Taxes

Sports Memories · Post by **Sports Memories** » Sat Apr 16, 2005 12:11 pm

Is there anyone who knows what cost can be deducted from the winnings. I have this argument every year with my wife. Can the travel to draft be deducted? etc.

CC's Desperados · Post by **CC's Desperados** » Sat Apr 16, 2005 12:51 pm

Yes, your travel expenses can be deducted.

Evil Empire · Post by **Evil Empire** » Sat Apr 16, 2005 2:33 pm

Yes it can. Any gambling losses can be deducted from the winnings as well.

viper · Post by **viper** » Sun Apr 17, 2005 5:33 am

Important to note is that losses can be deducted up to the extent of winnings. You cannot claim a loss and therefore reduce your taxable income.

JerseyPaul · Post by **JerseyPaul** » Sun Apr 17, 2005 6:12 am

Originally posted by G.C.A.:

Yes it can. Any gambling losses can be deducted from the winnings as well. I don't believe that's true.

Fantasy winnings are not "gambling". They are a side business with revenue and expenses. Other gambling losses are not expenses associated with fantasy sports. Othee fantasy expenses, however, like other event entries, would be appropriate deductions.

Evil Empire · Post by **Evil Empire** » Sun Apr 17, 2005 12:20 pm

If I win I guess I cant withdraw $80,000 put it under my mattress and say I lost it in Vegas. I didn't realize it wasn't considered gambling.At least you can deduct all travel expenses + entree fees, clothing worn, special pens used, etc...

viper · Post by **viper** » Sun Apr 17, 2005 1:15 pm

I don't believe they sent out 1099-G forms to the winners. If so it is gambling winnings. Someone who got one can verify.

If they just sent out 1099-Misc then it is considered hobby income. You can't take a tax loss but you can deduct all your related expenses like travel, entry and other related things as you see fit (lap dances should be classified some way as not to raise an IRS question). My guesss is that you could fairly easily find $2500 in costs that would include paying for services and the like.

I won a Hideki Matsui autographed bat that was proported to be a $850 value. I did not receive a 1099 but I claimed it on my taxes but I had expenses in excess of $850 so I had a net of zero. Just in case a belated 1099 is sent to me.

The bat is available for $600 if anyone is interested.

Terry H · Post by **Terry H** » Sun Apr 17, 2005 1:58 pm

They sent out 1099-misc

CC's Desperados · Post by **CC's Desperados** » Sun Apr 17, 2005 3:09 pm

Originally posted by viper:

I don't believe they sent out 1099-G forms to the winners. If so it is gambling winnings. Someone who got one can verify.

If they just sent out 1099-Misc then it is considered hobby income. You can't take a tax loss but you can deduct all your related expenses like travel, entry and other related things as you see fit (lap dances should be classified some way as not to raise an IRS question). My guesss is that you could fairly easily find $2500 in costs that would include paying for services and the like.

I won a Hideki Matsui autographed bat that was proported to be a $850 value. I did not receive a 1099 but I claimed it on my taxes but I had expenses in excess of $850 so I had a net of zero. Just in case a belated 1099 is sent to me.

The bat is available for $600 if anyone is interested. If you sell it, are you going to claim that income agian?

viper · Post by **viper** » Sun Apr 17, 2005 3:31 pm

why - I have already reported it essentially as $850 income. I've set the basis for the bat at $850. One could argue selling it would be a loss.

[ April 17, 2005, 09:32 PM: Message edited by: viper ]