The House Rules Committee reportedly declined to advance an amendment restoring full federal deductions for gambling losses. The proposal would have reversed the 90% deduction cap and was left off a spending bill that passed the House.
Bettors and tax advisers must account for the retained 90% cap because the proposed restoration was omitted from the spending bill.
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Reportedly, Nevada lawmakers have renewed efforts to restore the full federal deduction for gambling losses. Representative Steven Horsford called for action over a congressional change that could create tax liabilities for gamblers who break even.
Nevada legislators are making another attempt to bring back the complete federal write-off for gambling losses. That goal has yet to be achieved, even though more than twelve months have passed since Congress made a change that can force some bettors to owe tax despite finishing even. At the Global Gaming Expo in Las Vegas, Democratic Representative Steven Horsford again urged action, backing a bill that would let taxpayers write off all gambling losses against winnings, capped at the amount won.
It was reported that NTRA asked the US Treasury and IRS to support legislation restoring the 100% gambling loss deduction. The racing association argues that the current 90% cap can create tax liabilities even when bettors break even.
The House Ways and Means Committee advanced a measure to restore the full federal deduction for gambling losses, Rep. Dina Titus said. The proposal was attached to H.R. 10357 and would reverse the 90% cap scheduled to take effect on 1 January 2027; House and Senate approval and the president’s signature would still be required.
A US House committee advanced legislation sponsored by Nevada representative Dina Titus to reverse the gambling-loss tax cap, according to reports. The proposed FAIR BET Act would restore a 100% deduction limit for bettors, and Titus aims to introduce it before the end of 2026.
Reportedly, US Representative Dina Titus is urging the House tax committee to take up her FAIR BET legislation. The proposal would raise the federal deduction for gambling losses from 90% to 100%, but neither it nor a similar Senate bill has reached a floor vote.
US Representative Dina Titus, a Nevada Democrat, is continuing to press the House Ways and Means Committee to advance her FAIR BET Act, which would restore the federal deduction for gambling losses to 100%, according to a report. Neither the FAIR BET Act nor a similar Senate bill has been put to a floor vote more than a year after their introduction.