Originally Posted by
brooklynmatt
- I am still arguing that point.
So what's your argument? As I already pointed out, if you lose a played tip, that comes off your W/L too. There's no disparate treatment. You can't have it both ways.
Originally Posted by
brooklynmatt
yeah, that is a further example of how that same money gets taxed again.
I'm cool with the government taxing that income. Just not me also. Pick one, don't tax the same money twice.
The labeling of the same 5K as winnings and as income mean the effective tax that is received by the IRS is double what they should receive from 5K.
And again, the problem is that it's not the same money. The IRS gets to put its hand out an additional time because there is an additional transaction. You won money playing blackjack, that's one transaction. Then you tipped the dealer, that's another transaction. They're both income which is why the IRS gets a cut. They are separate, independent actions.
Complaining about tax on these separate transactions is like complaining that you had to pay income tax on $5 that you earned at work, then when you go buy your morning coffee you have to pay sales tax on that, and the coffee company has to pay taxes on the profits, and the barista who served you has to pay taxes on his income, and then so does the coffee bean supplier etc. etc. etc. etc. That's not what people are complaining about when they complain about double taxation.
You have to understand the concept of separate transactions or you are going to get burned when the IRS thinks you're cheating them.