Thread: For US citizens concerned with foreign lotto laws.

An alternative would be to play in US lottories, especially the games with better odds of winning, and issue percentages of winnings to HALotto as donations which should then be tax deductible.

Originally Posted by coaster7777

An alternative would be to play in US lottories, especially the games with better odds of winning, and issue percentages of winnings to HALotto as donations which should then be tax deductible.

Interesting,

The only problem is that unless HALOTTO was properaly registered US 501 (c3) non-profit organization, you could not write off a dime.

Good luck to all, Mike

hmmm, seems fishy cause aren't donations to the Red Cross tax deductible and there are people earning buku money thru the Red Cross.
Anyway, i would also think it is quite likely that a person doing the above idea could write off the cost of playing the US lotto.

Originally Posted by coaster7777

hmmm, seems fishy cause aren't donations to the Red Cross tax deductible and there are people earning buku money thru the Red Cross.
Anyway, i would also think it is quite likely that a person doing the above idea could write off the cost of playing the US lotto.

Red Cross is obviously properly registered, and even if officers are making obscene money, this is legal. No lotto tickets are tax write offs that I know of, so it would take a miracle to find such a deal. (g)

Good luck to all, Mike

coaster,
imho anyone doing a little reading and research (if not just common sense) will agree with Mike (1).
Hasse

(1) http://www.irs.gov/pub/irs-pdf/p526.pdf (IRS document on charitable contributions - read page 2, table1, second column)
Some other google hits for who'ld like to donate to (true) charity organisations:
http://www.ftc.gov/bcp/conline/pubs/tmarkg/charity.htm
http://www.give.org/reports/index.asp
http://ag.ca.gov/charities/charit_giving.htm (Canada)

Not trying to disagree with you OSW, just want to get accurate info out.
a google search of US gambling tax laws will provide many links to the such info as:
you can claim gambling losses, but only up to the amount you win.
if you make nothing and or lose money, you can claim nothing.
if you make $600 at one time in any sort of gambling within the US, you and the IRS will be issued a W-2G tax form.
if you make $5000 or more, you will be taxed 28%.
basically if you make $5000 or more, the IRS sees gambling as your self employed income.
if it is not quite legal to deduct donations to HALotto, you can be crafty enough to make the deductions anyway, Goodwill, old auto donation, etc, etc.
peace.

ahhhh but where are your receipts for your tax returns ???

One needs to have a paper trail to back up the statements with the irs.

Originally Posted by azmia

ahhhh but where are your receipts for your tax returns ???

One needs to have a paper trail to back up the statements with the irs.

You should add "If you are audited by the IRS..." you will need the paper trail...But only if you're audited.

The IRS has 3 years to question a tax return; after that you don't need the records any longer. The only issue you have is IF they do audit you and they find discrepancies and these discrepancies occur for multiple years, they can get a court order to go back more than 3 years.

Basically, "Forewarned is forearmed."

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.

exactly...'if' is a word that when murphy wants to come a calling i wouldn't want to be without .... having had the dancing experience with them once i can tell you that is more than enough with that partner on the dance floor....