| | |  | Last Updated: Tuesday, June 19, 2007 |  | | | The Importance of Keeping a Gambling Log
- Thursday, 13 Jul 2006
We all love gambling and we love it even more when we win. What we DON’T like is sharing our winnings with the Tax Man. However, winning at gambling comes with its price and whenever we win anything over $1,200, we are obliged to fill in a W-2G form and list our winnings when we file our income tax forms. Did you know, however, that you are allowed to deduct gambling losses (up to amount of your initial winnings) if you have documented these losses? This is where keeping a gambling log comes in.
A gambling log will essentially list all the losses you have made at gambling prior to your big win. If, for example, you win $10,000 playing slots, but you’ve lost just as much or more in prior gambling sessions, you could deduct these losses from your tax claims. To keep a gambling log, you need to make sure that you have recorded the type of game you played, the date and place, winnings and losses for all games played and any other essential evidence of your gambling activities.
Another reason to keep a gambling log is as a personal record for you. In this way, you can look back on your gambling sessions and note where you could improve your strategy. It is also a good way to keep track of expenses.
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