safe harbor method for calculating wagering gains from electronically tracked slot machine play - To adopt this method, a taxpayer must note "Revenue Procedure 2015-X" on line 21 of Form 1040.
Then, does it mean that I calculate the gain per session, then report the combined total of gain as one number next to line 21 of Form 1040? Instead of reporting Gross on line 21, then loss on Sch. A?
It's a _proposed_ revenue procedure, as you can tell by the "X" in what you need place on your tax return. But that's the basic idea; you would calculate the gain/loss on a per session basis, and total the gains on line 21 and the losses on Schedule A, as opposed to the current status that the IRS believes you should log each individual wager, and report the gains on line 21 and the losses on Schedule A.
The law is that you _may_ report on a per-session basis if you keep contemporaneous logs. This safe harbor would allow you to report on a per-session basis based on the club card reports.
-- Arthur Rubin CRTP, AFSP, in Brea, CA
So it will result in ultimate netting effect of income and losses in calculating the gains/losses.
You first determine your gain or loss on a session basis. So gains and losses WITHIN THAT SESSION are netted.
Then, you add up the total of your sessions with net GAINS and report that number on line 21. And you add up the total of your sessions with net LOSSES and report that number on Schedule A, but this number must be limited to not more than the amount of the gains reported on line 21.
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