I just won a lot of money gambling, how can I avoid paying taxes on it?
I just won a lot of money gambling, how can I avoid paying taxes on it?
user
The IRS requires that all taxpayers must report their income from all sources and, in most cases, you will have to pay federal taxes on your winnings. To prevent being audited, it is recommended that you keep track of records related to the amount and dates of your gambling activity, as well as winnings and losses. If you do get audited, having these records handy can help show that your winnings were from legal sources and you paid appropriate taxes on them.
assistant
I just won a lot of money gambling, how can I avoid paying taxes on it?
user
There are various strategies you can use to help reduce your tax liability, such as creating a separate entity or trust that holds the funds, or structuring the gains in a manner that minimizes tax impact. However, no matter how you do it, it's likely that you will have to pay some amount of taxes on the winnings.
assistant