If anyone is worried about paying the taxes on these "gambling" winnings, I'd like to suggest a very effective tax strategy.
Go to your loval OTB once a week and collect losing wager slips off the floor. You can use these as an offset to any gambling winnings.
and don't forget to deduct the $1250 entry fee from any winnings for your taxes. Not to steal your thunder, but collecting wager slips will not offset your winnings here. Gambling losses only offset gambling winnings. The NFFC and other high stakes contests are considered games of skill. Instead of receiving a W-2G, you get a 1099. Yes, you can deduct the cost of the contest, as well as travel and food expenses.
NOTE: If any part of my statement is not true, remind me to fire my accountant
![Surprised :eek:](./images/smilies/icon_e_surprised.gif)