Re:Why nobody ever wins the car at the mall
by Dylan16807 on Friday June 29, 2018 @07:13PM
(#17428556)
> The only difference is that as a professional, you're filing your taxes as a business.
In gambling, you're putting money into the system, possibly applying skill, and getting money back out.
With free prizes, you're just being given things with nothing in return.
That's a big difference. And not one that you can effectively game. It's very clear whether you're inputting money or not.
The only difference is that as a professional, you're filing your taxes as a business. It's still "income"[1], it's just the entity filing is a business rather than a specific person.
Regardless, a prize you win is not taxed as a sale.
> There's no reason they have to be taxed the same.
To the extent they're treated inconsistently, people will use the discrepancy to game the system. Politicians do that deliberately, of course, since it's an opportunity for graft.
[1]: https://www.investopedia.com/terms/i/income.asp