McCain's Tax Returns - Why Hasn't He Reported His Gambling Gains and Losses?

Submitted by SadInAmerica on Sun, 07/13/2008 - 4:16pm.

I previously blogged the release of John McCain's 2006 and 2007 tax returns.  The Daily Kos asks why McCain has not reported any gambling gains on Line 21, or gambling losses on Line 28, Schedule A, of his Form 1040, given widespread press reports that he is a frequent gambler at casinos who wagers thousands of dollars per trip.  If the press reports are accurate, it is hard to imagine that McCain would not have won at least $600 on some occasions and received a Form W-G: ~ by Paul L. Caron

What makes this lack of reporting more than a bit odd is we are talking about a guy who typically spent thousands of dollars on accountants to file his returns. He can't claim "I messed up" because he had professionals filling out the paperwork. Moreover, the returns that are part of the public record go into such fine detail they even note such trivial things as a mere 14 bucks in interest from a JP Morgan account (cf. 2006 tax returns) - yet in these same forms line 21 is totally blank. When you look at his Schedule A, you see a similar degree of scrupulous detail... yet there is still no mention of any gambling losses. So as far as the returns go, he never gambled. That is hard to reconcile with the fact it is well-known that he is a high-stakes craps player. ...

If he is winning and not declaring -- that's a crime. If he is losing and not taking the deductions, that is peculiar for a lot of obvious reasons. It means he never wins. If he is losing his own money and not taking the deduction, it looks like he is trying to hide a problem. If he is losing other people's money that certainly raises questions about influence peddling if they have business in front of his committee. Whether he is winning or losing, it doesn't take a whole lot of imagination to see how a lobbyist bankrolling the senator's marathon craps session might be using this as a way of funnelling money into the senator's coffers without drawing attention to the transactions.

Finally, all this talk about unreported transactions raises raises more questions no one in the media will likely bother to ask: Has anyone seen Cindy McCain's tax returns? Does anyone know if she ever filed a 5754? Is he hiding his winnings on her tax forms? Is he burying his losses on her forms? With all the interest paid to Obama's mortgage payments, you would think something this glaring would get more media attention. Of course, then the press would have to get off the Lapdog Express and that wouldn't be any fun, would it?

See also Huffington Post: John McCain's Gambling Problem -- and Ours?






 Paul L. Caron - July 12, 2008 - source TaxProf Blog

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Submitted by SadInAmerica on Sun, 07/13/2008 - 4:16pm.