CPAguys, how do I offset my FF winnings? (1 Viewer)

[pizzatyme]

I won over $10K this year in FF and am thinking I can itemize the expenses it took to win this, no?

Here are some of the expenses involved:

Flight to Vegas

Hotel

Meals

Rental Car

Entry Fees

Am I correct in thinking this? What other items could I include?

Any other tips?

I know, I need to consult my accountant (disclaimer), but I'm trying to get prepared if this is possible.

Help?

 

[Steve Tasker]

FF winnings would be considered gambling winnings, meaning that unless you're considered a professional gambler (which I'm assuming you're not), the only thing you're going to be able to use to offset the winnings are gambling losses. You'd need to have a documented record of your losses during the year.

Also note that you can only deduct gambling losses if you itemize your deductions on Schedule A (real estate taxes, mortgage interest, charitable contributions, etc.). And you're also only able to deduct losses to the extent of winnings - meaning that if you lost $15k during the year but won $10k on FF, your net would be $0. You don't get any benefit for the additional $5k losses.

ETA - in case it was unclear, based on a very limited understanding of all of the facts, my first inclination is that none of those things you've listed are deductible.

ETA #2 - this is not official tax advice, consult an accountant, etc etc Circular 230 disclosure.

 

[Dan Lambskin]

Assuming you are receiving a w2g (or maybe 1098-misc) then the above advice is correct

My tax attorney told me one time I could potentially set up an LLC for fantasy sports, but seemed like more trouble than it's worth, especially since I didn't want to include any "off the books" leagues

Also you'll only need to provide documentation on losses if audited

 

[eoMMan]

FF winnings would be considered gambling winnings, meaning that unless you're considered a professional gambler (which I'm assuming you're not), the only thing you're going to be able to use to offset the winnings are gambling losses. You'd need to have a documented record of your losses during the year.

Also note that you can only deduct gambling losses if you itemize your deductions on Schedule A (real estate taxes, mortgage interest, charitable contributions, etc.). And you're also only able to deduct losses to the extent of winnings - meaning that if you lost $15k during the year but won $10k on FF, your net would be $0. You don't get any benefit for the additional $5k losses.

ETA - in case it was unclear, based on a very limited understanding of all of the facts, my first inclination is that none of those things you've listed are deductible.

ETA #2 - this is not official tax advice, consult an accountant, etc etc Circular 230 disclosure.

Steve is correct.

 

[xulf]

Another agreeance with Steve.

 

[pizzatyme]

Thanks Steve!