Charitable Gaming Newsletter - March 2019
Hello from the Charitable Gaming Group!
The purpose of this newsletter is to provide permit and license holders the resources they need to manage their gaming account. As you know, all activity related to your gaming permit or license is conducted through your Revenue Online account.
NEW PUBLICATIONS AVAILABLE AT OUR WEBSITE www.tax.alaska.gov/gaming
The following presentations are available at the gaming website under the Presentations link. :
Once you are at our website, navigate to Links and choose Presentations.
Excess expenses are one of the most common violations we see on the Annual Financial Statement, however with proactive monitoring it can usually be avoided.
Annually, gaming-related expenses are limited to 70 percent of adjusted gross income for pull-tabs and 90 percent of adjusted gross income for bingo and most other game types.
Consider reviewing Schedule AP on your 2018 Annual Financial Statement and take note of the Excess Expense Calculation. For example:
WORKSHEET: EXCESS EXPENSE CALCULATION
Game Type: Self-Directed Pull-Tabs
1. Adjusted Gross Income 14,500
2. Expense Percentage Limit .70
3. AGI X Expense Percentage Limit (Line 1 x Line 2) 10,150
4. Total Expenses 12,000
5. Excess Expenses (Line 4 less Line 3) 1,850
In the example above on line 5, we can see the organization exceeded the 70 percent expense limit for pull-tabs by $1,850. If your organization has exceeded the expense limit, or is close to exceeding the limit, consider monitoring gaming activity on a monthly or quarterly basis. This way, steps can be taken to reduce expenses before the end of the year. If you would like more information, please give us a call!
Sincerely,
The Charitable Gaming Group
Phone: (907) 465-2581
Email: dor.tax.gaming@alaska.gov
Website: www.tax.alaska.gov/gaming
Recent Posts
-
Maximizing Profits for your Pulltab Store: Strategies for Charitable Gaming Success
In the realm of Alaskan charitable gaming, pulltab stores play a crucial role in Alaskan Charities f …Mar 2nd 2024 -
Does the introduction of Electronic Pulltabs reduce the sales of Paper Pulltabs?
At Alaska Indoor Sports we have been researching if the introduction of electronic pulltabs wil …Feb 14th 2024 -
What Factors make for a Profitable Pulltab Store in Alaska?
The profitability of an Alaskan pulltab stand or store depends on various factors. The profita …Feb 5th 2024