Gamblers get a tax increase from MAGA

I can't deduct my gambling losses, so this doesn't seem to affect me, but if you do MAGA is raising your taxes. Yea MAGA!!

From the latest David McKee LVA blog:

"Tucked away in the federal budget that passed the U.S. Senate yesterday by one vote is an obscure provision whereby taxes on gambling win go up: way up. Did you used to deduct gambling losses on your taxes? Tough shit, friend. Now your deduction will be capped at 90% of net winnings."

This could be the end of professional gambling in the US, can you say goodbye WSOP, WPT etc?

Phil Galfond on X: "This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too. You could pay more in tax than you won. Contact your representative quickly. https://t.co/U5yToBZDcQ" / X

Tom, David, Boiler. Aaron and Charles built that.

It's a kick to the nuts if you have a losing year. 

Do I have this right?  Let's say your winnings are $100,000, and losses are $110,000.  Today, you can offset completely your winnings with the losses and not pay any taxes on the winnings.   But on the new bill, your "losses" would by (0.90 * $110,000) = $99,000, which means you would pay a 24% tax on ($100,000 - $99,000), or $240, which sucks because you had a bad year.

I agree this sucks, for people who itemize on their taxes.  I am guessing most of us here do not anymore.  The good news in the above example is that 240 bucks is the price of a one night comp night on the strip.  Lucky for us they are not yet taxing our comps.

Vegas Matt probably shit himself 

Very true PJ

How 'bout this one? Your wins total $100,000. So do your losses. You now owe $2,400 on your nonexistent "win."

This isn't the first time the Turd has fucked over gamblers. The 2018 Turd Bill basically made it foolhardy to itemize. You should only itemize now if you have gigantic deductions in the few remaining allowable categories.

But then, Trump has been in the casino business for a while, so fucking over gamblers must come naturally to him.

He could still save his ass if he files a Schedule C and treats his slot losses as business expenses (rather than personal gambling losses). He could make a defensible case for that, in that his slot losses are intrinsic to the brand/story he's trying to sell: a necessary expense.

Let's call it the David Miller tax.  

When a dog shits on my lawn, I already call it a Millerpoo.

But really, we have to be grateful for David. He pumps tens of thousands of $$ in losses into the Vegas economy, every single year. Without suckers like him to ream out, Vegas would be charging the rest of us even more.