Will this Statement alone be enough to Prove my Gambling Loses for Tax Deduction

[Davidvictorson]

It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

[Oshosondy]

It is true that gambling losses can be deducted from an individual's taxes.

According to what I have heard before in countries that collect tax from gamblers, the authorities do not collected tax if you have loss as the net profit. If you your net profit is positive, you will be taxed.

If needed, I can request for my yearly statement, which shows how much bet I have placed in that year

On some gambling sites, you can check for your betting history, the total profit and loss can be seen, but this may differ from one betting site to another.

If needed, I can request for my yearly statement, which shows how much bet I have placed in that year

What that matter is your total profit that month or year.

[EarnOnVictor]

From my experience with tax laws, no country will tax you for gambling losses, they can only do that if you have an aggregate gambling gain over the tax period.

And the issue is that it's not easy for countries to tax their citizens the way you have explained, though it's viable for you to prove you gained or lost. However, some would still evade tax through that as there are many schemes through which they do this, especially when they could gamble online, and with crypto.

This is why a country that wants to tax its citizens always has arrangements with the gambling company, they might tax your ticket directly or have the record they will duplicate for the government in order to know how to tax you. But one must be living in their country for the latter to be effective.

Either way, it depends on the country, but you shouldn't be taxed if you are not gaining.

[molsewid]

It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

I don't know about this and it will be good if this is still applicable here in our country. Since you are playing online I am sure that you have your gambling history, better if you can convert it in pdf so that it would be presentable since I don't but last time I asked my accountant to bookkeel for me she asked if I can compile it and make everything in pdf. Hmm since it is online, make sure that it is acceptable by your tax bureau as well.

[davis196]

Which country are you talking about? I don't know about such gambling tax deduction in the US tax system.
The tax system in my country has imposed a 15% income tax on all registered gambling businesses(in addition to the 10% corporate profit tax). There isn't any tax deduction for gambling loss in my country, AFAIK. Having such tax deduction seems immoral and ridiculous. The gamblers would be incentivized to gamble more, because their loss will be deducted from their taxes. I don't know about any country in the world, whose tax system stimulates the gamblers to gamble more.

[danherbias07]

Which country are you talking about? I don't know about such gambling tax deduction in the US tax system.
The tax system in my country has imposed a 15% income tax on all registered gambling businesses(in addition to the 10% corporate profit tax). There isn't any tax deduction for gambling loss in my country, AFAIK. Having such tax deduction seems immoral and ridiculous. The gamblers would be incentivized to gamble more, because their loss will be deducted from their taxes. I don't know about any country in the world, whose tax system stimulates the gamblers to gamble more.

I want to ask the same because I have never heard of this in my entire life. Just now.
Maybe countries who really look deeper at their countrymen's taxes will do this but not in our country. I have a feeling though that maybe the rich people are being surveilled by this kind of activity so that there will be proof if ever they want to add it to their tax exemption records.
I've heard about institutions like charities that will help cut some of the individual tax but in terms of gambling, this is new to me. I thought that when you gamble you just risk your money, you lose, and voila no one cares.

[CarnagexD]

Generally, yes, you'll be able to  deduct your gambling losses but only to the extent of your winnings and you have to file your taxable income in order to do it. Anyone who files their income tax return faithfully has the right for this deduction.

Either way, it depends on the country, but you shouldn't be taxed if you are not gaining.

I agree. Every territory has their own tax rates when it comes to winnings. In our country, winnings are fully taxable and subject to 20% final tax in excess of 10,000. But for other countries, if you really do want to get the privilege of claiming itemized deductions in your taxes, better to report your income rightfully as well and keep your winnings history with you. Also consider that there are some policies where foreigners are not allowed to deduct their losses in their taxable income.

Which country are you talking about? I don't know about such gambling tax deduction in the US tax system.
The tax system in my country has imposed a 15% income tax on all registered gambling businesses(in addition to the 10% corporate profit tax). There isn't any tax deduction for gambling loss in my country, AFAIK. Having such tax deduction seems immoral and ridiculous. The gamblers would be incentivized to gamble more, because their loss will be deducted from their taxes. I don't know about any country in the world, whose tax system stimulates the gamblers to gamble more.

I want to ask the same because I have never heard of this in my entire life. Just now.
Maybe countries who really look deeper at their countrymen's taxes will do this but not in our country. I have a feeling though that maybe the rich people are being surveilled by this kind of activity so that there will be proof if ever they want to add it to their tax exemption records.
I've heard about institutions like charities that will help cut some of the individual tax but in terms of gambling, this is new to me. I thought that when you gamble you just risk your money, you lose, and voila no one cares.

Rich people, especially businessmen, take advantage of these kinds of tax laws. In order to reduce the tax that they have to pay, most of the time they report part of their income and claim any deductions that they have the right to. They usually hire people who can legally help them with their taxes and do tax avoidance.

[pawanjain]

I don't think there are taxes on net loss from gambling/trading. Even in my country they have applied taxes on income from crypto.
So this means if there is no income then there are no taxes. So yes, a solid track record of bet history should be enough evidence to disclose the losses.
Besides that, if there is no profit then how would they tax you without knowing the amount of profits you have made.

[Plaguedeath]

Gambling losses can deduct taxation but it's just for gross profit you're make through gamble, not the net profit.

Let's say your beginning bankroll is $500, you're keep gambling and now your bankroll become $750, which mean you're make $250 and this is the net profit you make through gamble. You can actually just include this $250 in your transaction report, but you're not allowed to include your gambling losses.

You can include the losses but you need to count it yourself based on your gambling history. Your gross profit is $4,000 and your gambling losses is $3,750.

At the end it's same your profit is $250.

[ethereumhunter]

Maybe that's enough for the tax office because you can attach the data when you pay taxes and get a deduction. But for more details, you can ask the local tax office for an explanation. Besides that, we are in different places, so there must be differences in the terms and conditions for paying taxes.

But other countries only need to include payroll and other assets in their tax reports. For the gambling report, I think it will depend on each tax office.

[Solosanz]

Well most users in this forum aren't tax experts, so we will not know which user is right and which user is wrong here, because some users only use their assumption and guess. Each country might be different to calculate the gambling tax, maybe there's a user who live in country where gambling is banned, obviously they will not report their gambling profit lol.

It's better to ask or consult with the tax expert in your countries, just be honest with them

[Yogee]

[.......] In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

I personally think it's enough but you have to ask fellow gamblers from your country.

You already mentioned brick and mortar but is Online Gambling a legal activity in your country? You may not be able to claim at all if it's declared illegal.

If it's legal then the next thing you also need to know is do they recognize online casinos that are not licensed or registered in your country.

[Yatsan]

Never heard of such thing which seems like an insurance. Gambling is gambling, no one is liable for your losses but yourself alone. Taxes on the other hand is more likely tobe done on your winnings and also if your gambling platform is registered under government agencies. But if it is in cryptocurrency industry, this would be impossible. It is often a win or lose situation for gamblers.

I don't think there are taxes on net loss from gambling/trading. Even in my country they have applied taxes on income from crypto.
So this means if there is no income then there are no taxes. So yes, a solid track record of bet history should be enough evidence to disclose the losses.
Besides that, if there is no profit then how would they tax you without knowing the amount of profits you have made.

This sounds more of an insurance than taxation alone. Why would they tax you if you already lost? that would be twice your loss if that's the case. Even with other fields such as businesses, taxes are only made with gains unless it is a registered establishment, which is what I am pointing above.

[cabron]

Such a cruel government you must have that you get to pay tax whenever you lose. But then I also thought maybe this law could be a good penalty for the people in countries where gambling is illegal.

If you go bankrupt due to your gambling then there is no way you can pay your tax. Just get inside the cell. I wonder if it had happened to someone before.

[dimonstration]

AFAIK, official annual statement is sufficient for the IRS to support your tax since that is what’s being use on exchange when user is paying taxes for their trading. What I don’t know if losses is taxable too since each state or country varies law in regards taxation. It sounds unfair to tax loss but it’s too possible because some country charge tax on activity that can harm someone life to help the people avoid it and use tax to scare people from using it. In my country, we have sin tax law which gives extra tax on goods or luxury that can harm society.

[jrrsparkles]

It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

Gambling tax policy varies depending on where you are living, in some countries you will only get the winning rewards after the deduction of taxes and for loss you need to bear it, while others have different so consulting the financial advisor will be the preferable choice. But since you have the statement and your country allows tax deduction based on your net profits then the statement from the casino itself enough.

[coolcoinz]

In the EU we have similar problems as tax offices accept your statements and you accept that if proven wrong you can be fined. It's very simple. The tax office will not ask 90% of taxpayers to further prove their statement. It happens usually when the discrepancies are very big, or you're operating on large sums of money. From time to time they'll ask you for something at random, just to show you they care but most of the time they won't.

None of my friends and family were ever asked to clarify their statements, so if you aren't claiming a $100k loss, they probably won't even ask for details.

[Fortify]

It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

You should really be asking a professional accountant or tax expert, rather than relying on random opinions from an internet forum. Besides that, nobody here can give you a proper answer based on this information alone, because it will heavily depend on what country/state/region that you are in. While it would seem like adequate proof, different jurisdictions can have different standards and may not accept receipts from other places if those gambling companies are not "friendly" towards them. If you have been successful at gambling, you should re-invest some of that money into proper financial advice, otherwise you could end up in a lot of trouble and potentially pay fines far outweighing your gains.

[Zlantann]

It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

It's really amazing that the government sees tax like business. Infact they tax law mentioned a proffesion called proffesional gambling. It's true gamblers can deduct their losses from their tax business expenses if their records are comprehensive and up-to-date. I am not aware of these laws because I have never really considered this privilege.

But this law might not be universal because I had to go through many tax websites and documents in my country and I didn't find such provision. I think it is applicable mostly in developed nations. But I have decided to start keeping a comprehensive record of all my gambling activities because such laws might be applied in future.

[Casdinyard]

First time I've ever heard of countries counting your gambling losses off of tax deduction honestly, coz as far as I know they don't touch those things, except when maybe you've earned a net profit in your YTD statement which in that case you'll be bombarded by emails and letters from your tax collector to include those wins and declare them in your taxes.

It's really amazing that the government sees tax like business. Infact they tax law mentioned a proffesion called proffesional gambling. It's true gamblers can deduct their losses from their tax business expenses if their records are comprehensive and up-to-date. I am not aware of these laws because I have never really considered this privilege.

But this law might not be universal because I had to go through many tax websites and documents in my country and I didn't find such provision. I think it is applicable mostly in developed nations. But I have decided to start keeping a comprehensive record of all my gambling activities because such laws might be applied in future.

Exactly. First time I've ever heard of such a ridiculous law. I mean to be fair most casinos be it privatized or government-sanctioned still puts money to the community chest by means of taxes, but never did it strike me that a country so greedy/so lenient that they'd go so far as to charge you taxes for gambling lmao.