BallReviews
General Category => Miscellaneous => Topic started by: htotheizzo3561 on February 01, 2019, 04:14:47 PM
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It was my first year in several years and did ok in brackets, if you won $600+ in brackets do you get a 1099 from the USBC? or just if you win $600+ in the actual tournament?
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Unless something has recently changed it's $600 total combined between brackets, sidepots and tournament. Always thought it was strange to see someone put in $1000 in brackets, win back $600 of that (so basically lose $400) and get a 1099 for the $600 lol
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Unless something has recently changed it's $600 total combined between brackets, sidepots and tournament. Always thought it was strange to see someone put in $1000 in brackets, win back $600 of that (so basically lose $400) and get a 1099 for the $600 lol
If you keep your bracket entry receipt you only have to pay tax on the amount won over what you spent on brackets. Of course, you have to itemize to do that.
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Not just itemize. You have to file a schedule C for business income and deductions
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Not just itemize. You have to file a schedule C for business income and deductions
Only if you are a professional. Otherwise you just use schedule A
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You dont have to be a professional to use schedule C, you just face limitations on the ability to take losses in excess of revenue.
I dont think Schedule A is a correct option.
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You dont have to be a professional to use schedule C, you just face limitations on the ability to take losses in excess of revenue.
I dont think Schedule A is a correct option.
As someone who is a tax accountant and working towards my CPA license...
The 1099 income is reported as other income on your Form 1040 unless you're considered a "professional" which opens use of Schedule C. The professional status matters as Sch C is for business use
The expenses are for Sch A Misc Deductions but limited to the income amount. Unfortunately with the new TCJA for 2018 there are no Misc Deductions on Sch A now. So no deduction for the expense now
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I just did my taxes for 2018. Yes, you can offset gambling expenses against reported winnings. And you do it with schedule A when you itemize.
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What you "can" do, and what is correct under IRS rules are not necessarily the same thing. Entry fees are not taxes, not interest, not charitable. In addition for many an itemized deduction on Sch A is of no benefit if the standard deduction exceeds itemized deductions in total.
Again, the only correct place to take a deduction for entry fees, or any other expenses associated with bowling is on Schedule C. You dont need to be a professional to file Sch C. There are rules and requirements under "Hobby Loss" limitations. You don't want to consistently take net losses on Sch C.
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What you "can" do, and what is correct under IRS rules are not necessarily the same thing. Entry fees are not taxes, not interest, not charitable. In addition for many an itemized deduction on Sch A is of no benefit if the standard deduction exceeds itemized deductions in total.
Again, the only correct place to take a deduction for entry fees, or any other expenses associated with bowling is on Schedule C. You dont need to be a professional to file Sch C. There are rules and requirements under "Hobby Loss" limitations. You don't want to consistently take net losses on Sch C.
That's the whole issue with the situation. There is a lot of gray area.
Bowling does not fit in the gambling category according to federal law as it's considered skill based and betting on your own skill.
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Okay "tax" experts. I just looked at my tax forms. You take gambling losses up to the amount won on line 16 of schedule A when you itemize. You need to have good documentation of course but it's available. In fact TCJA increases what you can deduct up to the limit of winnings. If you travel exclusively for the purpose of the tournament you can deduct those expenses too.
If you feel the need to argue this point further, refer to IRS publication 529.
It's not tax dodge, gimmick or trick. If you report correctly and keep good records an audit is not a problem.
And yes, it's schedule A for the losses and expenses to offset winnings reported on schedule 1.
If you need further clarification, may I suggest Google if you don't have access to a good tax professional.
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What you "can" do, and what is correct under IRS rules are not necessarily the same thing. Entry fees are not taxes, not interest, not charitable. In addition for many an itemized deduction on Sch A is of no benefit if the standard deduction exceeds itemized deductions in total.
Again, the only correct place to take a deduction for entry fees, or any other expenses associated with bowling is on Schedule C. You dont need to be a professional to file Sch C. There are rules and requirements under "Hobby Loss" limitations. You don't want to consistently take net losses on Sch C.
That's the whole issue with the situation. There is a lot of gray area.
Bowling does not fit in the gambling category according to federal law as it's considered skill based and betting on your own skill.
Brackets are gambling. It's random chance on the matchup which by definition is gambling.
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Brackets are gambling. It's random chance on the matchup which by definition is gambling.
But there is the factor of skill involved.
There was the argument on Daily Fantasy sports betting being skill based vs gambling. It was ruled to be gambling because you are betting 100% on the outcome of something you have no control over.
Compare this to bowling and brackets, your skill factors in the outcome so you do have some control.
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The enrolled agent for our company says different.
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Wow you know things are too quiet at BR when the thread generating the most heat is about taxes.
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Wow you know things are too quiet at BR when the thread generating the most heat is about taxes.
That is only because we don't have a Misc Non-Bowling forum any longer. :)
Ducks and covers.
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note to self, never be good enough to win $600 in a season
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The enrolled agent for our company says different.
We'll just have to agree to disagree.
Until an IRS ruling occurs there is a lot of gray area.
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Brackets are gambling. It's random chance on the matchup which by definition is gambling.
But there is the factor of skill involved.
There was the argument on Daily Fantasy sports betting being skill based vs gambling. It was ruled to be gambling because you are betting 100% on the outcome of something you have no control over.
Compare this to bowling and brackets, your skill factors in the outcome so you do have some control.
how do they view card gambling? the best comparison to brackets would be texas holdem players. gambling but its your skill vs somebody elses, and the cards would equal the lanes
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I agree with avabob. I report the income and related expenses on Schedule C. If you want to be conservative, do not deduct more in expenses than the total income on form 1099.
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I have been filing on schedule C for 25 years. I an not a pro bowler ( actually a tax accountant ), but have received 1099s on almost every year. If you keep records of all expenses and demonstrate a reasonable profit motive you can even have an occasional loss year. If you rarely get a 1099 this is probably more trouble than it is worth, but the schedule C is the only sure to get the benefit of your entry fee as an offset.
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As a bowler and CPA, I get this question a lot this time of year from friends. Schedule C is the way to go. Document all expenses.
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Don't forget to keep track of your leagues and other tournaments, practice, travel (including mileage) and equipment. If you don't get your expenses up to your 1099 you either aren't trying hard enough or you had a really good year. Not very many people make a profit when you figure everything that goes into it.
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Good point on expenses.