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Thread: Did the Tax Cuts and Jobs Act of 2017 Change How Comps Are Taxed

  1. #1


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    Did the Tax Cuts and Jobs Act of 2017 Change How Comps Are Taxed

    My understanding was small value comps like free drinks, free meals, and free rooms were not considered taxable because they were considered rebates similar to credit card cash back where you have to spend money to get any benefit.

    This link is to such a discussion, but it was before the Tax Cuts and Jobs Act of 2017.
    https://www.arahcpa.com/blog/gamblin...d-losses/39522
    I can't find much information on this after the new law, but some articles are suggesting comps are taxable. Anybody have any updated information on the tax-ability of small value comps.

    Is this addressed at all in the 4th edition of Tax Help for Gamblers? Dog Hand did you read the book?
    Last edited by Midwest Player; 02-26-2020 at 07:32 PM.

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    Why?

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    Quote Originally Posted by Eye of the Eagle View Post
    Why?
    What the hell is this suppose to mean? It tells me nothing. It's like when I ask my wife how long before supper is ready and she answers "not long." Drives me crazy.

  4. #4


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    Quote Originally Posted by Midwest Player View Post
    My understanding was small value comps like free drinks, free meals, and free rooms were not considered taxable because they were considered rebates similar to credit card cash back where you have to spend money to get any benefit.

    This link is to such a discussion, but it was before the Tax Cuts and Jobs Act of 2017.
    https://www.arahcpa.com/blog/gamblin...d-losses/39522
    I can't find much information on this after the new law, but some articles are suggesting comps are taxable. Anybody have any updated information on the tax-ability of small value comps.

    Is this addressed at all in the 4th edition of Tax Help for Gamblers? Dog Hand did you read the book?
    Midwest Player,

    Yes, this topic is covered in Chapter 3 of the 4th edition, published in 2019. That chapter also covers drawings and tournaments as well.

    Sorry it took so long for me to reply: I had to track down my copy of the book.

    Hope this helps!

    Dog Hand

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    Quote Originally Posted by Dog Hand View Post
    Midwest Player,

    Yes, this topic is covered in Chapter 3 of the 4th edition, published in 2019. That chapter also covers drawings and tournaments as well.

    Sorry it took so long for me to reply: I had to track down my copy of the book.

    Hope this helps!

    Dog Hand
    Thanks Dog Hand. I bought the kindle version and read Chapter 3. I like the book. However, it appears there are many gray areas and these comps are one of them.

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    Seems to me comps are like personal frequent flyer miles accrued when your employer pays for the travel. They're not taxable.

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    Quote Originally Posted by 21forme View Post
    Seems to me comps are like personal frequent flyer miles accrued when your employer pays for the travel. They're not taxable.
    It depends on the value of the comps. The IRS says high value or major comps are taxable (car etc) so where do you draw the line.

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    Quote Originally Posted by Midwest Player View Post
    It depends on the value of the comps. The IRS says high value or major comps are taxable (car etc) so where do you draw the line.
    Is the car a comp or prize from winning a drawing?
    If a drawing, I've gotten 1099-MISC's for cash won. I've not gotten tax forms for casino cruises, RFB, or airfare reimbursement, which are forms of comps. If conversion of comps to pricey merchandise, such as a car, I don't know the answer to that.

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