Why do you have to pay tax on casino winnings when you are likely going to put it all back into the casino and then some?

Answers.com > Wiki Answers > Categories > Entertainment & Arts > Gambling > Casinos > Why do you have to pay tax on casino winnings when you are likely going to put it all back into the casino and then some?
Answer:

Answer

It's considered a source of income and therefore taxable.

The person choosing to continue gambling with that income and perhaps losing it, is not relevent as far as the IRS is concerned.

Moreover, your getting ahead of yourself in the accounting....if you sit and the table and lose....you don't have to have any tax withheld as you won't pay any. And if you win one day, and lose the next, the amount of the loss IS able to be taken against the income from the winnings...so you don't pay tax only on winnings...but NET winnings.

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First answer by IamLostRU. Last edit by IamLostRU. Contributor trust: 1555 [recommend contributorrecommended]. Question popularity: 26 [recommend question].

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