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I read through some old posts about this topic, but think I better get some clarification before filing. I did not have any winnings in football or baseball with the NFFC/NFBC in 2013.
Can I claim the entry fees on my taxes? If yes, where?

GetALife wrote:I read through some old posts about this topic, but think I better get some clarification before filing. I did not have any winnings in football or baseball with the NFFC/NFBC in 2013.
Can I claim the entry fees on my taxes? If yes, where?

Survey says "NO"

If you have a question, it is always best to check with a tax accountant. What I am comfortable with for myself and from my reading on the topic, I treat NFBC/NFFC fantasy sports as a "Hobby". You may be able to offset Hobby Income with your Hobby Expenses, but only to the extent of your Hobby Income. No Hobby Income, no hobby expenses are deductable.

Just my opinion.

Edwards Kings wrote:If you have a question, it is always best to check with a tax accountant. What I am comfortable with for myself and from my reading on the topic, I treat NFBC/NFFC fantasy sports as a "Hobby". You may be able to offset Hobby Income with your Hobby Expenses, but only to the extent of your Hobby Income. No Hobby Income, no hobby expenses are deductable.

Just my opinion.

I don't think you MUST have income in order to claim expenses. For example, if I start a business and spend thousands on start-up costs; but I never make one sale of my product.....those expenses are certainly deductable from say any other income I had in the year NOT related to that business. It has to be so.......right? Ha ha ha.....probably not with Uncle Sam.

Actually there is a difference in the way you treat "business" expenses and "hobby" expenses. And be careful, there are regs out there on what consistutes a business.

This is my understanding...
Fantasy sports is a hobby for most of us and is considered by the IRS as a "Passive" rather than an "Active" activity. As such we can deduct any of our expenses involved such as entry fees and travel costs against "winnings". However the expenses/losses involved in this hobby can not be deducted against other unrelated income such as wages, dividends and interest.

To move from being a "Passive" to an "Active" activity there are various tests the most important of which is that one must spend at least 500 hours per year on the activity. Once one meets the tests then one can deduct the expenses/losses on this activity against other income.

coldwater coyotes wrote:This is my understanding...
Fantasy sports is a hobby for most of us and is considered by the IRS as a "Passive" rather than an "Active" activity. As such we can deduct any of our expenses involved such as entry fees and travel costs against "winnings". However the expenses/losses involved in this hobby can not be deducted against other unrelated income such as wages, dividends and interest.

To move from being a "Passive" to an "Active" activity there are various tests the most important of which is that one must spend at least 500 hours per year on the activity. Once one meets the tests then one can deduct the expenses/losses on this activity against other income.

What you say makes sense. If you have income from fantasy sports, document and report the net fantasy sports income.

coldwater coyotes wrote: one must spend at least 500 hours per year on the activity.

I am beyond that already this year, if we count number of sleep hours lost....

Deadheadz wrote:

coldwater coyotes wrote:This is my understanding...
Fantasy sports is a hobby for most of us and is considered by the IRS as a "Passive" rather than an "Active" activity. As such we can deduct any of our expenses involved such as entry fees and travel costs against "winnings". However the expenses/losses involved in this hobby can not be deducted against other unrelated income such as wages, dividends and interest.

To move from being a "Passive" to an "Active" activity there are various tests the most important of which is that one must spend at least 500 hours per year on the activity. Once one meets the tests then one can deduct the expenses/losses on this activity against other income.

What you say makes sense. If you have income from fantasy sports, document and report the net fantasy sports income.

Aren't you Canadian? Why are you providing guidance on issues you know nothing about? You can't just net things...

TParsons wrote: Aren't you Canadian? Why are you providing guidance on issues you know nothing about? You can't just net things...

Signed,

Deadheadz

Sure I'm Canadian.
I've lived and paid taxes in the USA.
Do you just post here about things you know nothing about?

The best advice I read here was to consult an accountant.

Deadheadz wrote:

TParsons wrote: Aren't you Canadian? Why are you providing guidance on issues you know nothing about? You can't just net things...

Signed,

Deadheadz

I've lived and paid taxes in the USA.
Do you just post here about things you know nothing about?

Then you reported wrong.

-Deadheadz
A legend in my own mind.

This really could be seen as investment income and investment expenses. After all, we are "investing" in a team of players as if we are buying stock in them. So, if I lose in the stock market not winning one dime in a year, then I believe I can still report that as investment losses on my taxes. I know, I know.....they don't see this as that, and that as this, etc. but it seems to be a grey area that they (Income Rip-off Service) doesn't know how to handle.

Edwards Kings wrote:If you have a question, it is always best to check with a tax accountant. What I am comfortable with for myself and from my reading on the topic, I treat NFBC/NFFC fantasy sports as a "Hobby". You may be able to offset Hobby Income with your Hobby Expenses, but only to the extent of your Hobby Income. No Hobby Income, no hobby expenses are deductable.

Just my opinion.

I have had this discussion with the IRS office and they said fantasy sport is a HOBBY and taxed as such. CANNOT CARRY OVER LOSSES Or write them off against other income.

Roy's Outlaws wrote:

Edwards Kings wrote:If you have a question, it is always best to check with a tax accountant. What I am comfortable with for myself and from my reading on the topic, I treat NFBC/NFFC fantasy sports as a "Hobby". You may be able to offset Hobby Income with your Hobby Expenses, but only to the extent of your Hobby Income. No Hobby Income, no hobby expenses are deductable.

Just my opinion.

I have had this discussion with the IRS office and they said fantasy sport is a HOBBY and taxed as such. CANNOT CARRY OVER LOSSES Or write them off against other income.

Can you confirm that like my poker hobby my winnings are net of what I spent to buy in from what I'm paid out?

You can't net ANY hobby income. The income is reported as "other income." The losses, to the extent of the income, are reported below the line on schedule A as an itemized deduction. There is a huge difference for some taxpayers between above and below the line. You can't just net the losses against the winnings and report the net effect as other income.

TParsons wrote:You can't net ANY hobby income. The income is reported as "other income." The losses, to the extent of the income, are reported below the line on schedule A as an itemized deduction. There is a huge difference for some taxpayers between above and below the line. You can't just net the losses against the winnings and report the net effect as other income.

So high stakes fantasy sports is nothing like walking into a casino with 1000 and walking out with 5000?

If I walk out with the same 1000 I went in with, I didn't win anything.
Must be two different animals.

It is different. Poker is played in sessions. The game isn't over until you end the session. That's why online players must keep a log of their sessions. You still have to report the losing sessions on schedule A if you're an amateur player.

Roy's Outlaws wrote:

Edwards Kings wrote:If you have a question, it is always best to check with a tax accountant. What I am comfortable with for myself and from my reading on the topic, I treat NFBC/NFFC fantasy sports as a "Hobby". You may be able to offset Hobby Income with your Hobby Expenses, but only to the extent of your Hobby Income. No Hobby Income, no hobby expenses are deductable.

Just my opinion.

I have had this discussion with the IRS office and they said fantasy sport is a HOBBY and taxed as such. CANNOT CARRY OVER LOSSES Or write them off against other income.

Really? Because I have too. Nobody there seems to "know" officially how fantasy sports is to be declared. Get transferred several times, they still don't know. They did say "oh that "could" be considered a hobby and blah blah blah", but they really still just don't know. This tax system is a total joke. Tax system? Why are we being taxed again?..................

Reporting for tax purposes is not clear-cut. From reading the tax rules as a business and financial guy (but not an accountant), there are two options that seem to fit best - business income and hobby income. Which you can use are further defined in the tax rules based on fitting or not fitting certain criteria. So if you don't use a tax accountant, the best advice would be read the rules for those two options to find out what fits your personal situation. Reporting as business income is more favorable (and more fair), but the bar is set higher to claim as business income.

KJ Duke wrote:Reporting for tax purposes is not clear-cut. From reading the tax rules as a business and financial guy (but not an accountant), there are two options that seem to fit best - business income and hobby income. Which you can use are further defined in the tax rules based on fitting or not fitting certain criteria. So if you don't use a tax accountant, the best advice would be read the rules for those two options to find out what fits your personal situation. Reporting as business income is more favorable (and more fair), but the bar is set higher to claim as business income.

True, in theory, but most people would never qualify to claim it as business income. It also opens up all kinds of other things, ie- self employment tax.