Capital gains: No individual income tax.
A House Ways and Means Committee vote moved forward legislation to repeal the 90% cap on gambling loss deductions, a change supporters say can create taxable income even for bettors who break even.
A House committee voted 38-5 to undo the 90% cap on gambling loss deductions and restore a 100% deduction retroactive to Jan. 1, 2026, a move that could reverse taxable “phantom” income for some players.
A House Ways and Means Committee vote moved forward legislation that would reverse the 90% cap on deducting gambling losses against winnings before the rule is set to apply to 2026 tax years.
The House Ways and Means Committee approved legislation that would repeal the new 90% cap on gambling loss deductions, but the change still needs House, Senate and presidential approval before 2027.