This Kentucky Derby Bet Nets Cash, Aids Boston Victims, Even Tax Write-off
Geege Schuman stashed this in Horses
Kentucky Derby contender Wicked Strong was named in honor of the victims of the Boston Marathon bombings. He is owned by Centennial Farms, which pledged to donate a share of any money the colt wins to victims of the bombing. When it came to names, the ubiquitous “Boston Strong” was taken. Yet around Boston, “wicked” means “very”, and very strong he is.
The 3-year-old colt is owned by Centennial Farms, whose president Don Little comes from Boston. It isn’t only Wicked Strong’s name that honors the bombing victims. A share of his earnings go to The One Fund Boston to support victims and their families. Kentucky Derby Prospect Runs For Boston Marathon Victims. Wicked Strong won the Wood Memorial, with a cash prize was $590,000.
"So depending on the type and size of your winnings, the payer might provide you with a Form W-2G, for gambling winnings. They may even withhold federal income taxes from the payment. Even if they don’t, you still have to report it and pay tax."
If you're lucky enough to win.
If you're not lucky enough, know this:
If you itemize deductions, you can deduct your gambling losses for the year on line 28 of Schedule A, Form 1040. Still, you can’t deduct gambling losses that are more than your winnings. To deduct losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.
This is why most people are not able to claim their losses. Thus, keep an accurate diary or other record of your wins and losses. Good records are key. Recreational gamblers need to keep a diary or other contemporaneous record of how much they bet and lose on each visit.
I think it's rather unfair that you can only deduct losses if you win something.