Current Events > Paying taxes on lottery winnings...

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Let's say you spend 100$ in the lottery.

One of your tickets get you a 100$ win, the rest lose. You play that 100$ and you lose.

So at the end of the day, you started with 100$ and you end up with 0. So you lost 100$.

But technically, you also had a 100$ win, which you lost.

Do you have to pay taxes on that 100$ win which you re-played?
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frozenshock posted...

Do you have to pay taxes on that 100$ win which you re-played?

No, otherwise Casinos wouldn't work. Well maybe technically, I dunno.
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You are allowed to deduct losses up to the taxable winnings. So it balances out.
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Anarchy_Juiblex posted...

frozenshock posted...

Do you have to pay taxes on that 100$ win which you re-played?

No, otherwise Casinos wouldn't work. Well maybe technically, I dunno.

Casinos are taxed on their net profit and not on a per-transaction basis.

If you had a casion that lost $100 in a bet and then won $100 in the next bet and then closed for the rest of the year, they'd be taxed on $0.

if they lost $100 and then the guy doubled down and bet $200 and they won that and then closed down for the rest of the year, they'd only be taxed on $100.
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Here in the Netherlands, you can't.

You always have to pay taxes over your winnings, you can never deduct the money you invested.

That means that even if you gamble, and manage to end up at 0, you still have to pay taxes over the money you have won. So it is possible, depending on how much you won, to get the balance back to 0, you end up with a loss.

Simple example, you start with 1000 dollars, you lose 500, and with the remaining 500 you win the 500 you lost back. So your net gain is 0, but you have to pay (for example) 50 dollars tax over the 500 you lost. Even though you ended up with a net gain of 0, you still lost 50 dollars to taxes.
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Here in Oregon anything less than $600 isn't taxed at all
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Bad_Mojo posted...

Here in Oregon anything less than $600 isn't taxed at all

That's the case in most states IIRC, it is here in NY too at least.
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