gambling losses net against day of?

[WITAXLADY]

I take off the gambling losses up to the amount won on Sch A -

I had a prior return - line 21 - "same day sessions line 21"- and they took off the losses incurred from the day of the win??

 

fine for 1 day but 20 w2-g's? 20 days!

Has anyone heard of this?

 

Never mind - I just looked it up -Yes from the same day!!

thx D

[mcb39]

I have always taken the entire amount on the Sch A.  This year though we have a client who is angry with us because he went to Nev and won a small jackpot.  He came in here all gung ho to deduct his losses.  However, there is no way in the world that they can itemize.  Wife is furious that they are getting a penalty.  Days like this I really want to quit.  My husband wants to call and fire them.

[TexTaxToo]

Some courts have ruled that counting every individual wager that wins during a gambling session is unreasonable, as they are not really an accession to welath.  The IRS has proposed, first through Chief Counsel Advice Memorandum 2008-011 Reporting of Wagering Gains and Losses (https://www.irs.gov/pub/irs-utl/am2008011.pdf) and later in Notice 2015-21, a safe harbor for netting certain winnings and losses on a "session" (or daily) basis. 

This is likely what the previous preparer is relying on. However, the proposals were never finalized or put into effect (and applied only to slot machines), so you use them at your own risk.  I'm curious if anyone here is relying on them?

[WITAXLADY]

I inherited a return from a CPA with it on..

D