![]() The Forms W- 2G from all of the casinos included only his wins of over $1,200 or more.īesides recording prizes of $1,200 or more on Forms W- 2G, two of the casinos tracked his wins and losses when he signed into slot machines using casino- issued rewards cards (sometimes called players cards). He also won $350,241 gambling at four casinos in Maryland and Delaware, which was reported to him (and the IRS) on Forms W- 2G from the casinos. In 2014, it also brought him into conflict with the IRS.ĭuring 2014, Coleman had nongambling income of $76,784 and a personal injury settlement of $150,000. Coleman testified in Tax Court that over the years his love of playing the slot machines had adversely affected his financial circumstances and his family life. His preferred form of action is the slot machine, which, unfortunately, generally offers among the worst odds of any type of game in a casino. John Coleman is a self- acknowledged compulsive gambler. ![]() Despite inexact substantiation of his losses, the Tax Court held that a taxpayer had lost more than he had won gambling during 2014, and he could take a gambling loss deduction equal to the amount of winnings reported to the IRS on Forms W- 2G, Certain Gambling Winnings, from casinos for the year. ![]()
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