Taxes for Gambling with Zak Zimbile
Mar 30, 2023If you've got an upcoming Vegas trip or even if you're just betting on your favorite sports team, Zak Zimbile has got some info to share with you! Zak Zimbile is a Certified Public Accountant who runs his own CPA firm, specializing in gambling tax. He's been in the game for over 10 years now and has worked with all sorts of gamblers - from recreational poker players to professional sports bettors and advantage players. Although he's based in Las Vegas, Zak has helped clients from all over the US with their gambling tax needs.
We delve into the impact of gambling on taxes and Zak has valuable tips on keeping track of all gambling activity for tax time and proving losses to an agent. We also tackle the topic of gambling with crypto, acknowledging its complexity and the importance of precise tax reporting. And, of course, we answer the burning question of whether gambling is deductible against winnings for recreational or professional gamblers. Make sure to seek advice from a tax professional for the best approach to handle your gambling income. Tune in for a wealth of valuable insights on the fascinating world of gambling and taxation.
"It's my goal to get in front of it and help players the best they can minimize their tax obligations, since no pun intended, the deck was already stacked against them as it comes to taxes."
In this episode, you will learn the following:
1. How to Qualify as a Professional Gambler and the Necessary Record Keeping
2. The Tax Implications of Gambling in Different US States
3. Using Cryptocurrency for Gambling and the Tax Implications Involved
What you'll hear in this episode:
- What is gambling and how does it impact your taxes?
- Best tips for keeping track of all this activity for tax time.
- How to prove your losses to an agent.
- Gambling with crypto is getting more complicated.
- Is gambling deductible?
Here are some brief snippets from this episode:
[00:13:35]
The state tax implications of online gambling can vary from state to state. States like Nevada, there's no state tax. Other states will only tax you on your net gambling winnings and losses. Some states are completely disadvantageous to gamblers.
[00:15:16]
Make sure you're qualifying to file as a professional. Track everything that you're doing and treat it as a business. IRS likes to hang their hat on that you can't possibly put in enough time to be a professional gambler if you have a day job.
[00:19:26]
Gambling with crypto has got to be ridiculously complicated because crypto itself is complicated. Expenses related to gambling can be deducted if you're a recreational gambler. But when the new Jobs Act came into play, no longer could you carry that loss forward.
[00:26:40]
Online poker for the most part definitely lives in a gray area. You still need to report it as taxable income. It's super confusing because I feel like it can be so cumbersome to remember all these different rules.
[00:28:20]
Most recreational gamblers are not reporting their gambling winnings and losses. If you are tracking all of your sessions via the session method, we can report your sessions even if it says you have $200,000 of jackpots. The goal is to make people aware of the implications of gambling tax.
Related episodes:
How to File Taxes as a Single-member LLC or Sole Proprietor
How to Take the Home Office Deduction
Are They Your Employee or a Contractor?
Resources:
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
