Tax Memo #1/gambling Activities

Issues & Facts Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every erupt weekend to gamble. He would like to know what criteria are expend to de stipulationine whether his gambling activities constitute a trade or employment sector for federal income tax purposes and whether or non you speak up his gambling activities qualify for trade or channel status. The practice voice trade or business is make use ofd repeatedly throughout the cozy r levelue Code. Despite its regular use of that term the code or the Treasury Regulations do not ready that phase. It is up to the coquets to state the facts and mark the legal points. regular in the eyes of the court or the business innovation the irresolution is whether an income-producing application constitutes a trade or business. The Internal Revenue Service has defined trade or business as an application carried on for livelihood or for profi t. For an activity to be considered a business a profit want essential be present and some type of stinting activity must be involved. It is distinguished from an activity act in purely for personal satisfaction. In Valenti v. Commissioner, the court reiterated that atom 165(d) applies to skipper risk takers as well as unskilled gambler The court stated, ... it has been held both by this Court and diverse courts of appeals that wagering losses cannot be deducted, except to the extent of the taxpayers gains from wagering activities, and it has been so held even where such activities were demanded as a trade or business as contrary to a hobby Therefore, for example, if a inexpert gambler visits a casino one Saturday and accumulates $600 of losses and $ two hundred of gains, that recreational gambler may deduct $200 of the losses. oddment Since Dr Green does not conduct his gambling activities in the identical manner and with the same attentive to treat this activ ity as a profitable business as he does with! his medical exam practice, nor does he need to...If you lack to get a unspoiled essay, order it on our website: OrderCustomPaper.com

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