The C.S.C., Prize Money, and 1099 tax forms

I have had many discussions with fellow shooters about the developments involving 1099's received from the Cardinal Center.
While I understand there is probably no legal way to avoid them. And I understand the legal ways (expense write offs) to offset the tax. But the prize money we receive is overwhelmingly, para-mutuel.
So, my tax accountant informed me that the issuer (The Cardinal) was actually able to use the money represented on the 1099 as a tax write off.
So does anyone on the forum know if that is true? If so, how could they claim para-mutuel betting funds as a write off? After all they themselves are not paying anything.

 

Why don’t you ask your tax accountant? He’s the one that told you they could do it…

 

Well 10 point, I am going to nail him down on that today sometime. I thought maybe there were some other knowledgeable people who could explain how someone might get away with it.
I guess you are not one of those. But thank you anyway.

 

I am not a tax accountant, though I have owned multiple businesses. In any event, I queried chatGPT (AI) for the answer. Here is what it stated:


Trap shooting winnings are generally considered taxable income and would typically be reported on a Form 1099-MISC if they exceed $600 in a year.

Are Trap Shooting Winnings Parimutuel?
No, trap shooting winnings are not considered parimutuel betting (which applies to horse racing, dog racing, and similar pool-based betting systems). Instead, they are treated as prize winnings from a competition.

If your winnings are substantial, the event organizer may issue you a Form W-2G (used for gambling winnings), but in most cases, 1099-MISC is the correct form for reporting. You are responsible for reporting all winnings on your tax return, even if you do not receive a 1099.

 

Anything over 6 hundo, you gotta pay uncle Sammy. Just as if you won at the casino

 

If the winnings are reported on a 1099-Misc, can't the expenses to generate that income also be deductible?

 

Let me see if I can be more clear on the question.
Does the entity filing the 1099-misc with the IRS, get credit as a tax write off of said funds??
Because in these cases the funds being won are not provided by the entity, in this case The C.C.
The the prize money belongs to and is contributed by the shooters. It is a "pool" type of system. Regardless of wether AI calls it para-mutuel or not.

 

I was finally able to engage my tax accountant on the subject today. The short answer is it depends on how the business is set up. For example, if they are a nonprofit of some sort and they take funds into their accounts and redistribute them, the 1099 would be the way they show it on their tax forms. So it may be a requirement.
My understanding is that if they are not some kind of an exempt business entity, then they may not even be required to issue a 1099. And regardless of what the business type is, it would be fraudulent if they were indeed benefiting from it. There is also the possibility, that they are not required to do it at all because it is not their money that is being distributed.

 

i can set down at the blackjack table and every time have it for 600.00 they don"t come by with a tax form and if i cash out 5k worth of chips they don't hand out a tax form. but if i hit 600 plus on a slot machine tax form. that is at one setting if i hit for 150.00 at the karens cup. and get 450.00 at the other shoots there should not be a 1099 sent . it at one setting not a yearly running total. that is a scam....

 

I'm not sure exactly how the Cardinal Center would claim para-mutuel betting funds as a write-off. If they are not paying anything, it's not clear what they would be writing off.

 

Generally when a business donates money or prizes, it is a tax write off for them. Just ask one of the sponsers/vendors who put up purse money or give away a firearm.

 

This horse shit came from RJ Stuart.years ago so what this crap is saying is if I play a 20.00 Lewis class and hit for 20.00 30 time through out all shoots at the cardinal center. I won 600.00 bullshit I lost money. I didn't win shit. Scam

 

Absolutely did NOT come from Bob Stuart! Look into a former ATA President from a state north of Ohio.

 

Just in case anyone decides to actually go to a casino and play, you don’t get paperwork unless it is a $1200.00 hit either on a line hit or the total on a “bonus round”.

The gaming industry is trying to get that raised to $5000.00. The reason is that they can employ less people. The larger operations now have the “Fast Pay” option. After a 1200.00+ hit you can put in your players PIN number and the winnings are deposited in the credit side of the machine and they mail you the paperwork. Less times they have to pay, less people to do it. Just like my local Lowe’s or supermarket. More self service registers? Less employees.
There is a $40,000.00 limit on the credits though. Win more than 40K and the still have to handpay you and do the paperwork.
Now, this is only for slot players. You can win LARGE sums, $78,000.00 for instance, on a great run at table games, and you don’t pay one cent in tax.
Even better and easier? Win outside the USA. Play in the Bahamas or Aruba and win over $10,000, no problem. Split the winnings between you and the wife so you are both claiming under the 10K threshold and it’s Welcome Home folks move along.

FYI, the American casinos DO help the slot players out by giving you a “Win/Loss” statement at the end of the year if you need one. They count EVERY PENNY you put into a machine as a Loss so that goes against your winnings. Before that Ahole fauci told all the businesses they had to close for months in 2020 we did pretty well.
$53,000 in 2018 and $48,000 in 2019 in handpays. We didn’t pay any tax on that money. Things are just starting to pick up. So far in 2025 we have $11,400.00 from 5 handpays and it’s only the second quarter.

I keep waiting for someone to bet me that never happened so I can show them the pictures of my 1040 forms and the slot machines themselves so I can make some more money. LOL

 

Flyers,
I think u know more about gambling than I care to.
But happy u r doing well!!

 

Just setting the record straight. I’ve found that people that talk about how much someone has to pay after a win in a casino NEVER won in a casino.

 

Save your entry costs and expenses for hotels and travel and write it off against your winnings.

 

money shooters, You can only write off expenses in an equal amount to match your winnings. Roger C.

 

Most shooters aren’t going to win enough to have to file taxes on the winnings these days, so whatever. As for a club that’s done nothing but help provide a great venue for shooters to compete, who cares what they can write off? I’m happy and hope they make a ton of money for years to come.