Effect of Tax Change on Horse Players
For many years horseplayers have been questioning the tax system. The old tax system doesn’t seem fair and there must be a new law in place. Finally, things are about to change, and the tax law will be modernized soon.
Due to the pressure from the key players and other prominent people in the industry, the NTRA has decided to cut the process short. Instead of going to Congress, they went to the Treasury Department and Internal Revenue Service to make the necessary tax changes. As a result, we can expect some good results soon.
Over the past few years, thousands of horseplayers have given written complaints about the tax system. They have tried to explain why the old tax system was unfair and caused a strain on the players and the entire industry as well.
Betting in horse races is very common and popular. Now due to the online casinos that provide online betting options, more people are into horse betting. These online casinos are offering different lucrative things for gamblers so that they sign up.
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The actual problem was that the IRS was fixing the threshold for the amount of the winnings applicable for taxes. When doing so, they were only considering the base amount of the wager and ignoring the total cost.
When exotic wagering came to the scene, the minimum base amount reduced. So, there were situations where players could trigger withholding and reporting for tickets on which they lost money.
In the new tax system, the total amount of money will be taken into account. This will make tax returns easy and reduce the possibility of reporting any mistaken data. The old system allowed players to claim the losses to subtract tax liability on the winnings. However, still this old rule cost the gamblers a lot of money.
The old system was not supportive of gamblers. 25% of their winning money was withheld, which allowed the gamblers to receive only a fraction of their winning money.
It was told that in horse betting, you could win a lot of money by making small investments within a short time. But the old tax system proved it wrong.
Now as the new tax rule will be coming up, bettors will be at an advantage. They will be able to take more of their winning money home and won’t have to pay too much on tax.
It will ultimately benefit the industry and more gamblers will be interested in betting on horses.