GAMBLING WINS

[Wendy]

A client received a year end statement from MGM and had a Players Club Card. I know winnings on L21/losses on Sch A... This statement lists 12 different casinos with the wins/losses listed for each - then a grand total. Should I enter the total of each casino based on win/loss or the grand total? No W-2Gs. Thank you.

[Terry D EA]

If you are e-fiing the return, then I would enter the grand total and attach a copy of the statement to form 8453 and send it to the IRS.

[kcjenkins]

That statement is, I believe, considered a 'substitute W-2G. So I'd just enter it as one item. Keep a copy of that, but you do not need to send it in, the IRS gets their copy from the casino company. If they should have a question about it, that will be soon enough to send it to them.

[jainen]

A client received a year end statement from MGM and had a Players Club Card. I know winnings on L21/losses on Sch A... This statement lists 12 different casinos with the wins/losses listed for each - then a grand total. Should I enter the total of each casino based on win/loss or the grand total? No W-2Gs. Thank you.

A few months ago we had an interesting discussion of a recent ruling about this, at My link. Without knowing more about the document, I would guess each casino or transaction entry would be evaluated separately. I would further guess that entries with a net gain would go to Line 21, losses (not exceeding gains) to Schedule A. In my opinion, using the bottom line annual net wins does not comply with the law.