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I'm about to file my 2006 taxes and I am not sure how to calculate and report taxes on both tournament winnings and cash winnings. I'm hoping someone has been down this road already and can advise me.
Note: I do plan to report my winnings as income as a pro vs. a hobby (clarified well in the Tax Q&A section on this site).
Here are two examples to illustrate my questions.
1) Tournament winnings
Let's say for simplicity sake that I played 100 tournaments in 2006 and each had a $109 entrance fee. Total entrance fees is $10,900. Let's say my total winnings are $20,900. So my net winnings are $20,900 - $10,900 = $10,000. Ok, so far so good. I understand that I would report income as $20,900 and I believe I would record $10,900 under my itemized deductions. Though filling in 100 lines (or many of us have hundreds if not thousands of tourney and sit-n-go events to list here) seems rather cumbersome. I have everything in an Excel spreadsheet and that would much simpler if I could print and attach that. So the primary question is can all the tournament entry fees be listed under one line "Tourney entry fees ........$10,900" or do I need to list each and every event I play in.
2) Cash game winnings
For reporting cash game winnings, should total winnings and total losses be reported similar to tournament winnings? In cash games it is less clear of what your buy in is because I may start with $400, leave with $500, but maybe my full $400 was never fully at risk in one hand. I have several hundred cash games on record (and in a spreadsheet). Can a one line total of winnings and a one line total of losses suffice, or does each and every session get it's own line under itemized deductions?
If any of you are accountants in the state of Delaware, feel free to PM me.
Chris
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