Friday, September 12, 2008

Black Market for Used Lottery Tickets

(aka. Turning a Losing Hand Into a Winning One)

Just to prove where there is a will there is a way or where there is a law there is a black market. I would like to shine a little light on the losing ticket racket. Now these percents vary given a persons income, the amount of the prize, the state etc but as a general over view here is how it works.

When you win a prize say $100,000 your winnings are taxed. Lets say for example you get to keep $60,000 and you have a $40,000 tax burden on your winnings. This tax burden can be offset by showing gambling losses that can be itemized on your tax return. So if you have $20,000 dollars in non-winning tickets, or casino receipts, or betting tickets you can reduce your tax burden by that amount. For simplistic sake we will say now that you can show a $20,000 loss your take home on the $100,000 is now $80,000 instead of $60,000. You give yourself a $20,000 raise by going to a used ticket broker. Where you purchase $20,000 worth of used or non-winning slips for say $2k So you are paying $2k to get $18k more of the prize money. Make sense? It is a little more complicated then that but that is it in a nut shell. You can write off up to your current winnings and to a percent of your income. (Check local laws before attempting and remember tax fraud = pound you in the ass prison)

So when you are checking your tickets at the store and are inevitably told they are losers watch what the clerk does with your losers. They might be putting them in a separate drawer or bin where they are stock piling them for trade on the black market in which case I would immediately ask for a cut of the action.

Also curious is to watch people comb the bins and trash cans after your local horse races for betting slips.

WTF? Check Ebay or Craigs list for Used Lotto Tickets or people fronting as "Lotologists" you will find the right people to help you keep more of your money through itemized deductions.


Rocketstar said...

Are you serious, I did not know that, "gambling losses that can be itemized on your tax return".

scargosun said...

We even have a section on our client profiles asking if most of their income comes from gambling.

Brian in Mpls said...

If you win large chunks of money you have to report them as income and just like your regular income you can write off the amount you spent earning that money..

used tickets are the office space write offs for gamblers....

lauren said...

You know so many random things. Does this rule apply to joint filings? It would be good for us to know before the ceremony.