Following targeted lobbying from the National Thoroughbred Racing Association, "Fiscal Cliff" legislation passed Jan. 1 by both the U.S. Senate and House of Representatives contained language that exempts wagering losses from being subject to the newly enacted limitation on itemized deductions.
In general for non-professional players, gambling losses can be claimed against winnings. Limits on itemized deductions could have impacted the amount of gambling losses players could claim against winnings in a given year, leaving horseplayers more liable for taxes on winnings, if an exemption had not been granted.
"I salute our legislative team in Washington," said NTRA president Alex Waldrop. "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."