Guest Author - Kate Woods
So when we last checked in on the Player known as Prince Charming he was trying to regroup and just about to head out for a game of hide and seek. He was going to hide from Wives 1, 2 and 3 and he was going to seek for a new lady love by the name of Cinderella. The word that was traveling the forest grapevine was that Cinderella was so hot that just looking at her made a man sizzle but that she was aloof and had rebuffed many a man who had come courting. The Prince wasn’t worried about that thought because he was a Player extraordinaire. After all, he had landed not one, not two, but three wives and even though they were seeking legal council and tax advice he knew that all he had to do was get them each alone and he’d have them eating out of his royal hand again. At the very least he would have to woo Snow White back to his bed because word about the forest was that she was carrying his baby and he really needed the additional dependency exemption for this years return since he probably would not be able to claim Sleeping Beauty and Rapunzel this year. But he knew he had to give Snow White time to cool off and time to miss him before he set out to regain control of his wife. Who did those women think they were anyway; didn’t they know that he was the man and they were supposed to obey his royal commands? He had certain rights as the husband and right now the right he was most concerned about was the right to hunt. He was on a hunting trip to find Cinderella. He had gaming rights and he was going to use them.
His Royal Attorney told him he shouldn’t leave the kingdom with everything that was going on but he told him he was the Prince and he’d do what he wanted to do. So he gave him a bunch of papers to read while he was hanging out by the campfire at night while on his journey to find Cinderella. It was tax stuff. As if he understood any of that stuff. Like the law that said he had to pay tax on his winnings from wagering and gambling if he won more than he lost. Well of course he won more than he lost he was a top notch player in all games; but who keeps track of that stuff? I mean at the last Royal Carnival he bought 10 raffle tickets at $10 each for a chance to win $1000 King of the Realm dollars and won. Now his attorney and his tax advisor were both telling him he had to pay taxes on the amount he won that was greater than the amount he spent gambling and that he had to be able to prove he had gambling losses equal to or greater than the winnings if he as going to offset his gambling gain. As if that wasn’t annoying enough they said if he didn’t itemize he’d lose the benefit of any offset from gambling expenses. He had to itemize and include his losses on Schedule A under Miscellaneous Deductions and could not deduct more than he won. To deduct gambling losses, you had be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. The information indicated that gambling winnings were fully taxable and were required to be reported on your tax return. Gambling income included, but was not limited to, winnings from lotteries, raffles, horse races, and casinos. It included cash winnings and also the fair market value of prizes such as cars and trips.*
What the heck, now the Royal Tax Collector was messing with his gaming. Is there nothing sacred anymore to protect the life and times and money of a Player? With a heavy heart and greatly annoyed the Prince decided to get some shut eye by the campfire. He was tired of thinking about all this money and tax stuff. It was time to sleep and dream about finding Cinderella. He was on a mission. He’d find her, win her heart and take her back to his Kingdom for the Royal Holiday Holly Ball. He’d show all three of his Wives that he was still the Man. They would all be so jealous when they saw him with Cinderella that they would all run right back into his arms and his control. He’d show them who was in charge and he’d show his attorney and royal tax collectors who was in charge as well. He was Prince Charming and he was the best Player in the land. As he drifted off to sleep he began outlining just how he would set the stage for the game that would be played at the Royal Holly Ball. Yes indeed, there would be a show down at the Royal Holly Ball. He’d see to it that all the participants were in attendance so the game would proceed according to his plan. The Royal Holly Ball would be a blast.
I hope you’re enjoying Tax Facts on the Taxing Subject of Taxes.
*This information is applicable to today’s gambling winnings and losses. For additional information related to gambling winnings and losses refer to IRS publications 525, 505, and 529.
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