Series Episode 06 | One Big Beautiful Bill
Attention gamblers: new limits on gambling loss deductions
The One Big Beautiful Bill Act, effective January 1, 2026, limits the deductibility of gambling losses to 90% of your total winnings.
This means that even if your wins and losses break even, you may still owe federal tax on the remaining 10%.
For example, if you win $10,000 and lose the same amount, you can only deduct $9,000, leaving $1,000 in taxable income.
This change could create what’s called “phantom income”, taxable income that reflects no actual profit. Both casual bettors and professional gamblers are affected, potentially increasing tax obligations unexpectedly.
Want to avoid surprises at tax time and stay fully compliant?
Schedule a consultation with Leader CPA for strategic guidance under these new rules.
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