A little tax advice please ;)

SluggoJD · Post by **SluggoJD** » Sat Jan 19, 2008 2:12 pm

Guys,

Just wondering about a couple of things while doing my taxes this weekend...

1. What kind of form 1099 do we receive from Krause - 1009 MISC?

2. Where do we put what our "expenses" - entry fees, etc? Other losses? As part of the dreaded 2% thing?

I appreciate the advice,

John

Top Dawg · Post by **Top Dawg** » Sat Jan 19, 2008 3:32 pm

John - 1099 Misc is correct. Dreaded 2% thing is the best I could ever find to use. Add in everything, including any mags, sites or other you joined or paid for. Add in mileage, parking, and anything else too.

Winning is great until Aril 15th.

Pete

Richie · Post by **Richie** » Sat Jan 19, 2008 3:47 pm

AQny7 accountants on this board? W@hat about doing a Schedule C, Profit and loss from business. Thats the way I would do it if i were good enough nto win something

Edwards Kings · Post by **Edwards Kings** » Sun Jan 20, 2008 1:35 am

You need a tax accountant to be specific (I am a CPA, but would never presume to give tax advice as it is out of my expertise).

From what I recall from others wiser (and winners), income derived from fantasy sports is treated as "hobby", not a business, for most of us. Take this for what it is worth as third hand information.

CC's Desperados · Post by **CC's Desperados** » Sun Jan 20, 2008 3:44 am

I'm not a CPA or tax expert, but I have done my taxes for a few years.

I would use the income on a schedule c. I have titled it as fantasy sports(there isn't a code for this business type. You can use 999999 which is used if it doesn't fall into a category). You can input the income, then list your deductions in the misc. expenses area. I would deduct any costs for travel, lodging, research material, entry fees, and other expenses you have related to playing.

[ January 20, 2008, 09:46 AM: Message edited by: CC's Desperados ]

Potter · Post by **Potter** » Sun Jan 20, 2008 6:12 am

Asking the board about tax advice and getting a response from CC's Desperados is akin to asking the board how to improve self esteem and getting an answer from Gekko. Anyone who answers the question after they have responded is either wrong or redudndant.

SluggoJD · Post by **SluggoJD** » Sun Jan 20, 2008 6:29 am

CC's, I understand and agree that sounds correct. I'm sure all of us don't spend these large sums of money to enter NFBC events just for the fun of it (hobby) - we do it in order to make a profit...at least I do lol.

Thanks to all you guys for your ideas.

John

viper · Post by **viper** » Sun Jan 20, 2008 6:45 am

In 2005, I used a schedule C-EZ. I am not an accountant but I work for a CPA/Tax lawyer who specializes in taxes [about 900 personal and business clients]. I do my return using the company software and he reviews it. The 2005 schedule C-EZ form indicated that if the amount of expenses increased enough, you would have to use a regular Schedule C instead.

You are supposed to claim any winnings even if you do not get a 1099. If you do get a 1099, even if the amount is under the minimum you would usually get a 1099 for, you damn will better show it somewhere on your return. Computer matches are hell and once that form is sent to the IRS, it is in their computers.

cfolson · Post by **cfolson** » Sun Jan 20, 2008 5:51 pm

My wife is a tax specialist. We file a Schedule C. Yes, I suppose this is redundant...

KCsALLSTARS · Post by **KCsALLSTARS** » Mon Jan 21, 2008 3:41 am

Just a quick question. Can you go back 2 years to offset the winnings? If you won $5000 but had only $3000 in losses for that year, for instance.

Thanks,

KC

Asumijet · Post by **Asumijet** » Mon Jan 21, 2008 4:22 am

I hear some of you out there might be gambling experts... Any tips or advice on offsetting a modest, but yet reported 1099 gambling win? I know I lost money at the tables, but they don't give a receipt when you split Kings and lose both hands.

viper · Post by **viper** » Mon Jan 21, 2008 8:50 am

KCsAllStars - Again I only work for a tax lawyer. I am pretty sure each year is a separate event. This isn't like a real business where you file a corporate return. As an individual, you are a cash basis taxpayer and each year is unto itself, except for certain specific deductions on investment losses that are carried over due to maximum amounts you can claim annually as losses. [There are probably other exceptions that I am not aware of but this ain't one of them].

You should have claimed your $2000 of income two years back and that is that.