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As we noticed in Parts 3 and 4 of this collection, a gambler, whether a full-time professional or an occasional weekend player, could deduct the quantity of shedding bets from winnings to reduce taxable earnings (but not to create a loss that can be utilized in opposition to non-gambling revenue). But how do you present how a lot you’ve got lost? This submit, the final in my collection on taxation of gambling, addresses the question of how a¬†horseplayer¬†ought to document her wins and losses, and what the IRS and the Tax Court are prone to do when you have lower than excellent documentation.

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