Quote Originally Posted by jimsmith View Post
Are there certain rules about filing as a pro gambler like you cannot file the first year if you have a loss?
I don't think there is anything that says if you have a loss the first year you can't file as a business. A lot of start up companies have a loss when they first begin, but if you get audited the IRS will want to see if you have a profit motive and if you are really an advantage player. Can you back up your claim of being an advantage player with proof of any casino back offs? Sometimes the casino will send a letter saying you are not welcome anymore. I do think the size of the loss would be a large determining factor. If they look at your records will they see any improvement or are the losses so large they don't see any hope that you are possibly playing an advantage game. Again I'm no expert here.

If it was me, I would not file as a business my first year if I had a loss. However, things are very different this year with the large increase in the standard deduction making itemizing much harder to justify.