![]() Same a McDonalds mailing you a coupon for $1 off a Big Mac. Gotta be in the 10's of millions.Ī hotel mailing you a "free room" offer isn't "Comp'ing" you a room. I can imagine what his gambling losses were. If you add up those comps for the three years, you get $2,545,126. even though IRS taxed Bobby on the rest of his comps such as these: Great! Now I understand why IRS did not bother to tax Bobby LiButti on his comped-rooms. It seems that gifts (i.e., Harrah's weekly free room offers) are a loophole for the income tax purpose, and that IRS cannot tax the gamblers on the gifts of free rooms. Anything you received as an promotional offer for just showing up would be a gift. The way I would interpret it is anything you received as the result of points earned, a drawing, or a tournament, is taxable. The book gives examples of gifts and comps earned. There is a grey area between what counts as a gift, and what was earned. ![]() The general rule is that if the player earned or won the comp, it is taxable. ![]() Chapter 3 of Tax Help for Gamblers by Jean Scott and Marissa Chien deals with the topic of taxation of comps. ![]()
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