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Thread: Help - taxes and buying a house

  1. #1
    sessik86
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    Default Help - taxes and buying a house

    I've won some money from poker. I'm going to claim it on my taxes. Let's say for example I won $30,000 and my losses are $25,000. I believe then my taxable income would be $5,000 from my profits. When I go to buy a house, will they look at the $30,000 of gross income or have worries because my profit was only $5,000? (This upcoming year, I'm going to start dancing again and pay taxes so that way I have two years of income I can show.)

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    Default Re: Help - taxes and buying a house

    You may want to check with an accountant because I don't think you can claim losses from gambling type activities. My friend made a living from betting on the horses and as I recall (haven't seen him in years) losses were not deductible.
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    Default Re: Help - taxes and buying a house

    Quote Originally Posted by glambman View Post
    You may want to check with an accountant because I don't think you can claim losses from gambling type activities. My friend made a living from betting on the horses and as I recall (haven't seen him in years) losses were not deductible.
    Gambling losses are deductible to the extent of gambling winnings. See IRS Pub. 525.

    As always, this is not specific tax advice.

    HTH
    Z

    Disclosure under IRS Circular 230: To insure compliance with recently released Internal Revenue Rules, this communication was not written or intended to be relied on to avoid federal tax related penalties or for promoting, marketing or recommending to any party any tax related matters addressed herein.

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    Default Re: Help - taxes and buying a house

    Quote Originally Posted by sessik86 View Post
    I've won some money from poker. I'm going to claim it on my taxes. Let's say for example I won $30,000 and my losses are $25,000. I believe then my taxable income would be $5,000 from my profits.
    You are correct.

    When I go to buy a house, will they look at the $30,000 of gross income or have worries because my profit was only $5,000? (This upcoming year, I'm going to start dancing again and pay taxes so that way I have two years of income I can show.)
    They will only look at the $5,000. However, since gambling income is speculative at best, no banker is going to make a mortgage loan based on gambling profits.

    Sorry,
    Z

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    Default Re: Help - taxes and buying a house

    Quote Originally Posted by Zofia View Post
    Gambling losses are deductible to the extent of gambling winnings. See IRS Pub. 525.

    As always, this is not specific tax advice.

    HTH
    Z

    Disclosure under IRS Circular 230: To insure compliance with recently released Internal Revenue Rules, this communication was not written or intended to be relied on to avoid federal tax related penalties or for promoting, marketing or recommending to any party any tax related matters addressed herein.

    http://www.irs.gov/publications/p525...blink100098473

    Gambling winnings. You must include your gambling winnings in your income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings.

    Thanks, not a gambler, never came up (for me).
    Quote Originally Posted by The Snark View Post
    But then I suppose the sort of people who write this kind of crap generally don't allow their opinions to be tainted by things like "facts" and "reality".
    Distortion becomes somehow pure in its wildness
    The note that began all can also destroy

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    Default Re: Help - taxes and buying a house

    Because you are not a professional gambler....

    From your example:
    --Gambling Winnings of $30k -- Form 1040, Line 21 Other Income
    --Gambling Losses of $25k -- Schedule A, Line 28 Other Misc Deductions
    *****If this is your first time itemizing deductions, be certain to take advantage of the other deductions listed on Schedule A (state taxes paid, auto license, charitable contributions, etc)
    *****Gambling Losses cannot exceed Gambling Winnings


    Mortgage loan processors generally look at the Adjusted Gross Income first, which includes the gross value of $30k. And because it will be old(ish) info by the time you apply, you may not lose many brownie points because of the type of income.

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