THE CASE OF “BIG BETTER BONNIE”

Bonnie loved the casinos and even though she had a full time job, managed to get in 20 hours a week in the land of oz, and she won regularly in rather large amounts. Unfortunately, she also put in more than she got back. Now the federal and state tax authorities have devised ways to punish this activity even if you lost money.

The IRS requires the gross investments to be added the adjusted gross income, so if you win $100,000 or more it serves to reduce a lot of your regular tax benefits. Also, in Minnesota you can get caught in the alternate minimum tax rates, even if you lost money on these “investments” If you get to pay extra tax in the thousands of dollars.

It’s just another way for politicians to push the envelope of punishing “sinners” add money to the coffers, and “they probably don’t vote anyway”

So if you love to gamble and are lucky, be prepared to pay at the end of the day.