Horseplayers will still be able to fully deduct losses against winnings

Following targeted lobbying from the National Thoroughbred Racing Association (NTRA), “Fiscal Cliff” legislation passed yesterday by both the U.S. Senate and U.S. House of Representatives contained language in Section 68 (c)(3) of the tax code that exempts wagering losses from being subject to the newly enacted limitation on itemized deductions.  (Click here for more details on the taxation of gambling winnings.)

“I salute our legislative team in Washington,” said Alex Waldrop, President and CEO of the NTRA. “They not only identified this key issue for members of Congress while various fiscal cliff proposals were in their early stages, the team also proposed a solution that was ultimately adopted. While the outcome of these latest negotiations can be viewed as a victory for horseplayers, the issue of comprehensive tax reform is expected to be taken up later this year. The NTRA will continue to work closely on this issue and others affecting horseracing and breeding. ”

The NTRA is a broad-based coalition of horse racing interests consisting of leading Thoroughbred racetracks, owners, breeders, trainers, horseplayers and affiliated horse racing associations, charged with increasing the popularity of horse racing and improving economic conditions for industry participants. The NTRA has offices in Lexington, Ky., and New York City. NTRA press releases appear on the NTRA web site, NTRA.com.