Casino winnings

[Pacun]

Client went to Casino and won $10K. His net winnings on that trip were 9K. He files jointly with he went to casinos 3 times. The time he won and two other times that he lost $500 each. His net winning would be 8K for the year. His wife made 10 trips to the casino and she lost 4K on each one. Can they wipe out the gain since they are filing jointly if they both have accurate records and then fille for divorce since wife lost all the money and never won? I understand that sch A is involved but I want to know if they can deduct the wife's losses on the joint return.

You are right, this is not a real life scenario, but please respond.

[Jack from Ohio]

No. Losses are only deductible up to the amount of your winnings.

Winnings = $0 then deductible loss = $0

[mcb39]

On Schedule A, Line 28; provided they are otherwise able to itemize, they can deduct up to the same amount as they claim on Line 21 of the 1040 for Gambling Winnings; which I assume would be $10,000. Yes, on a joint return they can combine winnings and losses. Am I correct that he probably got a 1099G from the Casino for $10,000? We see a lot of these in WI.

[Jack from Ohio]

On Schedule A, Line 28; provided they are otherwise able to itemize, they can deduct up to the same amount as they claim on Line 21 of the 1040 for Gambling Winnings; which I assume would be $10,000. Yes, on a joint return they can combine winnings and losses. Am I correct that he probably got a 1099G from the Casino for $10,000? We see a lot of these in WI.

I would be careful due to the recent rulings regarding "each gambling trip."

[Pacun]

The way I understand "each gambling trip" is that I would report $10,000 winning on line 21 and $1K loss neted and the rest of the losses on Sche A up to 9K.