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Thread: Taxable Valuation of Miles Won in Sweepstakes
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Old Jan 4, 2005 | 4:44 pm
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Bikeguy
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Offsetting Loss
Originally Posted by DennyO
You are taxed on "lottery winnings" such as raffle prizes. I think that is what happened here.
IF this was still 2004, you could go to any casino, join their slot machine club and be issued a card to insert in the machines.

You deposit $1250 into the machine in whatever coins it accepts. The casino keeps track of how much money you put in. However, they only report to the IRS amounts won over $1200, so even though their records show you lost $1250, you actually won back appromimately 90% on average, or $1125.

At the end of the year, the casino's will print you out a copy of all your losses if you ask for it, which you are allowed to deduct from all your winnings.

My grandmother does it every year.
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