DEDUCTING GAMBLING LOSSES

Casual gamblers must net their winnings or losses on a daily basis when figuring their taxes, the Tax Court says.

"A couple played the slots on occasion. On one day, they hit a $2,000 jackpot and netted $1,100 for the day.

They lost a total of $2,264 on their other trips. In the Court’s view, the $1,100 in winnings is taxed as income and the offsetting $1,100 in losses can be claimed as an itemized deduction. However, since the couple took the standard deduction,they cannot write off the $1,100 in losses (Shollenberger, TC Memo. 2009-306)."

Remember, too, that gambling losses in excess of winnings cannot be deducted.