Taxation of Gambling This installment of our Tax and Vice blog series will discuss the tax treatment of cancelled debts. I will use a recent California Appeals case (Tak Chun Gaming Promotion v. Long) to illustrate the potential tax consequences when a gambling debt or any debt gets cancelled or there is a so called
Gambling Losses California
Are gambling losses deductible?
Are gambling losses deductible? Any money won gambling is considered taxable by the IRS. Gambling winnings include cash prizes and the fair market value of any item won from lotteries, casinos, racetracks, game shows, etc. If you’ve won big, you may be subject to a rather large tax penalty on those winnings. However, gambling losses