PhantomChaos

If you actually win cash in a Poker Run, are they required to send you a 1099?

Thanks for your input!

GLH

Good question for the organisers, I don't think it would make you popular!
Then again all the boat related expenses and the entry fee becomes deductible then, they are associated to the revenue!

HyperBaja

Im sure some are. Also sure some arent.

jdnichols

Hey Nort,

Good question! Depends on your location I guess. Anything over a certain amount. Like $1000.00

At AHBA we have ever since startup five years ago. Our accountant does it as part of our tax filing. Isn't SCOPE required to as well?

Jim

SCOPEwebmaster

SCOPE does not.......perhaps the difference is that we are NON-Profit? What about the Smoke On The Water and other poker runs. We've been doing our Poker Run for 11 years with the Grand Prize being $10,000 (to one person) and never has a 1099 been done. Are you sure your CPA is "on the money" with this?

Any input from other poker runs?

impulsive

I would assume that a "POKER RUN" would be considered as gambling. I'm sure the smaller poker runs would not issue a 1099 but the larger ones will. Alot of poker runs are for charity so i'm sure you could donate some of the money back to the charity for a tax deduction. Your tax deduction might cancel out your winnings. Also, if you decide to donate all of your money back to the charity a good accountant could find a way to deduct your entry fees end expenses.

THE BASICS OF THE GAMBLING TAX LAWS


Gambling winnings are taxed by both the IRS and by many states.

All winnings from all forms of gambling are taxable and must be declared as income on your tax return.

All losses from all forms of gambling are deductible as an itemized deduction for recreational players, limited to the amount of winnings declared.

Professional gamblers hold file as a self-employed business using Schedule C.

The value of "comps" received are considered to be gaming winnings and should be included in your total winnings. This does allow you to deduct gaming losses to offset the income from the "comps."

Wins and losses are reported only in the year they occur. Excess losses cannot be carried forward or back to offset winnings in other years.

Married couples filing a joint return must combine their winnings and combine their losses, and report only one figure for each.

The IRS has issued instructions that "lumping" is unacceptable. "Lumping" is the practice of reporting one net win figure and no losses, or reporting nothing if your net from gambling is a loss. You must report the total of your winning sessions separately from the total of your losing sessions.

The IRS requires that an accurate diary or similar record must be maintained for substantiating your wins and losses, and that the diary should contain at least the following information: (1) the date and type of your specific wager; (2) the name of the gaming establishment; (3) the address or location of the gaming establishment; (4) the names of the other person(s), if any, present with you; (5) the amount(s) you won or lost.

The IRS also requires that in order to substantiate your diary, supplemental records are required, including the following (these records are not to be submitted with your return, but will be needed should you be audited): (1) W-2Gs; (2) wagering tickets or receipts; (3) canceled checks; (4) credit card records such as cash advances; (5) bank withdrawals; (6) any receipts provided by the gambling establishment.

The IRS form W2-G is issued to players and is also sent to the IRS by the casino for certain gambling winnings: (1) winnings of $600 or more from state lotteries, horse racing, dog racing or jai alai and other wagering transactions, if the winnings are at least 300 times the wager; (2) winnings of $1,200 or more from bingo and slot machines; (3) winnings of $1,500 or more from keno, less the amount of the tickets bought on the winning game; (4) winnings of $600 or more from horse racing, dog racing or jai alai, if the winnings are at least 300 times the wager.

W2-Gs are not require for winnings from table games such as blackjack, craps, pai gow, baccarat and roulette, regardless of the amount.

Casinos and card rooms are subject to the "money-laundering rules," and must report aggregate cash transactions of $10,000 or more in any one day to the IRS. They also can make out such reports for amounts as low as $2,000 if they are suspicious. Once a casino has your SSN and ID on record, they can issue these Cash Transaction Reports (CTRs) without your knowledge.

Ted G

iTrader: (1)

Gee, I was not aware that cash was exchanged at poker runs

impulsive

Although this would not apply to me because I could not win anything

PhantomChaos

Intersting info......does anyone think about this when entering a poker run??? I had NEVER thought of this!!!!

What about these HIGH dollar poker runs?

mpally

A couple of thoughts. First of all, the limit for 1099's is $600. I am not sure why it would matter if the poker run is for profit or not. Even if the poker run was non-for profit, payments made by the organization to outsiders would require a 1099 if it was over $600. Also, I don't think there is anyway you could justify deducting expenses such as fuel, lodging, food, etc. associated with a charity poker run. You may be able to deduct the entry fee, but I think that would be the limit that I would feel comfortable with deducting if I was signing the return.