pm
Nothing. “Comps” from the casino are promotional items they pay for to induce Charlie to come to Reno. It is an extreme example of the low hotel room rates found in casinos there. Bigger losers get bigger gifts to encourage them to come up and spend more. I went to Reno last year and was offered a three star hotel room for $17 night plus two for one in the restaurant to induce me to spend money gambling. It was a great deal but I was a whole lot more parsimonious with my money than Charlie was and figure I really came out ahead.
April 12th, 2009 at 7:23 am
Well his gambling losses are only deductible to the amount of his winnings, so taxwise, no advantage.
April 12th, 2009 at 10:26 am
I would think it would be income. I will check