Let me know if I understand this new tax correctly:
_________________ _________________ _________________ _________________ _________________ _____
Scenario one: During the year I show winning $100 & losing $200 dollars I would not owe any tax on my winnings:
Winnings: $100
Losses: $200
90% of losses: 0.9 × $200 = $180
Deduction limit: the lesser of your winnings ($100) or 90% of losses ($180)
Deduction allowed: $100
Taxable gambling income: $100 – $100 = $0
So even though the bill disallows 10% of your losses, in this scenario your full $100 of losses still covers your $100 win. You won’t owe any tax.
_________________ _________________ _________________ _________________ _________________ ______
Scenario two:
During the year I show winnings of $100 & loses of $108 I would owe taxes on $2.80.
Winnings $100.00
Losses $108.00
90% of Losses $97.20
Deduction Allowed (lesser of Winnings or 90% of Losses) $97.20
Taxable Gambling Income (Winnings – Deduction Allowed) $2.80
No.
Presently you can only deduct losses up to your amount of winnings.
In your first example, you can't deduct $200 presently or $180 going forward.
Going forward, you can deduct losses up to 90% of your winnings.
So, in your first example
Win $100
Lose $200
Your allowable deduction is 90% of the $100 you won, or $90.
Winnings: $100
Less: Allowable Deduction $90
= Taxable Income $10
So, Ipso Fatso, you owe tax on $10.
Which is all kinds of fun since you'll owe tax on income you never received.
But alas, don't despair for gamblers.
Just like Mitch McConnell said of poor white folks losing Medicaid, "Well, they'll just have to get over with."
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