Comments on: More Response to your Comments

By: Kevin Lewis

Kevin Lewis — Wed, 20 Feb 2013 02:31:16 +0000

There’s something I’d like to mention re whether comps and extras are “worth it.” If you receive a comp with a nominal value of $X, that comp is only worth your actual “reservation price” for the good or service. Thus, a comped cruise with a face retail price of $1000, but for which you would only have paid $600 if you had forked over actual cash for it, is worth $600. The same calculation can be made for comped meals, rooms, etc.
If a casino offers a comp, that comp is calculated at full retail, but its actual cost is less than that. Casinos like that because they can expense off the entire retail cost (nice dodge!). So let’s say a $100 meal comp costs the casino $50. Your reservation price (the amount you would have paid for the meal) is $75. Both you and the casino benefit. However, if you had to endure more than $75 of theoretical loss to get that $100 comp, you’re actually a loser. If you played with -$90 of theo to get that $100 comp, you’re -$15 if you would only have paid $75 for the meal.
I am stating the above because many here have been critical of playing -EV games for comps and perks. But it’s impossible to calculate the benefit of a comp for anyone but yourself. How much is a free room worth? It depends on what you would have paid for it, as well as the opportunity cost of going and staying there. the value, in other words, has a highly subjective component (as well as an objective component–the wholesale cost of the comp to the casino).

By: Mary H Jones

Mary H Jones — Tue, 19 Feb 2013 17:12:21 +0000

I have been a tax preparer for the past 4 years. It’s amazing how many people don’t keep records of their earnings and expenses whther they’re itemizing or claiming business expenses. The IRS won’t accept estimates. Written logs ( whether handwritten, typed, or computer generated) are what the IRS will look at. Having extra backup verification helps.

By: Kevin Lewis

Kevin Lewis — Tue, 19 Feb 2013 16:53:15 +0000

I’ve had diametrically opposing reactions to my (non-)recordkeeping in the past, in each case, from profethional IRETH agents. One just laughed and said that the W-2Gs didn’t mean anything, and that the IRS knew that. Another scowled at me and said that my W-2Gs clearly showed that I had made billions of dollars playing 25 cent VP and that if I came clean now, I’d get off with just the death penalty.
You have to keep in mind that just as when you’re dealing with any government agency (or most large organizations), there’s a 90% chance that the person you’re talking to is a complete idiot. Therefore, never settle for one IRS drone’s opinion–they will tell you the wrong thing with a straight face because what the heck, they work for the government, so they can’t be fired for such a trivial thing as constantly giving out wrong information.
Whenever I’ve gotten deep enough into the system (fighting my way past all the zombies), I’ve been told that the IRS does NOT, repeat NOT, consider W2-Gs to be evidence of winnings. Slot club win/loss statements are accepted as proof of net wins/losses, but as that same IRS agent (who was remarkably candid) told me, they really don’t have any way to prove you had a net win for the year, unless you had a monster jackpot somewhere along the line. So if you believe that you had a net loss or insignificant win despite all your W-2Gs, stand your ground. They’ll try to bluff you and threaten you. Deal with them like you dealt with the playground bully. They’ll eventually slink away and find someone else to beat up.

By: QZ

QZ — Mon, 18 Feb 2013 04:19:03 +0000

By the way…

I was audited for two years. I submitted my
records via a copy of a spreadsheet. I have
never kept a hand-written log. These records
were deemed sufficient.

I suspect the requirement for a hand-written
log went the way of the 8-Track tape and
dial telephones.