Overheard Conversation

[pimentoLoaf]

Two people (someplace in the US) are talking and saying this (approximately; I don't recall the exact figures they said):

A- If the casino gives you a W2g, then you have to report the win to the IRS.

B- But I didn't get a W2g because I had a bunch of little wins. Back and forth to the cashier and it totaled about $2000.

A- Don't worry; if you don't report it, they won't find out.

B- Only that I banked it: 20, $100 bills. Won't the bank find that suspicious?

A- The bank's not going to worry about where you got your money. They only report in excess of $10,000 -- or if you appear to be a gang member. You're not a gang member.

B- But ...

A- Stop worrying about it. No one's going to find out. People do this all the time.

 

[dukebound85]

i have a very hard time with the fact that i can gamble my post tax money but if i win, i have to pay taxes on it

 

[obeygiant]

i have a very hard time with the fact that i can gamble my post tax money but if i win, i have to pay taxes on it

capital gains.

 

[Abstract]

You need to report your casino earnings in your tax form? Now that's just silly.

 

[sickmacdoc]

I used to attend horse races with a friend on occasion, and the only time the track would give you a W2 when you got your payoff is if the odds on your winning bet were greater than 300:1. He got hit with that on at least two occasions that I can remember but he really didn't care after a 300:1 win.

 

[iBlue]

i have a very hard time with the fact that i can gamble my post tax money but if i win, i have to pay taxes on it

Same here. It's still not as cruel as the inheritance tax. I think that is a disgusting load of crap. If the UK can find a way to tax it, they will… heavily.

 

[Kernow]

i have a very hard time with the fact that i can gamble my post tax money but if i win, i have to pay taxes on it

This doesn't happen in the UK - gambling wins are tax free, unless it can be established that it is part of a trade, i.e. you are a professional gambler (and even then, simply having all your income come from gambling isn't enough). This is quite hard to establish, so for most people, gambling isn't taxable.

 

[Chundles]

Gambling winnings aren't taxed here either so whether you win on the horses or even the lotteries you don't pay any tax on it.

You do pay tax on any interest generated by those winnings though.

 

[rhsgolfer33]

Same here. It's still not as cruel as the inheritance tax. I think that is a disgusting load of crap. If the UK can find a way to tax it, they will… heavily.

I'm with you on that one. How many times have the people who are passing that money down payed taxes on it? Lets see, income tax, tax on interest earned, possibly capital gains tax, and probably a few others. If the inheritance in staying in the immediate family or being passed to a nonprofit, I don't think it should be taxed, regardless of the value of the estate.

With the sheer number and percentages of different taxes being levied you'd figure there would be no problem keeping a balanced budget, most of the past world leaders have certainly proved that wrong.

Yeah, many European nations tax rates/policies make the U.S. policies look tame.