I assume Foreign gambling losses, like domestic gambling losses, may be deducted only to the extent of gambling winnings. Losses must be documented with accurate records (date, place, type of bet, amount, etc.) and itemized on Schedule A as a miscellaneous deduction.
Now I'm curious If your client paid foreign income taxes on their gambling winnings, they might qualify for a foreign tax credit or deduction for those taxes, reducing double taxation.
Unfortunately, it sounds like you do not have much paperwork.
Good luck!
------------------------------
Marc Lusthaus
CPA, IL
ROBERT S. LUSTHAUS, CPA PC
Plainview NY
516-937-1366
------------------------------
Original Message:
Sent: 03-30-2025 10:01 AM
From: Andrew C. Demsky
Subject: Foreign gambling winnings and losses
Good morning, please someone give me your thoughts/experience with this subject. The income is income and reportable, but the bigger isue is whether the losses are likewise offset against the income to the extent of the winnings? I can't recall ever having a client with this scenario. There is no W-2G or any other report.
Your expertise and experience woudl be most appreciated. I don't know the country from which they were won. But it is over 6 figures in winning and more lost.
Thank you so much!!
Feel free to call me at 516-679-6504.
------------------------------
Andrew C. Demsky
Andrew C. Demsky, CPA
North Bellmore NY
516-679-6504
------------------------------