Question about tax experts

[Iron Warrior]

I made nearly $7k on sports betting in 2006 but I am leaving this money in my sports betting account so I can make bigger bets this year. Do I have to report this money to the IRS if I don't deposit it into my checking/savings account ? Thanks in advance.

P.S. my thread title was supposed to be "Question about gambling to tax experts"

 

[Irish_Rogue]

Yes, however since you won it in smaller amounts ( I assume), then the IRS would have a very hard time proving how you earned it. I would not inform them of it.

 

[Mr.50]

The strict answer is that gambling winnings are income at the time the have been reduced to your possession or control. Since you could liquidate the assets and transfer to your bank account at any time they are income for the year 2006.

Of course as the above post suggests many people in this situation would not report the income. But remember if it is picked up by chance, you will be liable for the tax plus interest and penalties. Also your decision will be influenced by what tax bracket you are in.

Mr.50

I made nearly $7k on sports betting in 2006 but I am leaving this money in my sports betting account so I can make bigger bets this year. Do I have to report this money to the IRS if I don't deposit it into my checking/savings account ? Thanks in advance.

P.S. my thread title was supposed to be "Question about gambling to tax experts"

 

[Iron Warrior]

The winnings aren't huge so I'll keep it to myself for now. I doubt that income would put me in another bracket and I already get taxed too much. Hopefully 2007 gets so good that I can jump into another incomer bracket and have to report it