Earmark Podcast | Earn Free Accounting CPE

Beat the House: Tax Strategies to Offset Gambling Winnings

Aug 18, 2023

From offsetting winnings with losses to tracking gambling sessions, this podcast explores tax strategies for beating the house. The speaker, a CPA specializing in gambling taxation, discusses what counts as gambling income and how to properly track activity. They also address the importance of record-keeping, IRS publications on gambling, tax implications for recreational and professional gamblers, understanding tax forms for gambling winnings, and the intricacies of the gambling niche.

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Introduction

00:00 • 2min

Tax Strategies for Gambling Winnings

01:37 • 13min

The Importance of Record-Keeping in Sports Betting and Crypto

14:14 • 11min

Tax Treatment of Gambling Winnings for Recreational and Professional Gamblers

24:56 • 5min

Tax Implications for Gamblers

29:29 • 10min

Understanding Tax Forms and Implications for Gambling Winnings

39:22 • 10min

Exploring the Intricacies of the Gambling Niche

49:22 • 5min

From tracking gambling sessions to offsetting winnings with losses, professional gamblers and enthusiasts alike need to know how to beat the house when it comes to taxes. Join Certified Public Accountant Zak Zimbile, owner of a remote CPA firm specializing in gambling taxation, as he breaks down federal and state requirements for reporting gambling income. Zak leverages his decade-plus of experience advising recreational and professional gamblers across the country to explain what counts as gambling income, how to properly track activity, when winnings must be reported, and how losses can be used to lower your tax bill. With insights ranging from tax forms to watch out for to foreign reporting requirements, this episode helps gamblers and tax professionals alike formulate strategies to minimize the house's take.

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South Carolina Association of CPAs (SCACPA) - https://earmarkcpe.promo/scacpa

Chapters

(00:00) - Preview: How professional gamblers stay under the radar
(00:57) - Earn Free CPE
(01:18) - Welcome Zak to the show
(03:31) - How did you get into this niche?
(05:05) - What is considered gambling income?
(06:36) - How do people keep track of all of their winnings and losings?
(08:19) - How do you recommend your clients keep track of all of this?
(11:03) - Why is it so important to track this data
(15:10) - Do you direct your clients to any specific sites that keep good records of bets?
(16:35) - Where does the IRS publish this information on gambling and sessions
(19:08) - Why can a W-2G and tracking by session be beneficial?
(22:24) - Do these tax laws apply the same for professional vs recreational gamblers? And lets talk a little more about how pros are defined
(25:15) - How does the IRS treat gambling winnings on a tax return?
(30:34) - Does the IRS push back on the professional vs amateur classification
(31:59) - How do taxes vary state to state on gambling wins and loses
(35:45) - Do you see gamblers relocating specifically for tax purposes?
(37:51) - Has video game gambling taken off?
(39:20) - Are there any other tax forms I may receive or deal with related to gambling?
(44:24) - What do I need to know about gambling in a foreign country?
(49:20) - What is your favorite and the hardest part about this niche?
(53:03) - Wrap up and where to reach Zak

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Connect with Our Guest, Zak Zimbile

Twitter: https://twitter.com/ZakTheCPA
LinkedIn: https://www.linkedin.com/in/zachary-zimbile-cpa-5a4b2224/

Learn more about Zachary Zimbile, CPA

Website: https://www.zakthecpa.com/

Connect with Blake Oliver, CPA

LinkedIn: https://www.linkedin.com/in/blaketoliver
Twitter: https://twitter.com/blaketoliver/