Gambling losses: All bets are off — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Q. In recent issues, you said gambling losses are miscellaneous deductions subject to the 2 percent limit of adjusted gross income. I don’t believe that’s correct. N.K., via e-mail
A. You’re right, and we were wrong. We apologize. You can deduct your annual gambling losses up to the amount of your winnings as a miscellaneous expense on Form 1040 Schedule A. However, unlike most other deductible miscellaneous expenses, there is no 2 percent-of-AGI floor for gambling losses. The losses are deducted without applying this limit.
The legal and financial risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Would your books survive an IRS spot-check?...Click here to find out more.