__________ Examples of Gaming Taxation
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 		   Copyright© 2006 Colin M. Cody, CPA and ProfessionalGamblerStatus.com, LLC, All Rights Reserved.
 
Examples based on 2005 tax tables:

CT resident, single, wages $20,000, itemized deductions (mortgage interest & state taxes) $12,000. 
IRS tax: $483   CT tax: zero

Same taxpayer but he wins $500,000 during the year and loses $505,000 as a casual gambler.
IRS tax: $2,264   CT tax: $25,800  = tax penalty $27,581

Same taxpayer but he wins $500,000 during the year and loses $505,000 as a professional gambler and has $5,000 of transportation expense and office expense.
IRS tax: $zero   CT tax: zero = tax savings $28,064
* may need a separate entity to trade through to gain professional trader status.



CT resident, married, wages $120,000, itemized deductions (mortgage interest & state taxes) $32,000. 
IRS tax: $17,875   CT tax: $5,695

Same taxpayer but he wins $500,000 during the year and loses $505,000 as a casual gambler.
IRS tax: $20,190   CT tax: $30,800  = tax penalty $27,420

Same taxpayer but he wins $500,000 during the year and loses $505,000 as a professional gambler and has $5,000 of transportation expense and office expense.
IRS tax: $16,575   CT tax: $5,410 = tax savings $29,005
* may need a separate entity to trade through to gain professional trader status.

Same taxpayer but he wins $500,000 during the year and loses $400,000 as a casual gambler.
IRS tax: $50,505   CT tax: $30,800  = tax penalty $27,420

Same taxpayer but he wins $500,000 during the year and loses $400,000 as a professional gambler and has $5,000 of transportation expense and office expense.
IRS tax: $50,854   CT tax: $10,486 = tax savings $19,965
* may need a separate entity to trade through to gain professional trader status.
 




































 
   
   

 

 

 


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Copyright© 2006 Colin M. Cody, CPA and ProfessionalGamblerStatus.com, LLC, All Rights Reserved