Line 21 ""Other Income" on 1040 – gambling winnings

  • Creator
    Topic
  • September 3, 2016 at 7:05 pm #829285
    startupcfo
    Participant

    In Sim #1, the taxpayer has 450 in gambling winnings and $100 in gambling losses. I put down the net value of $350 as Other Income. Am I supposed to net it out? If not, where do I list the 100 dollar gambling loss to counterbalance the income before AGI is decided?

    AUD - 93
    BEC - 87
    FAR - 77
    REG - 77
    ------------
    Corporate finance leader

    BEC - 87 | 02/28
    REG - 70 | 06/10, REMATCH | 08/30
    AUD - XX | 09/10
    FAR - XX | 12/10

Viewing 6 replies - 1 through 6 (of 6 total)
  • Author
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  • September 3, 2016 at 8:24 pm #829306
    SkiBum1990
    Participant

    Netting gambling losses to the extent of gambling winnings can ONLY be done if you elect the ITEMIZED DEDUCTION. If claiming a standard deduction, gambling losses can't be netted. — what situation was the tax payer in that SIM?

    B - 79
    A - 68, 70 (UGH)
    R - Oct
    F - Nov

    "The mind can only absorb as much as the seat can take"

    "The mind can only absorb as much as the seat can take"

    B - 79
    A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
    R - Oct
    F - Nov (HA! 1 month to study working full-time; love NTS rules)

    September 3, 2016 at 8:26 pm #829309
    Paydirt123
    Participant

    do not net. enter $100 gambling loss as other miscellaneous deduction not subject to 2% floor. The $450 gambling winnings is reported in its entirety. (Also not gambling losses are only reported to extent gambling winnings)

    AUD - 84
    BEC - 80
    FAR - 80
    REG - 85
    Took the long way, but I got there
    September 3, 2016 at 8:27 pm #829312
    Paydirt123
    Participant

    *note

    AUD - 84
    BEC - 80
    FAR - 80
    REG - 85
    Took the long way, but I got there
    September 3, 2016 at 8:40 pm #829324
    SkiBum1990
    Participant

    Correct^^ to clarify my post, the net effect* will only happen if you itemize.. The loss will be reported regardless on the misc line

    B - 79
    A - 68, 70 (UGH)
    R - Oct
    F - Nov

    "The mind can only absorb as much as the seat can take"

    "The mind can only absorb as much as the seat can take"

    B - 79
    A - 68, __ (got bumped from Aug 4 release to Aug 23-THANKS AICPA)
    R - Oct
    F - Nov (HA! 1 month to study working full-time; love NTS rules)

    September 3, 2016 at 8:52 pm #829330
    Paydirt123
    Participant

    you're welcome, lol

    AUD - 84
    BEC - 80
    FAR - 80
    REG - 85
    Took the long way, but I got there
    September 3, 2016 at 8:54 pm #829333
    Paydirt123
    Participant

    lol, disregard skiburn, I hadn't read your post, was responding to original question

    AUD - 84
    BEC - 80
    FAR - 80
    REG - 85
    Took the long way, but I got there
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