Even those amongst us who spend a lot of time on DFS as an activity can have a losing calendar year. That being said quite a few have asked me if they can write off their DFS losses and related expenses against their Wages, Business and Other Income. The answer is yes and no. Again, look at the Hobby Loss factors from above in particular 3 of 5 years being profitable. If you’re calling me asking whether you can take $10,000 in DFS Losses against $70,000 in Wages on your Adjusted Gross Income and have never been profitable in the past, my short answer is I’m not going to feel comfortable taking the loss if you come to me pretty much without a PLAN. This means, if you’re not running DFS activities in a business-like manner nor do you have a business plan per se, I will likely treat your loss as a Hobby and call it what it is.
That being said, Daily Fantasy Taxes can work on a Business Plan tailor made for your needs. As a large volume player, this can be an integral part of your overall strategy where you COULD take losses in bad years. We’d all like to be profitable in this DFS endeavor. However, even in the best of circumstances and strategies, one can still be faced with substantial defeats and nasty cold streaks.