Casino taxes lie in the category of entertainment tax with considerable revenue potential. The Internal Revenue Service expects the gamblers to report all their winnings along with their losses on their tax return. This is to be reported as the tax laws require it…
Download file to see previous pages...
The basic casino gaming tax laws which are to be followed by all states including Nevada and New Jersey are the following: Winnings from all types of gambling are taxable and should be declared as income on the tax return, while the losses from gambling are to be deducted as an itemized deduction for the spare time players, restricted to the amount of winnings declared. Players who are professional gamblers must hold a file as self-employed business using Schedule C. Schedule C is an Internal Revenue Service form used to file profits and losses by a company (What is Schedule C, 2011). The worth of comps received is considered as gaming winnings and are included in the total winnings. Though, the person is allowed to deduct the losses to counterbalance the income from the comps. The winnings and losses are reported only in the year of occurrence. Excessive losses are not to be carried forward or backward to balance winnings in other years. Married couples who file a joint return should combine their winnings losses, and account only one figure for both. According to the instructions issued by IRS, lumping is unacceptable. Lumping is either reporting only one final win figure and no losses, or reporting nothing if the net value from gambling is a negative. A person must report total of the winning sessions individually from the total of the losing sessions. The Internal Revenue Service requires an accurate record to be maintained to substantiate ones wins and losses. The records must contain at least the following information: the date and type of person’s particular wager; the name of the gaming organization or establishment with its location and address; the names of the other people, if any, present with the player; the amount the person won or lost. A report containing wagering tickets or receipts; W-2Gs; credit card records such as cash advances; cancelled checks; receipts provided by the gambling establishment and bank withdrawals is also require by the IRS to substantiate a person’s diary. A person does not submit these records with return but will be needed if the person is to be audited. As casinos and card rooms are subjected to the money-laundering rules therefore they must report cumulative cash transactions of ten thousand dollars or more in one day to the IRS. They can also make out such reports for amounts as low as two thousand dollars if they are doubtful and apprehensive. Once a casino has a person’s SSN and ID on record, they may issue these Cash Transaction Reports (CTRs) without his/her knowledge. Though the basic rules of casino gaming taxes are almost the same for every state but there are some differences as well. The revenues generated from the taxes in Nevada are used by the local governments and state general fund. In New Jersey the casino revenues provide financial assistance to the disabled and elderly. (State Tax Systems: recreational gambling, 2010) Casino gaming taxes in Nevada: A license fee is imposed at both local and state level. The range of County license fees is from $10 to $50 per month, whereas, the range of State monthly license fees is from 3% to 6.25% of the gross revenues. Range of Annual state license fees is from $100 to $6,000 for each year depending on size of the organization. Annually, an additional $80 fee is imposed on every slot machine for an unrestricted state license. Quarterly fee ranges from $45 to $225 plus 90 per machine for a restricted state licence fee (Rafool, 2004). Annually, $ 250 tax is imposed each slot machine. Casino entertainment tax equals to 10% of amounts
...Download file to see next pagesRead More
Cite this document
(“Casino taxes Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1418826-casino-taxes
(Casino Taxes Essay Example | Topics and Well Written Essays - 750 Words)
“Casino Taxes Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/macro-microeconomics/1418826-casino-taxes.
Everyone knows that a portion of the money they have earned will be going to the government to pay its bills, and most people will concede that taxes are a necessary evil if there is to be infrastructure, order, and public assistance among many other services which taxes fund.
The world has witnessed the failure of the planned economy with the fall of the former USSR. However, certain features of planned economy are still visible in the form of socio-political interventions that take place in the mixed economy capitalism. From the perspective of the American capitalist democracy, such policy interventions by the government are dangerous.
There are people and Politician’s that say the casino’s will bring in money to help the state, while on the other side many Ohioans are upset and see Ohio going down the drain. While people may still argue, the casinos have been granted approval and are being built at a rapid pace.
Tax liability: Effects of renouncing US citizenship
The efforts on reduction of tax liability has increased in the recent years as the tax payers feel that they are unfairly taxed on the income earned by them. The US income tax returns have become lengthy and tiring in recent times.
This paper intends to look into the different taxes imposed on crude oil according to the new tax codes imposed as an effective contribution to the global economy.
In this modern era, the industrial economy around the world has relied so much on oil as the lifeblood of every nation's major source of energy.
So the goal of the domain is to create maximum traffic of very potential clients. Targeting only the rich clients is not an easy task. A face to face interaction with the client is very essential to attract them to join the domain. A properly arranged meeting with such prospective clients must be conducted in order to persuade them.
Susan's concern is, in a tax perspective and given the eventuality of a bankruptcy, what is the optimal method for the additional $80,000: capital contribution or a loan to Bluegill Corporation
An individual who had opted to operate a business as a sole owner and organized the business as a C Corporation can elect to have the corporation taxed as if it was a partnership under Subchapter S of the Internal Revenue Code (Parker & Yash, 2007, p.
According to the author of the text, the amount of money that is circularized people to people by the country is the money that is collected in the shape of income tax, which is paid by the citizens. It is also mentioned that the idea was of Mr. Augustus Ceaser to apply tax system all around the world.
Currently many forms are making use of some remarkable vehicles to reduce taxation on their incomes. For example, whole life insurance is one of those vehicles which contract many tax benefits, i.e. if one doesn’t withdraw interest or gains, and then no
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Casino taxes for FREE!