Kentucky Horseplayers Caught Off Guard By State Tax Law Changes

A measure enacted last year in Kentucky could hit the wallets of bigger horseplayers in a significant way this tax season.

Blood-Horse reporter Frank Angst details how a tax law update from Jan. 1 2018 did away with the itemized deduction that allowed bettors to claim gambling losses against winnings, up to the amount of the winnings. This applies only to state tax filing.

But the state addition to the law seems to fly in the face of new federal measures which have given horseplayers much more freedom in wagering and far less onerous reporting standards.

“Given the fact that KRS 141.019(2)(c) now prohibits taxpayers from deducting any losses permitted under Internal Revenue Code section 165 for state tax purposes, Kentucky taxpayers can no longer deduct gambling losses against winnings for purposes of determining their Kentucky income tax liability,” Louisville attorney J. Christopher Coffman told the Blood-Horse. “Kentucky taxpayers are still permitted under Internal Revenue Code section 165 to deduct gambling losses against winnings for purposes of calculating their federal income tax liability.”

Read more at BloodHorse.com

The post Kentucky Horseplayers Caught Off Guard By State Tax Law Changes appeared first on Horse Racing News | Paulick Report.

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