Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: play Activities Issue & Facts Dr. Green is a practicing physician in simoleons who, as an zealous blackjack and slot machine player, travels to Las Vegas each other pass to gamble. He would like to know what criteria argon used to limit whether his frolic activities constitute a switch over or phone line for federal income assess purposes and whether or non his free rein activities  particularize for softwood or business status. If Dr. Greens childs play activities do not qualify as a trade or business, cannister he deduct his gambling-related travel and housing expenses a put one overst his gambling net profit? Finally, assume Dr. Greens wife, Mrs. Green, gambles to the same terminus that Dr. Green gambles and the Greens tear a joint tax return. If Mrs. Green has a boastful net gambling gain for the year and Dr. Green has a large net gambling discharge, can they combine their gambli ng transactions and use his release to offset her winnings? relevant Case Law, Code & Regulations The IRS has steerage regarding gambling winning and loss associated with federal taxation. Under question 419, gambling winnings are experty taxable and essential be account on tax return. Tax remunerator must file organize 1040 and include all of his or her winnings.

manoeuvre income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes exchange winnings and in addition the fair market cherish of prizes such as cars and trips. all told gambling winnings must be reported, including winnings` that ! are not loose to withholding. In addition, taxpayer whitethorn be compulsory to pay an estimated tax on your gambling winnings. Also taxpayer may deduct gambling losses only if tax payer itemizes deductions. Claim gambling losses as a mixed deduction that is not subject to the 2% limit on form 1040, Schedule A. And its make out of losses you deduct may not be much than the amount of gambling income reported on your return. It is important to...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper