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Not to mention that retaining contemporaneous records, so you’ll be able to see how you’re doing, is among the important steps to turning into a member of that nearly extinct species, profitable horse race bettors. If you do not know what bets you’re dropping, you possibly can’t figure out why you’re dropping and what steps to take to stem the leakage.
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But most of those Cohan rule cases end up permitting the bettor a deduction that’s not as big as the quantity of their winnings, because judges nonetheless look with disfavor on gamblers, so there’s still some net betting revenue on which tax is due. If, like most bettors, you lose cash over the course of a yr, the best course is to make use of your ADW account and – presto! – you have the contemporaneous data required by the IRS guidelines.