Quote Originally Posted by coaster7777
your paper trail is your gambling purchases/receipts on paper, be they lotto, horse bets, etc. if you act to deduct your losses, keep all receipts of what you buy and keep a registry of earnings, losses and donations. if you get into the illegal side of gambling without paper, that's on the individual. if you make over $5000, you can also deduct some gas, auto maintenance and depreciation as it probably takes some of this to get you to buy your gamble purchases. i would look into seeing if some travel (to casinos) expenses could be deducted.
My understanding is that if you derive your income from gambling, thus making gambling your job/business, you can deduct the costs of travel and lodging as part of the business of gambling provided you keep proper records, i.e. a mileage log for ALL travel, business and personal.