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Author Topic: USBC and 1099s  (Read 4132 times)

htotheizzo3561

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USBC and 1099s
« on: February 01, 2019, 04:14:47 PM »
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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matt1286

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Re: USBC and 1099s
« Reply #1 on: February 01, 2019, 04:35:54 PM »
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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milorafferty

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Re: USBC and 1099s
« Reply #2 on: February 01, 2019, 06:03:05 PM »
Quote from: matt1286 on February 01, 2019, 04:35:54 PM
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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avabob

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Re: USBC and 1099s
« Reply #3 on: February 01, 2019, 08:52:04 PM »
Not just itemize.   You have to file a schedule C for business income and deductions
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milorafferty

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Re: USBC and 1099s
« Reply #4 on: February 01, 2019, 09:12:07 PM »
Quote from: avabob on February 01, 2019, 08:52:04 PM
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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avabob

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Re: USBC and 1099s
« Reply #5 on: February 03, 2019, 07:03:25 PM »


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. 
« Last Edit: February 03, 2019, 07:09:57 PM by avabob »
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SVstar34

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Re: USBC and 1099s
« Reply #6 on: February 03, 2019, 07:28:53 PM »
Quote from: avabob on February 03, 2019, 07:03:25 PM


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
« Last Edit: February 03, 2019, 07:59:45 PM by SVstar34 »
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milorafferty

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Re: USBC and 1099s
« Reply #7 on: February 03, 2019, 07:57:30 PM »
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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avabob

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Re: USBC and 1099s
« Reply #8 on: February 03, 2019, 08:18:34 PM »
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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SVstar34

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Re: USBC and 1099s
« Reply #9 on: February 03, 2019, 08:29:57 PM »
Quote from: avabob on February 03, 2019, 08:18:34 PM
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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milorafferty

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Re: USBC and 1099s
« Reply #10 on: February 03, 2019, 08:32:31 PM »
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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milorafferty

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Re: USBC and 1099s
« Reply #11 on: February 03, 2019, 08:42:40 PM »
Quote from: SVstar34 on February 03, 2019, 08:29:57 PM
Quote from: avabob on February 03, 2019, 08:18:34 PM
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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SVstar34

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Re: USBC and 1099s
« Reply #12 on: February 03, 2019, 08:54:56 PM »
Quote from: milorafferty on February 03, 2019, 08:42:40 PM

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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milorafferty

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Re: USBC and 1099s
« Reply #13 on: February 03, 2019, 09:01:05 PM »
The enrolled agent for our company says different. 
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BowlingForDonuts

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Re: USBC and 1099s
« Reply #14 on: February 03, 2019, 11:18:13 PM »
Wow you know things are too quiet at BR when the thread generating the most heat is about taxes.
« Last Edit: February 03, 2019, 11:25:11 PM by BowlingForDonuts »
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