A thread about the Senate proposal: The bill limits gambling losses to 90% of those actually incurred. For pro gamblers, the 90% limitation also applies to business expenses. This may impact many, but is much more punitive to those with large gross winnings and losses.

Correction. The 1099-K threshold was previously $2,500 for 2025* The new $20,000 and >200 transaction threshold now applies to 2025

Two other provisions in the OBBB that may affect gamblers: Beginning in 2026, the 1099-K threshold reverts back to $20,000 AND >200 transactions. The threshold remains at $2,500 for 2025. Also in 2026, the threshold for 1099-NEC and 1099-MISC issuance is $2,000, up from $600.

There are other factors that could impact the total tax owed (self-employment tax, state tax), but you get the idea

Timeline: The 90% loss limitation would be in effect as of 1/1/26. All gambling losses incurred during Tax Year 2025 are still 100% deductible, up to your gambling winnings

Closing thoughts: The House can still make revisions to the language in the bill. If passed, it is possible that individual provisions, such as this, are revisited in the future (although this would take time).

Second, thoroughly track session results. Accurate session results will be vital, especially for pros (APs, online poker and sports bettors) and high-volume recs. Session accounting can be a saving grace even with high volume if documented and reported properly

If the bill is passed as written, what can you do? First, revisit the definition of session for each gambling activity. Specifically, sports betting and online poker MTTs. Document the support for your position (or discuss with your tax pro or attorney) for each game type

If you are a U.S. citizen or resident, this limitation applies to ALL gambling losses. This includes wagering on unregulated books, foreign poker winnings and anything else that meets the IRS of gambling activity (DFS, etc.). it is not limited to regulated or W-2G winnings

If you have $100k in winnings and $100k in losses, you now owe tax on an additional $10k of income. Assuming a 24% tax rate, that is $2,400. However, if you have $1mm in winnings and $1mm in losses, you now owe tax on an additional $100k of income ($24k of additional tax).

Breaking BOI news. Again! The full 5th Circuit vacated the stay of the temporary injunction. The injunction is back, and BOI filings are now voluntary (again).You can see the order here: https://t.co/2GiDdJiQcx #TaxTwitter #BOI

FinCEN has provided a brief respite in light of the stay of the injunction: Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would

The long-term outlook of the BOI requirement is still unclear. For now, you must remain in compliance with the original deadlines. If your entity was formed before 1/1/24, you must file a BOI report before 1/1/25. Any formed after 1/1/24 must file within 30 days of formation

Today, the 5th Circuit of Appeals stayed the ruling against BOI reporting. As a result, the BOI reporting deadline remains January 1, 2025 for entities formed prior to 1/1/24, as per the original CTA guidance.

As the year draws to a close, it is important to revisit the upcoming changes to digital asset reporting. Both 1099-DAs and "per-wallet" tracking will be in effect beginning 1/1/25. https://t.co/bfkOsXjq3l

Per FinCEN's website: "In light of a recent federal court order reporting companies are not currently required to file BOI and are not subject to liability if they fail to do so while the order remains in force. Reporting companies may continue to voluntarily submit BOI reports"

The U.S. government has already appealed the injunction on the BOI filing requirement. However, the injunction will remain in place until there is a ruling. This will, most likely, not be resolved in the near future.

A Texas federal court imposed a nationwide injunction on the BOI filing requirement. As a result of the ruling, FinCEN will not be able to enforce the filing deadline. This provides relief to any LLC or corporation owners who have yet to file. https://t.co/Cp6U9wv8rb

Is this the year the W-2G threshold for slot machines will increase? Probably not. However, the proposal to increase the reporting threshold from $1,200 to $5,000 now has IRS support and could be addressed in the near future. https://t.co/hRFFMRFOLA

The sports betting tax landscape continues to be a challenge for recreational gamblers. Tax surcharges are not deductible as gambling losses.