Author Topic: Can I start a side business for gambling?  (Read 1797 times)

FSL

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Can I start a side business for gambling?
« on: January 28, 2015, 10:23:10 PM »
Can my husband start a business (sole proprietor, LLC, etc) for a gambling business? My husband is a programmer and in his free time has developed sophisticated analytical software to analyze certain markets. Then when he has traveled to Canada, he has placed several bets. 2014 was the first year he did this and he made roughly 20k which we plan to report on our taxes as gambling wins. However, we are wondering whether this can be a true side business for tax purposes in order to reduce the profits by costs incurred (server costs for software, fees, etc)? If it continues to go well, there is potential to consider doing this full time, and if it's a true business, I assume we can create some form of 401ks as well.

Does anyone have any links to resources that can help us learn how to set up a business and whether gambling qualifies? Any other tips are appreciated!

jmusic

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Re: Can I start a side business for gambling?
« Reply #1 on: January 28, 2015, 11:14:15 PM »
If by "markets" you mean anything related to stocks, forex, bonds, futures, etc. then they should be reported as short term capital gains, not gambling.  Otherwise, Google is your friend...

http://casinogambling.about.com/od/moneymanagemen1/a/Gambling-As-A-Business-And-Taxes.htm


FSL

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Re: Can I start a side business for gambling?
« Reply #2 on: January 28, 2015, 11:37:20 PM »
Thanks! It's not securities trading. More sports betting or poker.