Video Poker Avoiding Tax

After losing tens of thousands playing VP over the last few years I finally show a win for 2017. My tax person doesn't seem very knowledgeable about gaming wins and how to minimize the tax bill on them. Does anyone here have any sound advice on minimizing the tax bill on yearly wins?

 

Try Sandy Mason. SHe does all the taxes for all the professional gamblers in town. There are also tricks to generate fake losses, but I can’t recommend that as it is illegal. Of course the way the IRS won’t let you right off losses from previous years should also be illegal and isn’t. It makes no sense...

 

"Legal" is one thing. Doing something I can get away with is another. I never "cheat" on my tax return. I definitely feel an obligation to contribute but taxing gambling wins just unfair given you cannot write off losses except to offset wins. This is because the IRS has determined it's impossible to win over the long term but they are more than happy to nick you on short term spikes. Canada does not tax gambling wins. Our government should recognize the difference between fair taxation and out and out opportunistic gouging...like Canada has.

 

I'm assuming you're not filing as a professional gambler. In that case, if your contemporaneous gambling log does not show an overall "tie" or net loss, then in all likelihood you will be paying at least some tax on your net win.

That said, I know LOT of recreational gamblers who admit to me that they "cheat" when they have winning years....by inserting losses into their logs that just did not occur. This is a crime however, and anyone who does this belongs behind bars (and I'm not talking about the kind mickey's used to)

 

Thanks for the replies. I will take both under consideration.