Let’s face it, for the most part, when it comes to gambling, the house ALWAYS wins. That means that most people will have a loss. And if you don’t track your losses, you cannot deduct it. So for example, you won $5,000 but you lost $5,000. So you basically broke even. If you do not claim your losses, you will be taxed on the $5,000 you won. You would think the casino would also report your losses along with your winnings. But they don’t. YOU ARE RESPONSIBLE for tracking your losses.
If you gamble, we suggest and strongly recommend that you keep accurate records. The IRS says, “You should keep accurate records. If you are going to deduct gambling losses, you must have receipts, tickets, statements and documentation, such as a diary or similar record of your losses and winnings. So be mindful when you go to the casinos and track all of your WINS and LOSSES.
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