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How does the tax bill affect filing as a professional?

There's a lot of stuff out there that's conflicting. I've heard:

1. The bill eliminates Schedule A for itemizing gambling losses.
2. The bill eliminates business deductions like travel, training sites, etc.
3. The bill eliminates the ability for professional gamblers to take a net operating loss based on business expenses.

I brought this up in the CLP slack channel and Bart suggested I started this thread here. So here it is, teed up for him to clarify this for us.

Comments

  • FreeLunch Posts: 1,311Pro
    Gambling losses: The act clarified that the term “losses from wagering transactions” in Sec. 165(d) includes any otherwise allowable deduction incurred in carrying on a wagering transaction. This is intended, according to the conference report, to clarify that the limitation of losses from wagering transactions applies not only to the actual costs of wagers, but also to other expenses the taxpayer incurred in connection with his or her gambling activity


    https://www.journalofaccountancy.com/news/2017/dec/tax-reform-bill-changes-for-individuals-201718070.html
  • BartBart Posts: 6,077AdministratorLeadPro
    edited December 2017
    1. Definitely not. There was much confusion over this as the language states “losses from wagering transactions”. Even if you file as non professional with a Schedule A in the past you were able to take certain deductions having to do with the “costs” of gambling. This would be things like ATM transaction fees, credit card cash advance charges, cost of reprinting a players card, etc. not normal business deductions like meals, travel etc if filing a schedule C.

    2. No.

    3. This was discussed and it’s possible, but I am not sure if this particular part of the bill was passed. But this would only effect professionals that had a losing year or small profit where business expenses would make that year overall negative. You are never able to carry over actual gambling losses from year to year.
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