Some gamblers are buying losing lottery tickets on eBay as a way to offset taxes on their gambling wins | Fortune
Gamblers buy losing lottery tickets on eBay to fraudulently offset taxes on winnings, exploiting IRS deduction rules.Summary
The article reveals a scheme where gamblers purchase stacks of losing lottery tickets on eBay, often marketed as "tax write-offs," to fabricate documentation for deducting gambling losses against winnings on their tax returns. The IRS allows itemizers to deduct losses up to the amount of reported winnings, provided they keep accurate records. Experts like UNC accounting professor Jeffrey Hoopes call this blatant tax fraud. eBay's policy permits selling expired tickets as collectibles but prohibits listings promoting improper uses; however, loopholes persist. Data shows listing spikes around tax deadlines, indicating strategic timing. A 2024 TIGTA audit found massive underreporting of gambling income. Notably, the 2026 tax year introduces a 90% cap on loss deductions, reducing the benefit of even legitimate losses.
(Source：Fortune)