99 Cents Can Help You Win More and Pay Less Taxes

Here is the best tax tip that Russell Fox thinks everyone should know!  You have to keep a log of your results. 

It is an IRS requirement to record wins and losses, but by keeping records, you’ll also know what games you’ve been winning and which games you’ve been losing.  That way you can play in ones you’ve been winning more and avoid the games you’ve been losing.  In theory, this should improve your results.  After all, the goal is to win as much as possible and lose as little as possible. 

Also note other interesting things that happen during the game.  Take player notes.  Very few players keep logs, so you’ll have an advantage.  You’ll be one step ahead, because you’ll have an understanding of your own game.  You do two things at once.

The IRS is a backwards agency.  When you’re playing live, they require that a diary be contemporaneously written, meaning that they want you to track it as you win and lose.  An Excel spreadsheet will not hold up in tax court, but a written log will. 

Investing in a small 99 cent notebook is deductible for pros, and for amateurs, it’s a good 99 cent investment.  It is required for live play.  Record keeping on a computer is not enough under IRS regulations.  It has been ruled that written log has to be written.  It does not mean done on a computer. 

Once you’ve got a written log you can put the numbers into excel and crunch them to get a hold on your game.  You can manipulate the data to see where you are winning and losing.  Then you can play where you are winning a lot more.