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Horse Betting – Some Key Basics For A Beginner
Horse betting is one of the most challenging activities for someone with a penchant for gambling. Those addicted to this activity spend hours betting on the horses, handicapping the races, and researching the race methods. However, if you are a newbie, you will find getting into horse stakes quite perplexing. But once you get familiar with the system, wagering on horses is simple fun.
Here are some basics on Horse Bets that will help you make a start.
Starting A Horse Bet
Starting a bet and knowing how much money to place is the initial challenge that a newbie faces. First, it is important to know the type of wagers that go around.
Win – The word ‘win’ means picking the horse that you expect to win the race. If the horse wins, you win the bet.
Place – When you place a bet to ‘place’, the horse must finish either first or second. Though your stakes are lesser than ‘win’, it is still a good Horse Bet.
Show – ‘Show’ is a conservative bet when the horse finishes either first, second, or third. That’s a profitable wager, if chosen wisely.
Across the board – Here you place the bet in all the three positions. You are lucky, if the horse wins, because you collect the booty of all the three bets. If the charger finishes second, you show the bet and collect ‘place’. If the stallion finishes third, the rules permit you to collect only the show bet.
Once you are familiar with the above, it is up to you to decide your risk appetite. Nevertheless, it is prudent to keep aside a fixed amount for Horse Betting, and not wager on the money that you want to take home.
Some Exotic Online Betting Stakes
There are many forms of exotic bets that are more complex than the basic ‘win’, ‘place’, and ‘show’. Here are some examples.
Exacta – Here you pick the first and the second places in that order. Playing in multiple combinations is a very popular mode.
Quinella – The rules of Quinella are that you must pick horses that finish first and second. You win the bet if one of the horses finishes either first, or second.
Daily double – Here you must pick the winning horse in two successive races. The rules allow multiple combinations. That is, you win if each of the horses wins either of the successive races.
Superfecta – In Horse Betting, superfecta means that you select the horses that finish first, second, third, and fourth, in that order.
Some people believe that understanding the horse racing system is a pushover, and some magical formula exists for making a quick buck by handicapping and Horse Betting. The fact is, wagering on horses is complex and needs some practice, and a bit of intuition. There is an axiom that says – all systems work well for a period, and then profits start falling. You may spend a good part of your life betting on horses, and yet remain in the red. The keyword for success is to master the mental game to be a winner in Horse Betting.
Gambling Winnings and the IRS
In the United States gambling winnings are considered by the IRS to be taxable income and must be reported on your federal tax return. Gambling income includes, casino winnings, winnings from lotteries, and horse races. Cash winnings as well as the fair market value of prizes such as cars and trips etc. are eligible for Gambling taxes. A payer is required to issue you a Form W-2G or Form 1042-s if you receive gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported as income even if no casino tax is deducted. Foreign nationals such as residents of Canada and the United Kingdom may be exempt from paying tax and be subject to a full casino tax refund due to provisions within their tax treaties with the United States. It is advised for Foreign Nationals claiming tax treaty provisions to use the services of an IRS Certifying Acceptance Agent to effect a US tax recovery. You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Schedule A . However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses in order to claim your casino tax refunds. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to IRS Publication 529, Miscellaneous Deductions, for more information.
Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following information. – The date and type of your specific wager or wagering activity. – The name and address or location of the gambling establishment. – The names of other persons present with you at the gambling establishment. – The amount(s) you won or lost. Proof of winnings and losses. In addition to your diary, you should also have other documentation. You can generally prove your losses through , wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.
For specific wagering transactions, you can use the following items to support your winnings and losses. These recordkeeping suggestions are intended as general guidelines to help you establish your gambling winnings and losses. They are not all-inclusive. Your tax liability depends on your particular facts and circumstances.
Keno. Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records.
Slot machines. A record of the machine number and all winnings by date and time the machine was played. Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc.). The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier’s cage.
Bingo. A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.
Racing (horse, harness, dog, etc.). A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.
Lotteries. A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.