It’s Fix the Tax Code Friday! Casinos are headed to Pennsylvania and many other states this year as revenue raisers for state governments. Winnings are taxable. If you lose, you can only deduct to the extent of your winnings and only if you itemize.
This week’s question:
Should gambling losses be deductible? Should there be limits on gambling losses? And should losses only be available to those who itemize?
If winnings are taxable, then I think losses should be deductible too. I wish the US was like Canada, where lottery & gambling wins aren’t taxable. If the winnings weren’t taxable, then I wouldn’t have a problem with losses not being a deduction. Of course, I live in Las Vegas and I’ve never claimed any of my losses as a deduction anyway, even though I’ve reported large wins (with the help of the casinos, of course) on my taxes. I forgot once, because I won a jackpot on New Year’s Day. The IRS did not forget, however.