re: taxes
The revenue agent was not my friend. He was a revenue agent in my office doing his job and explaining why the particular return he was holding in his hand had been selected for audit.
BTW -what business code do you use?
"You are not supposed to net out the gains and losses and report the net figure. People do it, but that is technically incorrect."
I would take issue that it is technically incorrect; but not now.
"In fact, a prominent and well respected pro and frequent poster on this board has stated in the past that this is what he does."
Of the three methods being discussed, again, I prefer netting on line 1; using line 1 and the COGS line next; using line 1 and reporting losses down below last.
"As to the limitation on losses, your gambling losses cannot exceed your gambling winnings, period."
Not disputing that .. would just like some reference that this applies to professionals as well as non-professionals.
" ... whether other gambling expenses can be deducted in excess of winnings, is a grey area."
Asa professional gambler, you are talking about room, board, travel, books, study aids, etc, -right? Could you tell me from what information you make your assumption or is that simply general information you have picked up along the way and feel is correct?
Thanks.